Pervasip Announces Artizen Spin Off

Pervasip Corp. PVSP will spin-off 100% of its wholly-owned subsidiary, Artizen Corporation, as a separate public company, with an anticipated record date between July 1, 2023, and September 30, 2023. As a result of the spin-off, all Pervasip shareholders of record as of the designated record date shall receive shares in the newly public Artizen in proportion to their ownership in Pervasip. Artizen conducts 100% of Pervasip’s cannabis business segment operations through its Zen Asset Management LLC subsidiary.

The regulatory environment in Washington prevents vertical integration into retail assets. Zen’s independent cultivators cannot acquire dispensary assets to internalize retail revenues that are typically about three times wholesale receipts. Artizen could be generating about three times its current revenues, or about $46 to $52 million, if Zen’s existing footprint was in another state. Thus, diversification has been and remains a key strategic focus.

Pervasip currently has about 5 billion shares of common stock issued and outstanding, corresponding to about 15% of Pervasip’s fully diluted issued and outstanding common stock. Pervasip additionally has 850,000 shares of series K convertible preferred stock issued and outstanding, corresponding to 85% of Pervasip’s fully diluted issued and outstanding common stock, as well as various other convertible securities.

Holders of Pervasip’s issued and outstanding common shares as of the record date will receive an aggregate of 15 million shares of Artizen common stock, corresponding to 15% of Artizen’s fully diluted issued and outstanding common shares upon completion of the transaction. Likewise, holders of Pervasip’s series K and other convertible securities will receive an aggregate of 85 million shares of Artizen common stock, the vast majority of which will be subject to lock-up restrictions prohibiting sales prior to Artizen’s realization of material growth and other performance objectives. Artizen will have 100 million common shares outstanding on a fully diluted basis upon completion of the transaction, with no convertible debt or other securities.

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Photo by Esteban Lopez on Unsplash

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