Pervasip Corp. (OTCPK:PVSP) announced the restructuring of its cannabis operations to convert about $15,000,000 in debt into 15% of a newly formed subsidiary. The restructuring is a prelude to the Company?s previously announced plan to spin that new subsidiary out into a standalone public entity on the OTCQB market.

The Company has completed its final audited financials, which have been instrumental in guiding this decision. A key aspect of this restructuring involves converting over 80% of the company's debt into equity in the new cannabis-focused entity. This move is designed to streamline operations and strengthen Pervasip's financial footing.

It's important to note that the impact of the subsidiary debt-equity conversion and the corresponding dilution at the subsidiary level will not impact the subsidiary common shares reserved for current Pervasip common shareholders in the subsidiary spin out. Thus, the subsidiary spin-out will still involve the 15,000,000 subsidiary common shares reserved for the Pervasip common shareholders as announced in 2023, 15,000,000 subsidiary common shares reserved for the newly restructured subsidiary debt, and the remaining 70,000,000 subsidiary common shares for holders of Pervasip?s Series K Preferred Stock. In addition to this restructuring, Pervasip is embarking on a strategic transition away from non-productive assets, focusing exclusively on higher-margin branded product sales in all of its operating markets.

This shift is expected to enhance profitability and efficiency, aligning with the Company?s long-term growth objectives.