Pervasip Corp (OTCMKTS:PVSP) has announced that it has acquired 100% stake in Plaid Canary Corporation. The company has stated that the decision was taken to shift Pervasip’s focus on emerging markets. Plaid Canary focuses on the development, acquisition and support of emerging technologies in the agricultural industry. The acquisition would proceed on a one-to-one basis. This means that every single outstanding share of the company before the merger, would be changed with a single stock of Canary.
Interestingly, Plaid Canary would be the surviving company in this merger, which seems like a sensible decision after the poor financial performance of PVSP. Additionally, the share structure of Canary would be the one to be used as well. Furthermore, Canary corp. is also a stake holder in a variety of companies, like Grow Big Supply.
Paul Riss, the CEO of PVSP, expressed his excitement at the acquisition and hoped that the move would prove to be beneficial in the long-run. He identified Grow Big as the target company, through which PVSP hopes to generate huge profits and establish a revenue stream. It is important to note here that Grow Big has grown to produce more than $5 million in annual sales. Additionally, as per the initial reports PVSP is also looking towards a number of other acquisitions to expand its portfolio and its market diversity.
Unfortunately, as per the company’s latest filing it is in a poor financial state and does not have any cash to proceed with the acquisition of Canary, unless of course it is looking towards dilution. The 1Q2015 for PVSP revealed that the company has just $2,623 in cash, $219,788 in assets and quarterly revenues of just $894. However, the liabilities of the company stood at $12,177,301, resulting in a net loss of $1,989,982. Seeing the figures, the company would either need long-term convertible debt or would have to choose dilution if it wants to proceed as planned.
Pervasip Corp (OTCMKTS:PVSP) traded 171.18 million shares during the June 8 session to reach a closing price of $0.0015, reporting a decline of 25%.