PotNetwork Holdings Inc. announced today that as part of the Company's reorganization of the corporate structure, and in preparation for future growth, the Company has effectuated a 1 for 1000 reverse stock split. The Company's common shares have commenced trading on a split adjusted basis, as of the opening of the markets on March 21, 2016.
The reverse stock split will consolidate every 1000 shares of common stock into 1 share of common stock. In respect to the underlying common shares associated with any derivative securities, such as warrants, options and convertible notes, the conversion and exercise prices and number of common shares issued will be adjusted in accordance to the 1:1000 ratio. As a result of the reverse stock split, the number of the Company's common shares outstanding will now be reduced to 70,474,010 after the conversion of all preferred shares, yielding a public float of 8,381,650 shares.
As of March 21, 2016, to inform the market of the reverse split, the ticker symbol for the Common Stock has been modified to "POTND" for a period of 20 business days, after which the "D" will be removed and the Company's ticker symbol, of "POTN," will take effect.
PotNetwork Inc. has been sold to Online Media Group Inc. of Santa Monica, California, a Company originated by David Bernard, founder and previous Chief Executive Officer of Equities.com, an advanced financial data portal and social network designed to connect self-directed investors with the world's most innovative startup and small cap companies.
This entity, like PotNetwork, Inc., was purchased in its early stages, and brought to great success through the experience and wisdom of those now taking PotNetwork.com under their wing. This transaction was structured so that PotNetwork Holdings Inc. continues to retain an interest in the entity. As a result, PotNetwork Holdings Inc. will apply with FINRA for a name and symbol change, reflecting this shift in corporate direction, sharpening its focus on the growth of the Company's duplicable core revenue producing business.
Gary Blum, CEO, stated, "Although we believe that the cannabis industry has a promising future, we have decided that the real immediate growth potential for our Company is where we have discovered the tangible ability to generate substantial revenues. We believe that in consideration of our established pattern of success, Sunrise Auto Mall Inc. has tremendous potential for growth, particularly in the business model's potential to be duplicated nationwide. We remain committed to our success and look forward with great anticipation to what the future holds for our Company and its Shareholders, as we move forward and focus on expanding the revenue generating sector of our business."
Mr. Blum continued: "For the purpose of establishing the ability to put the Company on a path toward long-term sustainability, we believe that this is the best course of action. The changes in stock structure should resolve concerns about future dilution caused by our present share structure, and position us for serious future growth through potential mergers, acquisition, roll-ups and/or spin offs. These actions are meant to signal to the market that we fully intend to build our market cap over time; not by diluting with the continual issuance of more shares, but by increasing the value of each individual share of stock." He added, "Sunrise Auto Mall Inc. is a rapidly growing, dynamic company that we believe will drive up the value of the market cap through solid performance."
Upon the sale of PotNetwork Inc., Richard P. Volpe has resigned as CEO, and holds no further affiliation with PotNetwork Holdings Inc.
About PotNetwork Holding Inc: PotNetwork Holding Inc. (OTC Pink: POTN) is a publicly traded company that acts as a holding company for its subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD oils, and Sunrise Auto Mall, Inc.
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