TULSA, Okla.--(BUSINESS WIRE)--CAVU Resources, Inc. (OTC Markets: CAVR) announced today it has closed a stock purchase agreement to buy 100% of the outstanding common shares of kushAmerica, Inc., www.kushAmerica.com and http://www.itssoku.com, (“KUSH”), an entertainment company that has developed an unique marketing app in the Cannabis and Entertainment space.
KUSH has developed a proprietary mobile app that unites legal consumers, advocates, enthusiasts and businesses with access to each other through chat and information platforms in an effort to be the go to space in the industry, all with the endorsement of music and entertainment industry leaders. As a result, KUSH will be bringing a distribution network of informed, enthusiastic, and creative Street Team Marketers to concerts, movie showings, local bars, clubs, coffee spots, dispensaries and campuses. KUSH Marketers will spread the word, to drive the masses to the KUSH mobile app download, creating what KUSH management forecasts to be one of the fastest growing cultures in the country. Beta registration and testing has commenced. The app is scheduled for limited launch on April 20, 2019.
Mr. Robert Silver has been appointed Chairman and CEO. Mr. Silver, the founder of KUSH, has a strong background in the entertainment industry. He has worked with several NFL stars, music acts and artists. Mr. Silver has recently produced his own reality show called Cowboy ALL IN, partnering with STX (Legendary Pictures) at the time of this press release. Additionally, Mr. Silver currently manages a 10-year-old actor who stars on the hit CBS show Young Sheldon, as well as one of the top in-house producers in music today. Mr. Silver creates and inspires, bringing his vision to reality.
Robert W. Demes has been appointed President and COO. He is also the founder of The Elite Growers (www.theelitegrowers.com), premier growers of very potent medical marijuana. View The Elite Growers mission here: www.theelitegrowers.com/mission. Over the last 35 years Mr. Demes has been a key figure in deploying financial and business skills for a number of companies that range from small business startups to established publicly traded entities in a myriad of business sectors. During his career, he helped deploy capital for many industries including technology, oil and natural gas, heavy equipment infra-structure, and international trade. Mr. Demes has also developed residential and commercial properties throughout North and South America. A former political dignitary for Latin America, Mr. Demes was responsible for generating hundreds of millions of dollars in trade on behalf of Costa Rica.
In summary, the terms of the KUSH Acquisition bring a new life and opportunity to CAVU (OTC Markets: CAVR). CAVU will increase its authorized common shares to 1.5 Billion as part of the transaction. The acquisition has been structured to provide value to both current and future shareholders. CAVU is issuing 500,000,000 (five hundred million) shares of Restricted common stock and converting all of its Preferred shares into common stock. KUSH will become a Nevada C corporation and be a wholly owned subsidiary of CAVU.
In preparation for this transaction and to complete the restructuring of the company CAVU has accelerated efforts in cleaning up the balance sheet. Former CEO William Robinson converted $536,708 of convertible note balance, valued at $0.015 (a penny and a half), into 35,780,536 of restricted common shares; and CFO Mike Sheikh’s $121,908 convertible note balance, also valued at $0.015 (a penny and a half) was converted into 8,127,222 of restricted common shares, demonstrating that the company continues to eliminate its debt at a significant premium to market. The company will also be converting all of its outstanding Preferred A and B shares into 127,500,000 common shares.
“New management is confident in its ability to execute and to achieve long term shareholder value. We hope our shareholders realize that we take our fiduciary responsibility very seriously. This means that we will use the same lens when evaluating future acquisitions. Mr. William Robinson will also be resigning as CEO to pursue other opportunities. We plan to secure conventional funding sources to allow us to close high growth acquisitions that should bring an unrealized value to our shareholders. We are very excited about being in a position to report the Company's new progress. We believe this acquisition as well other targeted acquisitions in the technology related and delivery systems of cannabis products will become a showcase for the low risk opportunities that requires less capital, while bringing potential exceptional returns to CAVU shareowners.”
About CAVU
During World War II, Navy fighter pilots would look up at the sky and if it was a ‘CAVU’ day then it meant ceiling and visibility unlimited. The founders of CAVU Resources chose the name CAVU because they believe that the Company will be the embodiment of its name. CAVU was formed with the goal of becoming a recognized player in business technology with unlimited future visions. The company seeks out unique opportunities that help build shareholder value through innovative resources.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking statements" under applicable US securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals, where applicable; and the state of the capital markets. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.