VANCOUVER, British Columbia, April 29, 2021 (GLOBE NEWSWIRE) – PureK Holdings Corp. (the “Companies“or”PureK“) (TSX Venture: PKAN) is pleased to announce that the previously announced acquisition of all outstanding membership interests in Nirvana Group, LLC (“. “nirvana“), A Florida-based company that specializes in the development, manufacture and sale of natural wellness products for pets, including the BudaPets brand.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76f1b095-30a1-4e30-bf70-1088c60f77be
The BudaPets brand complements the company’s existing pet care portfolio, which includes PureKana Pet, a division of the company’s market-leading CBD company, PureKana, LLC (“PureKana“). As previously announced in a press release dated February 19, 2021, PureK and PureKana also recently acquired No BS Skincare, the industry leader in skin care and beauty care with clean formulas. The company’s acquisition of both brands aims to break into some of the fastest growing global market categories.
“We are excited to add the BudaPets brand to the PureK Holdings portfolio to address a broader customer base and the wellness needs of their best friends,” said Kathy Casey, CEO of PureK. “BudaPets fits perfectly into PureK Holdings’ growth strategy, which focuses on the global animal care, skin care and plant-based foods and beverages categories. BudaPets is now joining the PureKana and No BS brands to lead innovation in categories where nature meets science. “
BudaPets’ line of products includes products from Calming, Hip and Joint, Omega Bites and Dental Chews. All BudaPets products are made with the highest quality CBD from hemp extract and natural ingredients to improve the quality of life for pets and farm animals. All BudaPets products are made and processed in the USA and are subject to strict manufacturing standards. In January 2020, BudaPets received NASC (National Animal Supplement Council) certification for its natural hemp-derived animal supplement product line, one of the highest certifications in the animal care industry.
As part of the acquisition, PureK acquired all of Nirvana’s issued and outstanding membership units, including the BudaPets brand. PureK has issued US $ 1.5 million unsecured convertible bonds with compound interest of 3.25% and a maturity date that is twenty-four (24) months after the closing date (the “Due date“). According to the terms of the convertible bond, the sellers have the option of converting part of the convertible bonds into ordinary shares of the company on a monthly basis (“Common stock“) At a price equal to or greater than (i) the 15-day volume-weighted average price of the common stock on the TSX Venture Exchange at the time of conversion; or (ii) $ 3.50. Some or all of the convertible bonds that have not been converted into common stock are payable in cash on the due date.
In addition, current Nirvana members are entitled to earn-out compensation of US $ 500,000 payable in common stock for fiscal 2021 sales of Nirvana products of US $ 1 million or more, plus an additional in Common stock payable for $ 1 million if sales of Nirvanas products exceed $ 2.5 million in fiscal 2022. The transactions are carried out on market terms and, apart from the issue of the unsecured convertible bonds mentioned above, no long-term debt is assumed. Completion of the acquisition is subject to customary closing conditions, including the approval of the TSX Venture Exchange.
About PureK Holdings Corp.
PureK Holdings Corp. leads an international omni-channel platform with diversified assets in the emerging categories of herbal and holistic wellness consumer goods. The company’s mission is focused on leading innovation for the informed Millennial and Generation Z generations in the fast growing herbal, natural and clean ingredients space. The company continues to focus on expanding into high-growth consumer product categories such as CBD products, plant-based foods and beverages, and the global pet care and skin care industries. For more information on PureK Holdings Corp. can be found at https://purekana.com/investor-relations/.
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Forward-looking statements and information
Certain statements contained in this press release constitute “forward-looking information” and “forward-looking statements” as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates made by management at the time the information is provided and are subject to certain factors and assumptions, including the fact that the company’s financial position and development plans will not change due to unforeseen events. Forward-looking statements and information are subject to a number of risks and uncertainties and other factors that could cause plans, estimates and actual results to differ materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this press release to change or be inaccurate include, but are not limited to, the risk that any of the assumptions made above will prove to be invalid or reliable, such as the above will materialize and result in delays or cessation of planned work, changes in the company’s financial position and development plans, and delays in regulatory approval, as well as the other risks and uncertainties that apply to the CBD industry and the company, as detailed in the filing statement of the Company in relation to its Qualifying Transaction filed under the Company’s profile at www.sedar.com. The company assumes no obligation to update the forward-looking statements and information unless required by law.
Neither the TSX Venture Exchange nor its regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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