INTERNATIONAL STAR, INC. DOVER, Del., Aug. 31, 2022 /PRNewswire/ --
Dear Shareholders,
As you know, we recently announced ILST's entry into a transaction to acquire Budding Equity, Inc. We are excited about the possibilities presented by our acquisition of this revenue producing cash-flow-positive company that occupies a unique spot in the global cannabis industry.
We appreciate all the feedback we received from many of you following the press release. We want to take this opportunity to address some of the questions that were raised and to share some additional information about us and ILST.
1) We believe that our plans for ILST's future are exciting while being realistic, and our confidence level is high as we work on mapping out a strong growth trajectory for the company. But please realize that claims or predictions concerning ILST that are not necessarily reliable may have been made by others in the past, whether on Twitter or other social platforms or media, with whom ILST's current management has no connection or relationship. We urge our shareholders to rely only on verified statements made by ILST's management, and to read our filings on OTCMarkets.com.
2) Our decision to purchase Budding Equity was based on several factors, including: (i) its historic performance as a business, (ii) its well-developed strategic relationships in its field, (iii) its current contracts and anticipated contract pipeline, and (iv) its ability to achieve superior margins in a royalty-based business. The bottom line is that Budding Equity is unique in that it is a pioneer in intellectual property as it relates to the recreational cannabis industry and has already secured some of the most recognizable and culturally significant properties in that industry.
3) Furthermore, after much consideration, we decided to complete our purchase of Budding Equity in tranches. Our initial position of 6% of the company comes via a senior secured loan with an option to purchase the entire company. That way, we are able to maximize ILST's protection in the event that things don't proceed quite as planned. We firmly believe that this structure is a responsible one and in our shareholders' best interest.
4) We believe that our acquisition of Budding Equity will help provide a solid base for future acquisitions and allow us to capitalize on other opportunities within (but not limited to) the royalty space.
5) Members of ILST management are meeting with industry leaders to discuss their joining ILST's new advisory board and board of directors, which we expect to further enable us to grow the business by securing additional valuable brand partners and properties.
6) We are confident that the current management team, and advisors that are in place are capable and uniquely suited to execute on our business plan.
7) More information will be made available as we continue to integrate the new management of ILST and implement our business plan.
Thank you all for your understanding. We intend to be here for the long haul and to build a business on a solid foundation, a process that takes time and deliberation. We will not sacrifice our long-term vision for short term rewards. The team looks forward to engaging with you and growing International Star into the business we believe it can be.
Sincerely,
Nochum Greenberg
Interim CEO, International Star, Inc (OTC: ILST)
Information about ILST can be found at: www.otcmarkets.com/stock/ILST/filings
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include but are not limited to: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance.
CONTACT:
International Star, Inc.
8 The Green STE A
Dover, DE 19901
email: investors@ilstinc.com
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SOURCE International Star Inc.
