Business
Resonate Blends, Inc. Provides Shareholder Update
Resonate Blends, Inc. Provides Shareholder Update.
About this update from Resonate Blends Inc.
[{"type":"text","content":"\nResonate Blends, Inc. (OTCQB:KOAN), a cannabis-based holding company (“Resonate” or “the Company”), announced today an update to shareholders on the filing of its Information Statement on Schedule 14C with the Securities and Exchange Commission regarding the spin-out of Textmunication, Inc. from the holding company and its execution of several key business initiatives.\n\n\nDear Shareholders,\n\n\nOn May 27, Resonate completed the filing of its Information Statement on Schedule 14C to officially start the spin-out process of Textmunication, Inc. (“Textmunication”). During the closing of the Company’s acquisitions of Resonate Blends, LLC and Entourage Labs, LLC, the Company made its intention known to be a pure play cannabis holding company. Over the last several months, the Company has been taking methodical steps to restructure the Company to reach that goal. The Company has raised outside capital, retired debt that was not consistent with the long term strategic requirements of the Company, negotiated and has now executed the spin-out of Textmunication, the texting operating subsidiary of the Company, and hired CORE IR and Boustead Securities to work with us on the long term financial requirements of the Company.\n\n\nTo determine an open and fair price for the spin-out, the Company commissioned a Pricing Analysis on the sale of the Textmunication entity and determined that the consideration for the sale of Textmunication shall consist of the cancellation by certain shareholders of the Company, including Wais Asefi, the Company’s former officer and director, of 4,822,029 shares of the Company’s common stock (the “Cancelled Shares”). Once the sale is completed, the Cancelled Shares will be returned to treasury, reducing the Company’s outstanding share count. Wais Asefi will remain as officer and director of Textmunication and the shareholders cancelling their shares shall own the business and it will no longer be affiliated with the Company. The Company would like to thank Mr. Asefi for his service to the Company and wish him the best going forward.\n\n\nWhile this restructuring of the Company has been underway, the Company has assembled a world class team that has been hard at work preparing the way for the introduction of the Company’s new brands....