Company Outlines Operational Strategy
FRAMINGHAM, MA / ACCESSWIRE / January 31 , 2020 / KYN Capital Group, Inc. (OTC PINK:KYNC) is pleased to provide a shareholder update.
Change of Control:
In December of 2019 the Acting CEO, Phil Sands, made the executive decision to move the company in a different direction and part ways with its Board of Directors. The company elected to re-domicile from Nevada to Colorado and appoint Jason Black as a new Director. Mr. Black, also the CEO of Cann American Corp., has established a solid track record of navigating compliance and corporate structure issues as well a keen ability to re-negotiate outstanding debt instruments and achieve significant share reductions. Additionally, Mr. Black has well established networks throughout the hemp and cannabis industries. These relationships strongly appeal to the company's plans going forward.
Though most of the previous board had already resigned, there became some debate over Mr. Sands' authority to act without the approval of then Secretary, Sayekhul Islam. After a few weeks of negotiations, the parties came to a settlement where all corporate actions from December forward were affirmed and recognized as valid and Mr. Islam, as well as all previous board members, submitted formal resignations.
Though many of the details of the Settlement Agreement with former Directors are confidential, the company was able to negotiate a 400,000,000 common stock reduction of 800,000,000 shares issued to a former Officer. The remaining 400,000,000 are restricted. The company was also able to secure all credentials to OTC Markets, bank accounts, websites and emails necessary for company operations.
Due to a volume of activities on the OTC Markets account during the control dispute, OTC took the step of temporarily locking the account. The company is required to submit a new application detailing the change in control and submitting the subsequent fees. This process is under way and OTC Markets should update soon.
The company is currently working with several note holders and shareholders to re-negotiate debts and issuances previously executed by former management. The company has coordinated with a "friendly" debt holder to create a significant share reserve and max out the O/S in order to block other debt holders from converting into the market. Though this may reflect as an increase in the O/S, the share reserve is not intended to be issued or enter the market but rather intended to leverage other note holders to come to the table and re-negotiate their debts. The current float is approximately 1.1 billion. The company believes this strategy, as well as several other confidential strategies, will avoid the need to effect a reverse stock split and the company has no intention of doing so at this time.
The company intends to return to its core mission of asset-based lending to promising companies and start-ups operating both privately and publicly. There have been numbers of strong opportunities presented previously that were unable to close due to competing views within the former board that are now being revisited. The company is also engaging several new opportunities that have recently been presented as well as potential joint ventures with other public companies.
The company has been able to establish non-dilutive funding through a third party to help execute on deals under consideration. There will be additional updates as the company expects to close on several targets quickly, outlining the investment, the company's revenue stake and value to shareholders.
Stated CEO, Phil Sands: "I am reinvigorated and inspired to be able to steer the company unhindered in the direction I had envisioned. The assistance of our new Director, Mr. Black, has already proven to be invaluable. We've been able to make more progress in the past few weeks than I was able to make in the past nine months. This is truly a new chapter for KYN and I look forward to updating shareholders very soon as we execute on a number of significant milestones and our new vision for the future."
Forward Looking Statements:
This press release contains forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
SOURCE: KYN Capital Group, Inc.