I have Puration Stock (PURA) issued to me in a dividend distribution from North American Cannabis Holdings (USMJ) and my broker tells me the stock is restricted and I can’t sell it. What do I do?
On July 28, 2015, Puration, Inc. (PURA) entered into a Share Exchange Agreement with North American Cannabis Holdings, Inc. (USMJ) where PURA acquired all of USMJ’s wholly owned interests in certain Joint Ventures with World Hemp Oil & NaturesComfortMeds. In exchange for the Joint Venture assets, PURA issued to USMJ two (2) series of Convertible Preferred Stock. Series (“A”) represented fifty-one percent (51%) voting control of PURA and Series (“B”) was designated for conversion into a number of common shares equal to the number of USMJ shares issued and outstanding at a date to be determined. On December 09, 2016, USMJ converted the Series “B” Preferred Shares into 56,521,149 common shares of PURA and distributed the PURA commons shares to the USMJ shareholders of record as of October 21, 2016.
The 56,521,149 common shares of PURA stock issued were not “registered” and were therefore not “free-trading.” In other words, the shares could not simply be deposited in a brokerage account and sold. The shares are “restricted.”
Those that own the restricted shares can contact a lawyer that specializes in securities law and request the lawyer to render an “opinion” regarding a lifting of the restriction based on regulatory rules and guidelines for various “exemptions” from registration. Such a lawyer will be able to guide you through the process of lifting the restriction so that your shares can be freely traded.
The information above regarding the Share Exchange Agreement between USMJ and PURA, and the subsequent Series “B” Preferred Stock conversion into common stock, and the issuance of that common stock through a dividend distribution is all available publicly on the OTC Markets website. This is the key information a lawyer would require to render an opinion on an exemption from registration that would permit a lifting of the restriction so that the shares could be freely traded.
The information here is not a guarantee that a lawyer will find the common shares issued through the Series “B” conversion and dividend distribution in compliance with any regulatory rules or guidelines governing potential exemptions.
Management is exploring the possibility of engaging a securities lawyer on behalf of those shareholders holding PURA common stock issued from the Series “B” conversion to render opinions for the lifting of restrictions. Again, this is not a guarantee that such an engagement will come to fruition. If such an engagement were to proceed, the earliest date anticipated for such an engagement to be in place would be December of this year, 2017.
Puration announced that EVERx CBD Infused Sports Water would be available at Drug Emporium. Is it on shelves at Drug Emporium yet?
On May 25, 2017, Puration, Inc. (PURA) announced an agreement with Drug Emporium to sell EVERx CBD Infused Sports Water. The agreement still stands, but EVERx is not yet available at Drug Emporium. Both PURA and Drug Emporium are eager to get EVERx on shelves. EVERx shipments to Drug Emporium store locations are anticipated to begin imminently.
Breaking News Update 2 PM 09/14/2017:
Puration Starts Shipping EVERx To Drug Emporium
Will EVERx be available for sale online?
A plan is in place and underway for EVERx CBD Infused Sports Water to be sold online. Earlier this year, an outside firm was engaged to develop an online sales and delivery application for EVERx. That application is not yet complete.
FREQUENTLY ASKED QUESTION
In conjunction with the American Cannabis Innovations (ACI) acquisition of the controlling interest in North American Cannabis Holdings, Inc. (USMJ) and Puration, Inc. (PURA), both USMJ and PURA are undergoing some business updates to include an update to communication strategies. A new consolidated website has been launched with the USMJ and PURA web addresses all linked to the new ACI website – www.aciconglomerated.com. The companies now have a consolidated email address – email@example.com. The companies have a new consolidated telephone number - 1 800 861 1350. The companies have a new consolidated physical address – 14065 Proton Rd, Farmers Branch, TX 75244. In conjunction with the transition to a new communications strategy, corporate communications have slowed in part due to the changes in websites, emails and phone numbers. Communications have also slowed in part while the companies’ various assets and strategies are reviewed, and an updated strategic plan is considered. Press releases have slowed down but not stopped. Keep looking for updates from the companies to be forthcoming as the ongoing strategic review continues, and the go-forward business strategy is developed.