PURA Stock Dividend To USMJ Shareholders Value-Potential
With PURA stock trading volume and price picking up, more message board conversation is also picking up about the planned dividend of PURA stock to USMJ shareholders.
USMJ Management recently stated that the dividend plan is to be announced at the end of July (See Below). The PURA 2015 Annual report states that USMJ and PURA have agreed to ‘amend’ the dividend plan (See Below).
From these two USMJ and PURA communications, I would speculate that 1. We will hear what the dividend is going to look like around the end of July and 2. That the plan to issue one share of PURA stock for every share of USMJ has been ‘amended’ and some other ratio will be issued.
One for one is probably not realistic. Why would PURA want to issue billions of shares from the get go and why would shareholders want billions of shares issued?
Just putting a speculative stake in the ground to do some spit-balling of the potential value of the dividend, let’s say for every 200 shares of USMJ, a shareholder received on share of PURA. That would roughly double the PURA I/O from 50 Million to around 100 Million. An I/O of 100 million is well within a healthy range for a micro-cap public company to build a respectable PPS and market-cap.
I threw some numbers in a spread sheet (below) to see what this might look like. I assumed USMJ would issue all its authorized stock – 10B. That would be a market-cap of $1 million at a PPS of $0.001. The 2 year wtd avg USMJ PPS is just under $0.0009. USMJ’s market cap at the wtd avg PPS with 10B I/O would be 9 Million. So it’s safe to say a number of shareholders are underwater.
Now let’s look at how a PURA dividend can get a USMJ shareholder back to the investment surface and maybe even make some money. Look at the tables below for the value 50 million PURA shares that in this speculative model would be issued in a dividend to USMJ shareholders. Then look at the combined value of the dividend with the value of USMJ stock. It looks like PURA stock with a PPS of $0.10 - $0.20 issued in a dividend gets everyone whole again and no doubt makes a bundle for those that have come in lately to the USMJ stock or averaged down along the way. Also consider what the combined value looks like if USMJ’s PPS begins to recover even to $0.0002. I personally think it has the potential to recover to at least the wtd avg $0.0009 PPS. A recovered USMJ PPS combined with a $0.10 - $0.20 PURA dividend is not unreasonable and darned attractive.
If the comparisons of GWPH to PURA are remotely correct, maybe the PURA PPS can see up to a $1.00 PPS. Now the dividend to USMJ shareholders is definitely worth all the pain and suffering that may have been endured over the course of the dwindling PPS.
In the most recent USMJ CEO presentation, Steven Rash discusses doing this spinoff dividend thing a couple of more times with additional products and services coming out of the Company’s pilot projects.
Rome wasn’t built in a day (nor destroyed in a day). I like/tend to believe the folks behind USMJ and PURA are legit – not perfect, but legit and working really hard to build long-term value.
Their simply seems to be too much effort going on here for this to be pump and dump. If it were, I think they’d all be gone and not getting behind the spinoff PURA.
OK – I’ve written too much for a message board and probably no one will read it anyway. So, I think I’ll stop now. I hope the tables here are at least of some value.
Recent USMJ Management Presentation:
"The Company’s cannabis extraction pilot has resulted in the establishment of the independent public company Puration, from which a dividend to be issued to North American Cannabis Shareholders is in the works. We anticipate announcing the dividend plan before the end of July."
Above statement on the USMJ Website:
http://www.growusmj.com/news/2016/7/5/north-a...nd-everx
The PURA 2015 Annual Report also addressing the dividend.
Excerpt From PURA 2015 Annual Report:
On July 28, 2015, the Company entered into a Share Exchange Agreement
with North American Cannabis Holdings, Inc. (USMJ), whereas it agreed to
acquire all of its wholly owned interests in certain Joint Ventures with World
Hemp Oil & NaturesComfortMeds, as well as, certain pledged debts attached
by a lien to such interests in exchange for two (2) Convertible Preferred Stock
Series to be created and issued by Puration, Inc. One Series shall represent
fifty-one percent (51%) voting control of Puration, Inc. and the other shall be
convertible into a number of common shares equal to the number of North
American Cannabis Holdings, Inc. shares issued and outstanding at a date to
be determined. The agreement initially called for August 03, 2015 but both
parties agreed to amend it to a future date to be determined, The first
Convertible Preferred Stock Series has been issued. The Convertible
Preferred Stock Series to be converted into common shares equaling the
number of North American Cannabis Holdings, Inc. shares issued and
outstanding remains pending the finalization of further plans to distribute
Puration, Inc. common stock to the North American Cannabis Holdings, Inc.
shareholders
Link to Full Filing:
http://www.otcmarkets.com/financialReportView...54017 ;
With PURA stock trading volume and price picking up, more message board conversation is also picking up about the planned dividend of PURA stock to USMJ shareholders.
