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DALLAS, TX / ACCESSWIRE / January 24, 2018 / North American Cannabis Holdings, Inc. (OTC PINK: USMJ) and Puration, Inc. (OTC PINK: PURA) today announced an update to the “frequently asked questions” (FAQ) section of the companies’ combined website. The update is released in conjunction with Vermont yesterday passing a new cannabis legalization law becoming the 9th state to legalize adult use.

“North American Cannabis Holdings cut its teeth in the cannabis business in Vermont,” said Steven Rash, company CEO. “In 2014, we grew the largest legal hemp crop in the State. Our farmer was interviewed by National Public Radio, NPR. We learned a lot in Vermont and hope our efforts may have contributed to the movement that culminated in yesterday’s legalization milestone. We continue to learn, evolve and expand our business in this sector and today we’re taking a moment to address questions and comments we’ve received about our latest progress in an update to the FAQ section of our website.”

The update can be found on the company’s website and in the narrative below:

Last year the majority interest of North American Cannabis Holdings (“USMJ”) and Puration (“PURA”) were reorganized under American Cannabis Innovations Conglomerated (“ACI”). A new website was launched with information about both USMJ and PURA. The new website included an FAQ section to address questions about the reorganization and the two companies’ overall business strategy. The original FAQ responses remain on the website with some new updates added to the old responses. Some new FAQ responses have been added.

The cannabis sector is rich with promising entrepreneurial endeavors. The dotcom market of the nineties was similarly rich with promising entrepreneurial technology endeavors. The major difference between the cannabis and dotcom sectors is the availability of follow-on investment. Seed capital to fund concepts comes largely from the entrepreneurs themselves and their friends and family. Worthy concepts then have access to follow-on venture and mezzanine investments. However, the interim state of nationwide legalization throws a wrench into the availability of follow-on investment for worthy cannabis concept enterprises.

A growing number of entrepreneurial endeavors are dealing with the shortage of follow-on investment by taking their enterprises into the micro-cap public market to fund growth with investments structured around publicly traded stock. This comes with some pluses and minuses. On the plus side, enterprise agnostic capital is available for companies with penny and sub-penny priced share prices. Criteria for a direct investment in a micro-cap public company is less about the operational prospects of a company and more about trading history and potential. The minuses include increased government regulatory scrutiny for enterprises the government finds objectionable.

A core component of the business development strategy behind USMJ and PURA is to diversify operations into related, but separate business entities. For instance, the patented cannabis extraction operation in PURA was originally under USMJ. Today, USMJ and PURA work together, but each can pursue investments and deliver shareholder returns through independent listings. By positioning discrete operations within separate business entities, we optimize access to the limited availability of follow-on capital within the micro-cap public investment arena. We also mitigate the risk of a possible weakness within in one function negatively impacting the viability of a separate function.

In a similar fashion, we plan to further diversify operations into independent listings and we now have new tools available that we think will improve the spinoff process to diversifying into independent listings. While the PURA spinoff was executed through the sale of the extraction operation to another micro-cap public company that included a dividend issue of PURA stock to USMJ shareholders, we now plan to take advantage of the new Regulation Crowdfunding tools to diversify operations. USMJ shareholders had to wait a year after the spinoff for the PURA dividend shares to be eligible for free trading under existing rules for exemption from registration (see FAQ UPDATE: “I HAVE PURATION STOCK ISSUED TO ME IN A DIVIDEND…”). Our future direction entails registering separated operations under the new Regulation Crowdfunding rules and shortening the timeframe until spinoff shares are eligible for trading.

As we look at new spinoff opportunities, our selection criteria are centered on facilitating our pursuit of the largest cannabis market opportunities. USMJ and PURA are working together and with other third parties to position shareholders to benefit from the large legal recreational market opportunities in Canada and California. There is nothing new to share here in FAQ at this time other than a confirmation of our Canada and California strategies and the information that is available in recent press releases, on the website, and in public disclosures. Management is enthusiastic about the Canada and California opportunities and encouraged by the business development progress to date.

For further updates, see the updated information in original FAQ entries (on the company website).

For more information on North American Cannabis Holdings and Puration, visit:

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.

For More Information, Contact:

Steven Rash


SOURCE: North American Cannabis Holdings, Inc.

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