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Isodiol International Inc. Announces Intent to Divest Kure Corp. as Part of Ongoing Efforts to Curb Shareholder Dilution
Isodiol International Inc. Announces Intent to Divest Kure Corp. as Part of Ongoing Efforts to Curb Shareholder Dilution.
About this update from Isodiol International Inc
[{"type":"text","content":"\nVANCOUVER, British Columbia, Jan. 30, 2019 (GLOBE NEWSWIRE) -- Isodiol International Inc. (CSE: ISOL) (OTCQB: ISOLF) (FSE: LB6B.F) (the “Company” or “Isodiol”) announced today that the Company has obtained conditional voting support from the holders of more than 75% of the former shareholders of Kure Corp. (“Kure”) to give effect to a plan of arrangement (the “Plan”) and divestiture of Kure by Isodiol. \n Under Division 5 of the British Columbia Business Corporations Act (the “BCBCA”), the Company proposes to enter into a plan of arrangement with the former shareholders of Kure (the “Creditors”). A Creditors’ meeting will be held after at least 21 days’ notice to the Creditors and upon approval of a majority in number and ¾ in value of the Creditors present or voting by proxy at the meeting the Company.  Thereafter, the Company will apply to the Supreme Court of British Columbia for approval of the Plan. Subject to any further orders from the Supreme Court of British Columbia, Isodiol will distribute all of the issued and outstanding shares of Kure (the “Kure Shares”) to the former Kure shareholders, and, in consideration for the Kure Shares, Isodiol will be absolved of its February 1, 2019 obligation to issue to the former Kure shareholders Isodiol shares having a value of US$25,000,000. Isodiol acquired 100% of the issued and outstanding shares of Kure from the Kure shareholders pursuant to a merger agreement, dated April 30, 2018 (the “Merger Agreement”).  The Merger Agreement required Isodiol to fund Kure with US$9,000,000 cash for expansions and operations, as well as to issue shares to the former Kure shareholders based on milestones having minimum payouts of up to US$35,000,000.  The first of those milestones obligated Isodiol to issue stock valued at US$25,000,000 as of December 31, 2018.  Mr. Agramont, CEO of Isodiol, said, “While we believe Kure has good prospects for revenue growth, the additional short-term cash cost of over US$7,000,000, plus up to US$35,000,000 of stock dilution to our shareholders is simply too great at this time.  Moreover, we believe similar capital commitments to the marketing and expansion of our in-house brands through existing retail chan...