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PotNetwork Holdings, Inc. Moves Forward with Corporate Actions

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Company Undertakes Reverse Split, Reduction in Authorized Common Stock, Rights Offering and Registration of Shares

FT. LAUDERDALE, FL / ACCESSWIRE / December 10, 2020 / PotNetwork Holdings, Inc. (OTC PINK:POTN) ("the Company") announced today that following the twenty (20) day waiting period from November 20, 2020, the date of mailing of its Information Statement regarding pending corporate actions, to December 10, 2020, the Company is now able to move forward with the corporate actions announced:

  1. A "Reverse Split" of our common stock in a ratio of 10:1 - fractional shares rounded up to the next whole share, which "Reverse Split", as of this date, has already been submitted to the Financial Regulatory Authority ("FINRA") and is subject to their review, processing and approval - it requires no individual shareholder action;
  2. A simultaneous decrease in authorized common stock down to 750,000,000 - to be filed in the State of incorporation, Colorado, upon the effective date of the Reverse Split;
  3. A "Rights Offering" of "registered" shares for shareholders of record of November 25, 2020, entitling each to purchase shares of common stock directly from the Company at a price per share to be announced by the Board of Directors after the Reverse Split occurs. Shares under the Rights Offering are to be offered pursuant to a registration statement to be filed with the Securities and Exchange Commission ("SEC") for up to 200,000,000 shares. The registration statement, on SEC form S-1, will be filed following the Reverse Split.

As previously stated, the primary purpose and intent of the Rights Offering is to raise funds to increase investible assets, allowing the Company to take advantage of opportunities to grow, including the expansion of our product line and the acquisition of other companies in our industry or related markets.

If you are a shareholder and have not received a copy of the Information Statement either by mail or email access to it, please contact the Company at: corporateactions@potnetworkholding.com.

Rights Offering

As cited in the Information Statement, shareholders as of a Record Date of November 25, 2020, will have the right to purchase 10,000 shares of the Company's post-split common stock for every 100 shares held on that date. The minimum purchase quantity per shareholder will be 10,000 shares. Any shareholders owning less than 100 shares will be entitled to purchase not less than the minimum quantity of shares. The subscription price per share shall be set by the Board of Directors to be announced in the coming weeks.

The subscription period for the Rights Offering will begin promptly following the Effective Date of the Registration Statement (as determined by the SEC), and continue for a minimum of 90-days. During the subscription period, shareholders may subscribe for the shares directly from the Company via the Prospectus and subscription agreement which will be separately sent to shareholders by mail or email. Shareholders who wish to participate in the Rights Offering will need to complete the Rights Offering's subscription agreement, and send it back to the Company, together with payment in full for the shares.

Additional Information

Periodic updates and other announcements pertaining to the Rights Offering will be announced via public media. Shareholders should watch for subsequent announcements in the coming weeks.

This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

PotNetwork Holdings, Inc. (OTC Pink: POTN), a publicly traded SEC reporting company, is a holding company for its principal subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD products, and PotNetwork Media Group, Inc., the publisher of PotNetwork News.

Diamond CBD, our primary operating subsidiary, focuses on the development, and marketing of premium hemp extracts containing a broad, CBD isolate and full spectrum CBD oil of natural hemp derivatives. Diamond CBD's team includes hemp industry pioneers and experts dedicated to producing the purest and most effective cannabidiol (CBD) containing products. The result is a robust selection including powerful natural CBD oil, tinctures, smokeables, CBD edibles, and other CBD-containing products including CBD creams, health and beauty items as well as CBD pet products. For more information, please visit our website at www.DiamondCBD.com.

Safe Harbor: Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

POTN1-800-915-3060
investor@PotNetworkHolding.com

SOURCE: PotNetwork Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/620421/PotNetwork-Holdings-Inc-Moves-Forward-with-Corporate-Actions

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