Introducing a new initiative to build shareholder value, Pure Hospitality Solution, Inc. (OTCMKTS:PNOW), the creator of Oveedia and the Numismatic Specialty Store, Meso Numismatics, announced that the company will award shareholders with a preferred stock dividend that boast some rather incredible protective covenants and features.
On March 30th, 2017, The Company filed with the Secretary of the State of Nevada, the Company’s Certificate of Designation, which finalizes the creation of the new Series BB Preferred Stock to be used for the dividend.
The new Series BB Preferred Stock will be used to accomplish a few goals. First, they will be used to complete the cancelling and settlement of most remaining debts. Second, they will be used to further reduce debt liabilities to keep stock dilution low. Lastly and most importantly, they will be used to provide a stock divdend to shareholders to protect current and future value of their holdings.
Shareholders will receive a preferred stock dividend that cannot be diluted and therefore protected, against the issuance of any new capital stock, commonly referred to as dilution. In addition, shareholders of the preferred stock dividend cannot be reversed or be affected by any type of capital stock restructuring, or in other words; they are non-reversible and not affected by a common stock reverse.
Shareholders will be protected by restrictive covenants, which essentially guarantees that all the features and protections provided under the Series BB Preferred Stock, will never be amended. Pure Hospitality Solutions, Inc. (OTCMKTS:PNOW), in the official press release dated March 27th, 2017, explained the features of the Series BB Preferred Stock dividend. The plan was formalized on March 28th, 2017, when Pure Hospitality Solutions (OTCMKTS: PNOW), announced the Company had effectuated the certificate of designation, officially creating the series BB preferred stock to be used for the dividend.
As stated in the press release, “Management intends to aggressively follow-up with this effort by filing the necessary paperwork with the State of Nevada by March 30th; officially creating the new class of stock – the series BB Preferred Shares.” In the usual style of Melvin Pereira, the company’s CEO, this action was completed ahead of schedule [March 29, 2017].
The holding requirements that ensure shareholder participation in the dividend are expected to be release early next week with the announcement of the ‘X-Dividend Date’ (the time frame in which investors must secure their minimum holdings to receive the preferred stock dividend) to follow thereafter.
It is far from normal for an alternative reporting company to go through the trouble of structuring such a sophisticated stock dividend. However, given that management has spent the last 14 months repurchasing toxic debt in an effort to generate shareholder value, it comes as no surprise.