Update Includes History and Future of Dividend Strategy
DALLAS, TX / ACCESSWIRE / November 4, 2016 / North American Cannabis Holdings, Inc. (OTC: USMJ) today announced an update on an expected Dividend Payment Date anticipated to be announced within the next thirty days.
North American Cannabis Holdings set Friday, October 21, 2016 as a Shareholder of Record Date for a dividend of stock in Puration, Inc. (PURA) to be issued to shareholders. The Record Date was appropriately registered as required with regulatory authorities. Shareholders as of close of business on Friday, October 21, 2016 are eligible to receive shares in PURA.
Within the electronic stock trading systems of the United States, a trade generally takes three days to settle - for the buyer to be registered as the new owner of the purchased stock. Accordingly, Wednesday, October 26, 2016 was the day the purchases or USMJ stock on Friday, October 21, 2016 settled, and that USMJ had access to a list of shareholders eligible to receive PURA stock. USMJ plans to issue 1 share of PURA stock to USMJ shareholder for every 200 shares of USMJ stock owned as of last Friday.
The Dividend Payment Date is anticipated to be announced within the next thirty days. USMJ is currently working with regulatory oversight authorities to finalize necessary details to execute the issuance of PURA stock to USMJ shareholders. Subject to satisfying all regulatory pre-requisites, USMJ shareholders that acquired stock on or before the Record date will receive stock in PURA based on the yet to be set Payment Date. Again, allowing for USMJ stock ownership to 'settle,' USMJ shareholders eligible to receive PURA stock on the Payment Date will be determined three days after the Payment Date.
In an attempt to address any confusion regarding Record Date, Ex-Dividend Date and Payment Date, find below a segment from the SEC website regarding frequent questions about dividends:
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
History and Future of USMJ Dividends
USMJ entered the cannabis sector in 2013 with a strategy to pilot various cannabis sector enterprises. The Company planned to facilitate the financing necessary to expand successful pilot projects by spinning graduating projects off into standalone public companies. The first spinoff was executed last year when Puration, Inc. (PURA) acquired graduating pilot project assets from USMJ in exchange for PURA preferred stock. A portion of the PURA preferred stock was designated for conversion into common stock and issuance to USMJ shareholders.
Puration is a model for the future of North American Cannabis Holdings with future PURA-like spinoffs and dividends to come. A second spinoff is in the works now. Learn More:
Review USMJ's recent CEO update published earlier this week to learn more about the Company's strategy going forward and performance to cate having recently reporting 23% annual revenue growth
North American Cannabis Holdings, Inc. CEO Update
To learn more about North American Cannabis Holdings: www.growusmj.com
Follow the Company on Twitter: twitter.com/US_HEMP
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
USMJ Contact:
Steven Rash
Phone: +1-972-528-0162
SOURCE: North American Cannabis Holdings, Inc.