LAS VEGAS, Aug. 14, 2015 /PRNewswire/ -- Pure Hospitality Solutions, Inc., (OTC: PNOW) announced today, that the Company has ceased the selling of the convertible debt, responsible for the stock's substantial dilution; having secured an arrangement with its largest debt holder, to stop all future sales of their convertible debt to third party investors – instantly staving off any future dilution caused by the sale of this debt.
What this simply means, is, the shares that came to market the past 15 months, as a result of this particular convertible debt being sold to third parties, has finally come to an end.
"That's it, finito!" stated Melvin Pereira, President and CEO of Pure Hospitality Solutions, Inc. "No more third party sales of this note means substantially less dilution; a stabilizing opportunity for our overall value and confidence."
Although management has made substantial progress decreasing its overall debt by roughly $4 Million, reducing dilution remained a constant struggle. Why? Unfortunately, there is no legal limitation to a debtholder's ability to sell portions of their convertible note to third party investors. Moreover, there is no limitation to the speed in which the new third party investor could convert their note. As a result, the Company's capitalization table was terribly affected and an exorbitant number of shares came to market.
"I'm from the private sector, so I admit, it took a little time to see how detrimental these conversions were," Pereira continued. "The worst part is, these transactions are legal. But I will not allow this Company to be destroyed by rules allowing a fortunate few to have little regard for the 'many'."
It's no secret that dilution has been a concern for an extended period of time. So, the removal of legacy debt has been a long standing endeavor for Pereira. An estimated 90% of the market's dilution was directly related to this particular debtholder's convertible note. Fortunately, now that the entire debt has been 'locked-up' in a manner that prohibits the sale of the debt to third party investors, management has time to complete the retirement and extinguishment of this entire debt. Another option of consolidating this debt, along with the few smaller debts, is also available. Either way, the market will no longer be subjected to any further dilution stemming from the sale of this particular debt.
Pereira concluded, "The fact is, with the integration of Sabre Travel and Leonardo Worldwide, we are finally where we need to be to launch the beta version of Oveedia within the next 10 business days. The equity value of this company should easily one day far exceed the value of the 'locked-up' note. So, it behooves the debtholder to position themselves as a long-term equity player, to take advantage of Oveedia's eventual high level of success."
About Pure Hospitality Solutions, Inc.
PURE provides proprietary technology, marketing solutions and branding services to hotel operators and condominium owners. The Company's vision is to build competitive operations in the areas of (i) online marketing and hotel internet booking engine services, (ii) hotel branding and, (iii) own, operate and in some instances develop, boutique hotels under the new, "by PURE" brand.
Pure Hospitality Solutions, Inc. Pinterest: http://www.pinterest.com/purehss/
Pure Hospitality Solutions, Inc. Facebook: https://www.facebook.com/PUREnow
Pure Hospitality Solutions, Inc. Twitter: https://twitter.com/purehss
Pure Hospitality Solutions, Inc. Google +: https://plus.google.com/+PurenowSolutionsplus/
Pure Hospitality Solutions, Inc. LinkedIn: https://www.linkedin.com/company/pure-hospitality- solution
Pure Hospitality Solutions, Inc. 2015 First Quarter
Pure Hospitality Solutions, Inc. Investors Hangout
Safe Harbor Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Pure Hospitality Solutions, Inc.