Green Cures and Botanical Distribution Inc (GRCU)

[stervc]

Here’s why such is a non-issue for GRCU…

I spoke to OTC Markets before on this issue. It appears that some are mixing SEC requirements with OTC Markets requirements. These are two different and separate requirements. Some are not understanding that the acquisition ”is” fully disclosed. Just because financials of the old company of which are totally 100% redundant and nonrelated to the new company moving forward cannot be generated, doesn’t mean that the acquisition is not fully disclosed. It depends on who glasses you are looking through at such. Through the glasses of the SEC, the acquisition ”is not” considered fully disclosed. However, through the glasses of OTC Markets, of which is where GRCU exists to trade, the acquisition ”is” considered fully disclosed. Proof of the acquisition being fully disclosed is indicated within the GRCU filings within OTC Markets below:
http://www.otcmarkets.com/stock/GRCU/filings

Again, it appears that some are mixing SEC requirements with OTC Markets requirements. Again, these are two different and separate requirements. I was told by OTC Markets that they would not require previous financials of the old company for a new company taking over the old company as long as it is publicly indicated that the new company was not able to obtain the old financials from the old company (or any of the previous managements’ predecessors). This is indicated within the second paragraph of the GRCU recent filing below:
http://www.otcmarkets.com/financialReportViewer?symbol=GRCU&id=120879

On another side note, also important to note within that second paragraph is how GRCU is basically debt free since the exiting entity took all of its debt and liabilities with them to give GRCU a fresh and clean start.

Now back to the topic at hand. Basically, a company will be ”excused” from providing the previous company’s financials if they are unable to obtain them from the previous company under OTC Markets requirements. This is an OTC Markets requirement to allow the new company a fair chance to obtain OTC Pink Current Information Status after proving itself to be real to OTC Markets. This is ”not” an SEC requirement for the excusing of any of the previous company’s financials. OTC Markets have a system of “checks & balances” intact which allows them to feel secure about a company having legit and sincere intentions for moving forward. GRCU has passed this verification for moving forward and will prove such after being awarded current status once again upon delivering their financials to OTC Markets by the end of July 2014 time frame. Anyone not believing this should call OTC Markets and ask them.

This is actually common sense delivered by OTC Markets because they understand that a new company cannot squeeze water out of a rock. If a company (such as GRCU) proves that it is a legit company with a legit business plan with a legit operations, then OTC Markets understand that the financials of the company moving forward are what’s more important than previous financials of the past of which would be 100% unrelated to the newly legit operations moving forward. This is not throwing the old operations under the bus, but it is giving a legit operations a fair chance at a new start… ITS OWN START. Most of the time, from my experiences of seeing deals like these done before within the market, the managements are totally unrelated to each other and never had previously known of each other until such transaction to take control of the entity transpires.

All the above means for GRCU is that if a they have a desire to become a fully reporting SEC filing company, they would have to keep their nose clean for 2 years to wait until then to file Audited Financials with the SEC because of the SEC requirement of needing to have 2 years of audited financials. Until then, the company will continue trading on the OTC Markets before doing such which is very fine by market standards of today. There are many companies that simply even after 2 years elect to remain on the OTC Markets for quite a few legit reasons to not deal with trading as a fully reporting SEC filing company. Some companies are very content with remaining current on the Pink Sheets to exist within the market. Here are some successful examples of some multi-billion dollar companies that have elected to remain on the OTC Markets for US trading purposes for a better understanding:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=85598739

v/r
Sterling