Mojave Jane Brands Inc (CSE:JANE) (OTCMKTS:HHPHF) announced on Friday that, in line with a strategic review of its operations, it has struck an agreement to sell its 100% membership interest in Nelson & Mark LLC, which holds the CALIGOLD intellectual brand property.
On April 29, 2020, Toronto-based Mojave Jane announced that, in order to preserve shareholder value and continue as a going concern, its board had commenced a strategic review of its assets and liabilities, and is developing a go-forward plan.
As one of the outcomes of the review, Mojave Jane is selling its membership interest in Nelson & Mark to two former employees and original owners of its subsidiary HS Airway Holdings.
In a statement, Mojave Jane Brands interim CEO Cam Birge said: "As we are nearing the completion of our strategic review, it has become apparent that the risks associated with investing the required resources to bring CALIGOLD to profitable revenue levels are such that the optimal outcome for shareholder value preservation was to divest ourselves from these assets.”
He added: “As a result of this transaction, we hold no further liabilities related to the CALIGOLD assets. Furthermore, we are reducing our shares outstanding, a positive outcome that we worked hard towards achieving. We are now focusing on the remainder of the strategic review, the outcome of which we anticipate announcing in the coming weeks."
The company will transfer to the buyer all issued and outstanding membership interests in Nelson & Mark, and will assign certain contracts and their remaining obligations to the buyer. In return, the buyer will assume certain liabilities of HS Airway Holdings. The company said the shares outstanding have been reduced by 3.9 million.
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