Business
Pervasip Releases Shareholder Letter
Pervasip Releases Shareholder Letter.
About this update from Pervasip Corp.
[{"type":"text","content":"\n SEATTLE, March 02, 2023 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” and the “Company”) today announced that its President and Chief Executive Officer, German Burtscher, issued the following letter to Pervasip’s shareholders. Dear Shareholders: During 2022, despite challenging market conditions, economic pressures, and political uncertainty, Pervasip’s Artizen subsidiary achieved several significant accomplishments, including rationalizing its business, reducing costs, adding to its executive team, expanding its premium brand collection, and identifying actionable growth opportunities for licensed wholesale and retail operations in Washington and several other states to establish Artizen as a vertically integrated multi-state operator (“MSO”). Diversification by exploiting those opportunities and replicating Artizen’s existing foundation and proven formula in additional markets is a key strategic focus moving-forward, especially given the favorable valuation dynamics of MSOs and anticipated future legalization – moving from a one state to a multi-state footprint yields higher valuation multiples. Funding those efforts with sufficient long-term financing on accretive terms for Pervasip’s shareholders has eluded us despite our best efforts since Pervasip acquired Artizen in September 2021. Pervasip’s liquidity and share price were much higher at the time, and the combination enabled us to structure an initial $3 million preferred equity financing on fixed price conversion terms that included cash redemption features to minimize dilution. However, that financing was unfortunately frustrated by counter-intuitive reductions in Pervasip’s liquidity and share price after the Artizen closing. We were subsequently able to complete $2 million in non-dilutive financing during 2022 as we kept new common stock dilution to less than 10% of Pervasip’s outstanding common shares, but the Artizen business needed a significant permanent equity infusion to kick growth into overdrive. That equity infusion is still needed, and timing is very important. The valuations and fates of MSOs and other participants in the cannabis industry have vacillated in several waves since state legalization commenced. We believe that increased legalization is inevitab...