SAN ANTONIO, May 1, 2018 /PRNewswire/ -- Alternate Health Corp., ("Alternate Health") (CSE:AHG) (OTCQB:AHGIF), an international leader in software solutions for the medical cannabis industry, announced today a proposed plan that it believes will substantially increase shareholder value through a spinoff of the Company's blockchain payment systems, Alternate Health Labs subsidiary and other non-cannabis assets into a new corporation that will apply to be listed on a major American exchange.
"We have received an extremely high level of interest in Alternate Health's new blockchain solutions for our laboratories and payment processing systems," says Dr. Michael Murphy, Chairman and CEO of Alternate Health. "We believe these technologies represent the future of both the Fintech and healthcare industries, with the potential to open up new business opportunities in some of the world's most valuable markets."
Proposed Fintech / Healthcare Company
Alternate Health has taken a leadership position in blockchain financial and healthcare solutions. A key product is the company's Zi App Blockchain Payment Gateway. Originally designed to facilitate digital payments in cannabis, this system has earned overwhelming interest as a payment solution for even larger markets, like multi-level marketing, commercial leases and equipment rentals. The new company would be free to negotiate licensing and strategic partnerships without the association of cannabis.
"As it stands, we feel these assets are undervalued in the context of the cannabis company, so we are seeking a platform to launch our technology in new markets beyond the scope of Alternate Health's cannabis focus," says Dr. Murphy. "An uplisting would give us the shareholder value and market liquidity to take on these exciting market opportunities and deliver shareholders an additional opportunity for a strong return on their investment."
Alternate Health Labs would also be included in the new company, since it forms another revenue-generating, non-cannabis asset. The new company would be able to negotiate greater referral contracts for the business, while applying its expertise in blockchain development to software and management systems across the healthcare industry.
Alternate Health's Future in Cannabis
Spinning off the company's blockchain payment and laboratory assets is expected to have a dramatic impact on Alternate Health's cannabis businesses. This process will free up the company to immediately focus on generating revenue from of our CBD products, with Alternate Health already pursuing production and distribution deals in California, Canada and Mexico. A cannabis-focused Alternate Health will also be free provide software services to recreational markets across the United States and Canada.
"We expect this change will position Alternate Health's cannabis assets for explosive growth as we are free to expand our operations into production and distribution," says Dr. Murphy. "This restructuring would allow us fully monetize all our cannabis assets, including software, CBD products, patented delivery systems and education."
While still subject to board and regulatory approval, including shareholder approval if required, the plan would see all cannabis-specific assets remain in Alternate Health. This includes the subsidiaries of Alternate Health Inc., Alternate Medical Media, LLC, and Alternate Health Life Sciences, LLC. Alternate Health USA Inc. and Alternate Health Labs Inc.* would be spun off to form a new public company, which would apply to be listed on an American exchange.
Alternate Health is in the process of preparing complete and representative prospectuses for the proposed spin-off. Separating the companies will materially affect the company's financial projections for 2018. For this reason, management would like to retract previously reported projections for 2018 and, in the near future, issue revised projections for the new companies. For the first time, the company will report projections for individual business lines as opposed to the company as a whole. Alternate Health's goal is to make these projections available to the public in six to eight weeks.
*Note: The spinoff of the Company's laboratory business would affect Alternate Health's previously stated revenue projections, and once the details of the spin off plan are confirmed, the Company will update on how the plan is expected to impact previously disclosed revenue projections.
General terms of the proposed plan:
- NewCo will apply to be listed on an American exchange.
- Management will seriously consider legal and accounting advice to create an ownership structure that best maintains shareholder valuations, while maximizing tax efficiencies.
- As a preliminary plan, no timetable has been set and final agreements are still subject to board, shareholder and regulatory approval and considerations of tax, corporate and securities matters in the United States and Canada.
About Alternate Health
Alternate Health Corp. (CSE: AHG, OTCQB: AHGIF) Alternate Health has established multiple arms-length operations within the medical cannabis industry, each of which drives consumers, data and strategic opportunities to the company's other verticals. This sophisticated cross-integration of the company's enterprises has positioned Alternate Health as one of the only cannabis companies that delivers consistent revenue and intellectual property without growing, manufacturing or distributing the cannabis plant. Through its software solutions, data analytics, and patented delivery systems, Alternate Health's goal is to be the global authority on scientific and clinical support for cannabis in regulated markets. Alternate Health is well positioned to reinvest internal operating cash flow in its platform over the long term, creating an attractive investment profile for its shareholders.
Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., Canopy Growth Corporation, and Aphria Inc. Alternate Health is differentiated from other cannabis companies by its focus on ancillary services for patients, healthcare professionals and regulatory providers rather than selling a commodity. For more information about Alternate Health Corp., visit www.alternatehealth.com.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects, financing plans and spin off plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Alternate Health Corp.