DALLAS, Dec. 18, 2018 (GLOBE NEWSWIRE) — via OTC PR WIRE — Kali, Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) (“KALY”) today announced posting all filings required by OTCMarkets under its OTC Pink – Current Information Tier standards. On November 15th, the company announced the acquisition of NCM Biotech in a transaction that changed the business direction of the company. Prior to that acquisition, the company’s previous business focus on marina management had languished. In addition to the marina management business not advancing as originally planned, the company had fallen behind in the timely filing of the disclosures required by OTCMarkets. The company has now caught up on all its past due filing requirements. However, the information posted on OTCMarkets to meet the OTC Pink Current Information standard does not include much information on the current business. Accordingly, management has engaged Goldman Small Cap Research to initiative coverage of KALY’s new assets and business direction. The purpose of this report is to provide shareholders and interested investors more comprehensive information on the company’s current operations in a single location. The report will be filed on the OTCMarkets site. It will include detailed asset and business descriptions, operational financial analysis, comparisons to similar businesses, market forecasts and KALY specific forecasts. The report will not at this time include an investment recommendation or share price target. The purpose of the report is to enhance the OTCMarkets’ required disclosures by providing information on the current operations in addition to the OTCMarkets reports on historical operations.
On December 14th, 2018, KALY released a Letter to Shareholders reconfirming recent acquisition, contract and partnership announcements. The letter was issued in response to an OTCMarkets investor precaution published the previous day. Management has talked with an OTCMarkets representative who expressed concern regarding the recent increase in KALY news and a corresponding increase in trading volume. KALY management contends the news and trading volume increase are simply a factor of the company’s recent acquisition of NCM Biotech and the corresponding business direction change. In addition to efforts such as the updated OTCMarkets filings, the Friday Shareholder Letter and the Analyst Research Coverage engagement, all intended to enhance transparency, KALY management will diligently endeavor to explore, understand and resolve the OTCMarkets concerns that resulted in their issuance of the Caveat Emptor investor precautionary flag.
The Friday Shareholder Letter has been included again below in its entirety in an ongoing initiative to enhance transparency particularly in the instance of recent business updates.
From Current CEO Charles Yawn With Introduction Of Incoming CEO Frederick Ferri
Dear Shareholders and Interested Investors:
I am encouraged by the caliber of KALY’s recent acquisition and enthusiastic about the new business direction. I love boating and marinas and I’m disappointed that our marina management business did not flourish as anticipated. However, I believe the rapidly evolving legal cannabis sector is a marketplace rich with opportunity and that KALY’s recent acquisition will be much more than a mere consolation prize for shareholders. I am pleased to introduce the incoming CEO, Frederick Ferri, the founder of NCM Biotech and the individual behind the patented cannabis extraction technology that is now a KALY asset as a result of the acquisition of NCM Biotech announced on November 15th, just less than one month ago:
I am staying with KALY as the Chairman while Mr. Ferri assumes the CEO position to lead the new cannabis extraction business operations. My ongoing role is to support Mr. Ferri with my pubic company management experience permitting Mr. Ferri to concentrate on the operational development of his cannabis extraction business plan.
Mr. Ferri is moving fast in the execution of his business plan. He has fostered a business relationship that he brought with his company NCM Biotech, that KALY acquired. NCM Biotech had licensed its patented extraction process to Puration, Inc. (PURA) for the production of a CBD infused beverage called EVERx. Now KALY is working with PURA to produce new CBD infused beverages. PURA has engaged KALY to make custom hemp-derived CBD extracts for a private label CBD infused water that PURA will produce for a client pharmaceutical company:
KALY has also entered a joint venture (JV) agreement with Puration and two additional partners to develop partnerships with pharmaceutical companies for the ultimate purpose of developing cannabis based pharmaceutical products:
The JV has already entered into its first agreement with a pharmaceutical client company. The client company is the same company for which PURA and KALY are producing a private label CBD infused water. KALY is already preparing to file for additional patents in conjunction with existing research it has conducted with its current patented extraction process. The additional patent filings are intended to support the JV’s objectives:
Puration and Kali Plan to Submit New Patent Applications in Conjunction with Generex Agreement
In an effort to develop sustainable near-term revenue, KALY has initiated an effort to produce its own line of CBD candies and vapes targeting the wellness market:
KALY has come a long way in the last month since the acquisition of NCM Biotech. We where already behind on our disclosures with OTCMarkets with the languishing of our marina management business. All the progress in the last month without rectifying previous delinquencies, can only exacerbate OTCMarkets concerns on behalf of investors.
We plan to have the past-due filings updated promptly. The filings are already prepared to be filed. I confess that part of the current delinquency was due to being behind on our OTCMarket bills. I am happy to say we are now current on payments to OTCMarkets and expect to begin updating filings today.
To supplement the precautionary warnings issued by OTCMarkets, I want to conclude by pointing out that even when KALY finishes updating all its past-due filings, which we expect to do by no later than close of business on Monday, all those filings will only include information on the languishing marina business. The updated filings will include very little information on the new cannabis extraction business. The new business information will be a topic of future filings with OTCMarkets. In the meantime, it will be important for investors to look for supplemental sources of information. For instance, from KALY press releases and from the new KALY website – www.kali-extracts.com.
In an effort to provide further information on KALY’s new business, we have engaged an independent analyst to compose a research report on the company. Yes, we are paying for the research and the conclusions of the analyst are subject to the scrutiny that KALY management may have influenced the analyst’s conclusions. I will tell you that is not the case. We will not interfere with the analyst’s independent analysis. You can decide whether or not to believe me. In any case, the analyst’s report will include a detailed description of the company’s assets, contracts and developments that will provide investors consolidated information on the company that is likely not available in a single source anywhere else. We will post the analyst report on the company’s website. We expect to have it by the end of next week.
Thank you for your time, interest and attention.
CEO and Chairman
For more information visit: www.kali-extracts.com
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.