CALABASAS, Calif., Aug. 25, 2020 (GLOBE NEWSWIRE) — Resonate Blends, Inc. (OTCQB:KOAN), a cannabis-based holding company (“Resonate” or “the Company”), today provides an update to shareholders on several topics relating to the advancement of the overall operations of Resonate, including the spin-out of Textmunication, settlement of notes and fundraising. A Letter to Shareholders from Resonate’s Chairman and CEO Geoff Selzer follows:
We are pleased to announce that we have completed the spin-out of our subsidiary Textmunication Inc. as an independently operating entity. This achieves our goal to turn Resonate Blends into a pure-play, publicly traded cannabis company. In conjunction with the spin-off, we reduced the Outstanding Share count of the company’s common stock by approximately 20%, supporting our intent to manage the capital structure of the company in support of current investors as well as provide the foundation to raise the most cost-effective capital for our operations. To that end, Boustead Securities has begun the process of raising the capital necessary to support the launch of our first branded products, which we are targeting for the fourth quarter of this year.
Highlights Since our Last Update:
- On July 20, Resonate completed the asset sale of Textmunication, Inc. (“Textmunication”). For the consideration of the sale, we received the cancellation of 4,822,029 shares from certain members of Textmunication.
- Our Outstanding Share count has been reduced from just over 26 million shares to 21.4 million shares. Share structure management has been a major focus and will allow us to attract more interest in investment in our business initiatives while effectively supporting shareholder value to current investors.
- We retired the $113,350 Geneva Roth Remark Note on July 21, 2020. Since October 2019, we have retired three convertible notes that would have been toxic to our share structure and replaced them with new funding centered on equity investment and improved promissory note terms. The Company will continue its strict discipline on share structure management to provide the best opportunity for shareholder value and increased market capitalization.
- We will soon announce new partners in the distribution and marketing areas of our company. These partnerships will guide us in our upcoming product launch.
As always, we are grateful for our shareholders’ support and patience as we continue the process toward focusing our operations on revenue generation. We expect to be in contact shortly to provide further updates and insight into our operational progress.
Stay safe, stay healthy.
This press release is not intended to and does not constitute an offer to sell nor a solicitation for an offer to purchase any securities of the company.
About Resonate Blends, Inc. (OTCQB:KOAN)
Based in Calabasas, California, Resonate Blends, Inc. is a cannabis holding company centered on valued-added holistic Wellness and Lifestyle brands. The company strategy is to ignite future growth by building a purpose-driven portfolio of research organizations, innovative and emerging brands, and retail channels. The holding company’s focus is finding mutual value between product and consumer by optimizing quality, supply chain resources and financial performance. The Company offers a family of premium cannabis-based products of consistent quality based on unique formations calibrated to Resonate Blends effects system, the industry gold standard in user experience.
For more information: www.resonateblends.com
Safe Harbor Provision:
Past performance is not indicative of future results. This is not an offer or solicitation to buy or sell securities. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of total loss. This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur. Potential risks and uncertainties include, but are not limited to, the risks described in Resonate Blends’ filings with the Securities and Exchange Commission. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and any document referred to in this press release.
Chief Investment Officer/Director
Resonate Blends, Inc.