Pervasip Corp (PINK: PVSP) is undergoing strategic restructuring in its cannabis operations, marking a significant shift in its business model. With a focus on enhancing shareholder value, the company has issued PCAOB audited financial statements for fiscal 2022 and its CPA firm is now working on the audit for fiscal 2023.
This restructuring demonstrates Pervasip's commitment to strengthening its financial position and streamlining operations. It plans to jettison over 80% of its debt by engineering a spinoff into a new cannabis-focused entity, without diluting the public shareholders. The current management team is giving up ownership interest in the spinout pubco to create more value for the public shareholder and reduce debt-to-equity ratios, thereby fortifying its balance sheet and improving overall financial health.
Furthermore, Pervasip is transitioning away from non-productive assets, redirecting its efforts towards higher-margin branded product sales in all operating markets. This strategic realignment is expected to enhance profitability and efficiency, aligning with the company's long-term growth objectives.
The impending spin-out of its cannabis assets into a standalone public entity on the OTCQB market signifies a pivotal step in Pervasip's journey towards becoming a more focused and profitable enterprise. German Burtscher, CEO/President of Pervasip, has expressed optimism about the company's future, emphasizing the transformative nature of the restructuring. With a commitment to transparency, Pervasip is dedicated to providing updates as it progresses through this strategic transition.
In summary, Pervasip Corp's strategic restructuring positions it for sustainable growth and profitability in high-value emerging markets, particularly in the cannabis sector. These developments indicate promising opportunities for the company. Most of the biomass produced by the company’s VIE’s has been sold historically under the Artizen™ brand, including all-time top selling products in flower in Washington state. PVSP owns 100% of Artizen Corp. Artizen Corp's wholly owned subsidiary, Zen Asset Management LLC ("ZAM") was founded to acquire, develop, and support companies and technologies in the cannabis industry. Artizen Corp owns several successful cannabis brands, licensed to independent cultivators in recreational markets. Artizen™ is the 9th largest cannabis consumer brand in North America according to MJBiz Magazine, November 2021.
Pervasip Corp. is traded on the OTC under the ticker symbol PVSP. This is not investment advice. Please view the disclaimer found on this website. The author owns common stock in PVSP and was not compensated for this article.
