North American Cannabis Holdings Inc (USMJ)

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USMJ Announces Spinoff and Dividend LOI Similar To PURA
Source: InvestorsHub NewsWire
LOI Structured To Issue One New Share Of Stock For Every Fifty Shares Of USMJ Stock W/No Recap


DALLAS, TX -- October 5, 2018 -- InvestorsHub NewsWire

North American Cannabis Holdings (USOTC: USMJ) ("USMJ") has a letter of intent (LOI) to affect a spinoff similar to the transaction announced yesterday with Puration, Inc. (USOTC: PURA) (“PURA”) and Nouveau Life Pharmaceuticals, Inc. (USOTC: NOUV) (“NOUV”).  We just haven’t yet disclosed the name of target company, but we plan to by the end of next week and we accordingly plan to close the spinoff transaction with the target company promptly thereafter.

The USMJ spinoff transaction LOI details the intended sale of USMJ’s cannabis theme restaurant subsidiary to the yet to be disclosed public company in exchange for a security issued by the target company that will be converted into common shares of the target subsidiary and distributed to the shareholders of USMJ in a stock dividend distribution.  The planned dividend distribution ratio is structured for every USMJ shareholder to receive one share of target company stock for every fifty shares they own of USMJ.  The dividend distribution plan is not contingent on a recapitalization of either USMJ or the target company.  In other words, neither USMJ nor the target company intend to reverse of forward split the stock of the respective company.  In further clarification of the planned spinoff transaction, USMJ shareholders keep all the stock they own and are issued new shares in the target company.

The spinoff transaction is part of a strategic plan for USMJ to leverage its cannabis market sector brand name recognition by launching and rapidly expanding a cannabis retail e-commerce business – the Amazon of cannabis, if you will.
Learn more about the company’s overall business strategy and history at www.growusmj.com
Disclaimer/Safe Harbor: 

This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease. 

Steven Rash
CEO North American Cannabis Holdings, Inc.
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