PVSP Pervasip Corp (PK)

WHITE PLAINS, N.Y., August 20, 2015 – Paul Riss, chief executive officer of Pervasip Corp. (USOTC: PVSP) (“Pervasip” or the “Company”), issued the following letter today to the shareholders of Pervasip:

Dear Shareholders:

I am pleased to provide this update. As previously reported, we’ve been executing our plans to improve our balance sheet and capital structure to meet the anticipated financial and other requirements of potential new investors, joint venture partners, licensors and acquisition targets.

This remains an exciting and dynamic time for us. Our first objective is to build shareholder value, and to do so in ways that are accretive to all of our collective share holdings. Your interests are important to us. However, they are also important and transparent to prospective new shareholders – especially, for example, acquisition targets and their various stakeholders during due diligence and negotiations. We believe that consistent shareholder communication is important, however, restraint for limited durations may be required or appropriate from time to time as we respond to opportunities to build value. We appreciate your continued patience and discretion as we do so.

We have much to report and have a plan to do so, but will focus today on our restructuring progress and objectives. We have successfully eliminated $2,065,614 of $8,265,793 in debt during 2015 as a result of our debt restructuring plans. The remainder includes $4,884,559 in debt that is subject to agreements calling for full satisfaction and elimination in exchange for cash payments totaling $170,000. We accordingly expect that debt to be eliminated before year end. An additional $1,212,326, for a total of $8,162,499 of the $8,265,793 in debt at the start of 2015 – or 99% of the starting balance, is expected to be eliminated or converted into restricted equity before year end.

We are taking steps to improve our share structure, including the elimination of all classes of preferred stock except for the new class of preferred (Series H) used to complete our recent acquisitions, and we already eliminated one billion shares of common stock issued to FLUX Carbon Corporation (“FCC”). We have also finalized terms and are currently working on debt restructuring, investment, joint venture, license and acquisition agreements for transactions that we expect will involve issuance of approximately 20% of our share ownership in the form of restricted Series H shares. Once finalized, and when taken with previously issued restricted Series H shares, those agreements will correspond to about 80% of our share structure in the form of restricted Series H stock and 20% in the form of common stock (all of which shares are in the public float). Significantly, FCC has agreed to continue to reduce its ownership to offset the dilutive impact of any and all debt conversions that occur moving forward until all existing convertible debt is satisfied.

We have no intention of completing a reverse stock split for the foreseeable future. However, our share structure and outstanding shares will need to be addressed if we are to achieve our ultimate plan of up-listing. We intend to submit a petition to do so after completing our restructuring and acquisition plans and achieving targeted valuation and listing goals – and we hope to be in a position to do so in the latter half of 2016.

We continue to see extraordinary opportunities in front of us, and our technology focus is an essential aspect of our plan to build shareholder value with those opportunities. We believe that our existing and planned new acquisitions and technologies collectively, on an integrated basis, provide us with the ability to create new recurring revenue streams and enhance existing retail margins. We will speak more to that in the coming months as we execute our outreach plans. 

In the meantime, despite our silence for the last month, this has been an exciting summer with the completion of the Plaid Canary Corporation and Grow Big Supply LLC acquisition – a transaction expected to bring in excess of $5 million in annualized revenue with targeted operating income margins of about 5%. We believe that the completion of that transaction has helped us to negotiate for investment, restructuring, licensing and acquisition terms at valuations much better than our current stock price. We hope to complete those over the next four to six weeks and will provide further updates as appropriate.
We are grateful for your continued support and we look forward to our next communication.

Best regards,

Paul Riss
Chief Executive Officer
Pervasip Corp.

About Pervasip Corp.  
Pervasip develops and delivers products and technologies to emerging agricultural markets, with a focus on improving grow conditions, yields and value in hydroponic and other indoor grow facility applications.

Forward Looking Statements
The information contained herein includes forward-looking statements.  These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.  You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.  Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity.  We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Additional Information
Pervasip Corp.
Paul H. Riss, CEO
paul@growbigsupply.com 
914-750-9339
 
 

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