LOS ANGELES, CA -- (Marketwired) -- 06/20/14 -- SK3 Group (OTC Pink: SKTO) (PINKSHEETS: SKTO) makes the following statement:
Our stock is set to trade again on the over the counter market grey sheets beginning upon the opening of the markets on June 20, 2014. We appreciate the support of our shareholders during the past two weeks. Our corporate teams has heard from far more supportive and encouraging investors than we have heard from discouraged and negative investors, and that has buoyed on our staff's commitment to continuing to grow the business during this trying time.
We believe we have fully disclosed all material items in our filings and are not aware of any material omissions or misstatements in those reports. We are unaware of any activity in the trading of our stock that could create concern. We are communicating with the SEC to elicit and answer any questions they may have.
Business Growth and Development
During the past two weeks, while trading in the shares has been suspended, the Company has been continuing to grow the business and plan its going forward strategy.
We are happy to report that the Company's business has continued to grow, with increasing sales of our products. We have had to hire additional drivers to service the increased demand for products to be delivered by www.pharmajanes.com.
As we reported earlier this week we are committed to launching the products and services we have already announced and you will see more news from us on this front as we go forward.
I am pleased to report that we are also engaged in new initiatives to grow the business, including being in late-stage and interesting potential partnerships with a variety of medical cannabis-related business partners, which we will be in a position to announce soon.
The Merger: A New Vehicle
Alternative Energy Partners, Inc. ("AEGY") has advised us that it has agreed in principal to merge with or be acquired by a Canadian company listed on the Canadian Stock Exchange, with a dual listing on the Frankfurt Exchange to be applied for thereafter, and a letter of intent has been received by the AEGY and nearly all of the terms have been agreed and approved by the Board of Directors of the AEGY. The letter of intent is expected to be signed no later than Monday, June 23, 2014, followed by the preparation of a definitive acquisition agreement. This transaction should be completed in the next 4 to 6 weeks, and will position AEGY and SKTO to undertake regulatory testing and approval of their cannabis-based products in Canada, where regulatory standards for cannabis-related product testing are more encouraging. It will also result in a more orderly trading market for the common shares of the companies, which will help to end some of the trading difficulties currently faced by the Company's shareholders. Once the transaction with the Canadian public company has been closed, it is intended that the previously announced merger between the Company and AEGY will be completed in the Canadian public company, such that one entity will move forward from the two companies. The boards of directors of both companies have approved this transaction.
Specific details of the planned acquisition transaction and its effect on the Company and its shareholders will be provided as soon as the definitive acquisition agreement has been signed, but the Company will update shareholders when the letter of intent has been signed. Rest assured that we will continue to move forward with maintaining any requisite regulatory filings and we will audit our financials if and as required to do so.
Corporate Governance and Operations Changes
While this merger is moving ahead, we are commencing a search for a full-time CEO for the merged company, and we will be restructuring the board of directors for the new company, so that the new company's board of directors will look and function increasingly like a traditional public company board of directors, with a combination of directors drawn from management and independent directors, as well as having committees overseeing audit, compensation, and nominating and governance functions. We are also going to be enhancing the new company's capabilities by creating and building out an advisory board of high profile and well placed individuals in the industry and related roles to assist the new company in its growth. We are also seeking an appropriately qualified CFO to join the new company so that everyone will have confidence in our financial statements and their presentation.
I want to thank our shareholders and customers for continuing to believe in the Company and its business model, and we look forward to the exciting days ahead as we continue to serve the growing population of medical cannabis patients in California, and later nationwide.
The statements in this document have not been evaluated or approved by the FDA. The products and statements referenced in this document are not intended to diagnose, treat, cure, or prevent any disease.
SK3 is a healthcare logistics and fulfillment consultancy focused on the delivery of alternative care and medicine. With seasoned management, breakthrough technology and best practices, SK3 brings standardization and transparency to this rapidly growing segment of the alternative care field.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.