USMJ Management recently stated that the dividend plan is to be announced at the end of July (See Below). The PURA 2015 Annual report states that USMJ and PURA have agreed to ‘amend’ the dividend plan (See Below).
From these two USMJ and PURA communications, I would speculate that 1. We will hear what the dividend is going to look like around the end of July and 2. That the plan to issue one share of PURA stock for every share of USMJ has been ‘amended’ and some other ratio will be issued.
One for one is probably not realistic. Why would PURA want to issue billions of shares from the get go and why would shareholders want billions of shares issued?
Just putting a speculative stake in the ground to do some spit-balling of the potential value of the dividend, let’s say for every 200 shares of USMJ, a shareholder received on share of PURA. That would roughly double the PURA I/O from 50 Million to around 100 Million. An I/O of 100 million is well within a healthy range for a micro-cap public company to build a respectable PPS and market-cap.
I threw some numbers in a spread sheet (below) to see what this might look like. I assumed USMJ would issue all its authorized stock – 10B. That would be a market-cap of $1 million at a PPS of $0.001. The 2 year wtd avg USMJ PPS is just under $0.0009. USMJ’s market cap at the wtd avg PPS with 10B I/O would be 9 Million. So it’s safe to say a number of shareholders are underwater.
Now let’s look at how a PURA dividend can get a USMJ shareholder back to the investment surface and maybe even make some money. Look at the tables below for the value 50 million PURA shares that in this speculative model would be issued in a dividend to USMJ shareholders. Then look at the combined value of the dividend with the value of USMJ stock. It looks like PURA stock with a PPS of $0.10 - $0.20 issued in a dividend gets everyone whole again and no doubt makes a bundle for those that have come in lately to the USMJ stock or averaged down along the way. Also consider what the combined value looks like if USMJ’s PPS begins to recover even to $0.0002. I personally think it has the potential to recover to at least the wtd avg $0.0009 PPS. A recovered USMJ PPS combined with a $0.10 - $0.20 PURA dividend is not unreasonable and darned attractive.
If the comparisons of GWPH to PURA are remotely correct, maybe the PURA PPS can see up to a $1.00 PPS. Now the dividend to USMJ shareholders is definitely worth all the pain and suffering that may have been endured over the course of the dwindling PPS.
In the most recent USMJ CEO presentation, Steven Rash discusses doing this spinoff dividend thing a couple of more times with additional products and services coming out of the Company’s pilot projects.
Rome wasn’t built in a day (nor destroyed in a day). I like/tend to believe the folks behind USMJ and PURA are legit – not perfect, but legit and working really hard to build long-term value.
Their simply seems to be too much effort going on here for this to be pump and dump. If it were, I think they’d all be gone and not getting behind the spinoff PURA.
OK – I’ve written too much for a message board and probably no one will read it anyway. So, I think I’ll stop now. I hope the tables here are at least of some value.
Recent USMJ Management Presentation:
"The Company’s cannabis extraction pilot has resulted in the establishment of the independent public company Puration, from which a dividend to be issued to North American Cannabis Shareholders is in the works. We anticipate announcing the dividend plan before the end of July."
Above statement on the USMJ Website:
http://www.growusmj.com/news/2016/7/5/north-a...nd-everx
The PURA 2015 Annual Report also addressing the dividend.
Excerpt From PURA 2015 Annual Report:
On July 28, 2015, the Company entered into a Share Exchange Agreement
with North American Cannabis Holdings, Inc. (USMJ), whereas it agreed to
acquire all of its wholly owned interests in certain Joint Ventures with World
Hemp Oil & NaturesComfortMeds, as well as, certain pledged debts attached
by a lien to such interests in exchange for two (2) Convertible Preferred Stock
Series to be created and issued by Puration, Inc. One Series shall represent
fifty-one percent (51%) voting control of Puration, Inc. and the other shall be
convertible into a number of common shares equal to the number of North
American Cannabis Holdings, Inc. shares issued and outstanding at a date to
be determined. The agreement initially called for August 03, 2015 but both
parties agreed to amend it to a future date to be determined, The first
Convertible Preferred Stock Series has been issued. The Convertible
Preferred Stock Series to be converted into common shares equaling the
number of North American Cannabis Holdings, Inc. shares issued and
outstanding remains pending the finalization of further plans to distribute
Puration, Inc. common stock to the North American Cannabis Holdings, Inc.
shareholders
Link to Full Filing:
http://www.otcmarkets.com/financialReportView...54017 ;
