Pervasip Converts $15M Debt, Moves Toward Profitability With Cannabis Spin-Off

Pervasip Corp. PVSP is restructuring its cannabis operations to convert about $15 million in debt into 15% of a newly formed subsidiary.

What Happened: The move represents a preliminary step in the company’s plan to separate the new subsidiary into an independent public entity, listed on the OTCQB market.

It is designed to streamline operations and strengthen the company's financial footing. A key aspect of the restructuring is converting over 80% of Pervasip’s debt into equity in the new cannabis-focused entity.

The Seattle, Washington-based company also announced a strategic transition away from non-productive assets, focusing exclusively on higher-margin branded product sales in all of its operating markets.

This move is expected to result in enhanced profitability and efficiency, aligning with Pervasip's long-term growth objectives.

See Also: Pervasip Announces Artizen Spin-Off

Why It Matters: The company said these changes would allow the market to assess its performance based on profitability.

The restructuring is also expected to reduce the company’s debt-to-equity ratios, thereby strengthening our balance sheet and overall financial health.

"Restructuring our operations and focusing on high-margin, branded product sales will not only streamline our business but also enhance shareholder value,” German Burtscher, the company's CEO and president, said. “The long-announced spin-out of our cannabis assets marks a pivotal step in our strategy to become a more focused, profitable company."

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