Business
PERVASIP TO ACQUIRE ARTIZEN CORPORATION
PERVASIP TO ACQUIRE ARTIZEN CORPORATION.
About this update from Pervasip Corp.
[{"type":"text","content":"Pervasip Corp. (OTC: PVSP) (the “Company”), a developer of companies and technologies in high value emerging markets, announced today the execution of a letter of intent (“LOI”) with Artizen Asset Management LLC (“AAM”) to acquire 100% of the stock of Artizen Corporation (“Artizen”), the parent of Zen Asset Management LLC (“ZAM”), a diversified asset management company that was founded to acquire, develop, and support companies and technologies in the cannabis industry.ZAM manages four licensed cultivation facilities and one licensed processing facility in Washington state under a series of management, leasing, licensing and other long-term agreements. As one of Washington’s original cannabis brands, Artizen-branded products are the all-time fourth best-selling in Washington across all product categories, and the all-time third in flower, with five of the all-time top ten selling products in flower. Eighths of Artizen’s flagship Dutchberry™ flower are the all-time top selling flower product in Washington. Artizen’s commitment to quality and consistency has built a substantial following, fueling more than $69 million in wholesale sales to a distribution network with more than 200 retailers, corresponding to more than $200 million in retail value since inception in 2015.“The Artizen brand is recognized as one of the most reputable leading consumer brands in Washington state, with tremendous consumer and retailer recognition,” said Paul Riss, the Company’s chief executive officer. “We believe that ZAM’s results in Washington are scalable with the right investment and management, and we are very excited by the potential that this acquisition brings to our shareholders.”Sales of Artizen-branded products have grown by more than 25% during the three years ended December 31, 2020, to more than $17 million in 2020. While that growth was historically driven by the continuing strong demand for Artizen-branded products, that demand significantly exceeds supplies. Additional growth is constrained by the availability of financing to invest in ZAM’s infrastructure and help its customers to increase utilization, sales, and earnings.“We expect that this transaction will allow us to resolve that challenge to dramatically improve on our existing foundation,” said Timothy Foia, Artizen’s founder and chairman. “Our first objective is to raise and us...