KALY - KALY- Kali-Extracts Anticipates Gross Margin Increase from Cannabis Biopharmaceutical Technology Consolidation
DALLAS, Jan. 27, 2020 /PRNewswire/ -- Kali-Extracts, Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) ("KALY") today announced an anticipated increase in gross margins from the consolidation of its business structure and focus on its Cannabis Biopharmaceutical Technology. KALY has a U.S. Patented Cannabis Extraction Process and is developing treatments for various medical conditions. The technology has been valued at $50 million in conjunction with a recent acquisition offer that KALY management passed on. The consolidation strategy includes plans to spin off its agricultural CBD extractions business and CBD confections business. KALY has entered into discussions with Puration, Inc. (USOTC: PURA) ("PURA") regarding PURA's possible acquisition of KALY's CBD confection assets. KALY has also announced entering negotiations with a third-party regarding the spinoff of the agricultural CBD extraction business. The third-party is not yet disclosed, but the party is a public company and a term sheet agreement is anticipated within the next two weeks. The two spinoffs include plans for KALY to receive royalties from the ongoing extraction and confections business operations as part of the consideration for the assets. The royalty revenue as designed in the spinoff structure would be a higher gross margin revenue than the current operating revenue.
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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.
CONTACT:
Frederick Ferri
ir@kali-extracts.com
+1(214)210-0459
SOURCE Kali-Extracts, Inc.