FT LAUDERDALE, FL--(Marketwired - Nov 14, 2016) - PotNetwork Holdings Inc. ( OTC PINK : POTN ) is pleased to announce that the Company has concluded negotiations and repurchased over 1.2 Million of the Company's shares of the Company's convertible preferred stock, in a private transaction that will further substantially reduce outstanding shares held by former shareholders.
In conjunction with PotNetwork Holdings Inc.'s recent change in Management, the Company has committed to protect the integrity of the stock structure by preventing dilution whenever possible. Per the terms of the agreement, 1,241,847 of convertible preferred series E shares have been acquired from a previous member of management, in exchange for a liability release.
The purchased shares were convertible at a ratio of 10,000 to 1, so once converted, the Company would have had 12,418,700 more free trading common shares in the float. As a result of the transaction, the Company has prevented the equivalent of 12,418,700 common shares which would be over 12% of all outstanding common shares.
This buyback is directly aligned with PotNetwork's rebuilding strategy, and exemplifies the level of confidence in the Company's potential. The Company's commitment to strengthening a solid foundation is one of its main priorities moving forward.
The convertible note holder has surrendered the certificates, and the shares have now been retired.
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