NOHO, INC.
PROVIDES EXPLANATORY UPDATE TO SHAREHOLDERS ON CURRENT FINANCIAL
STATEMENTS
Scottsdale,
AZ -- June 22, 2021 -- InvestorsHub NewsWire -- NOHO, Inc.
(OTC
PINK: DRNK), a Wyoming corporation (the
"Company"), announced the following:
The Company is pleased to announce the
long-awaited filings of our current financial statements with OTC
Markets, and management is providing the following explanatory
summary for our shareholders.
Following a dormant period since 2017, the current
financials contain limited reporting categories, as all other
accounts had been settled and there were no new transactions.
However, management has determined to highlight some key entries as
they bear upon the future of the Company going into the third
quarter of 2021 and beyond. Of major importance, the new
filings confirm there has been no dilution of the stock
since 2017 and that management does not own any common shares at
this time.
Asset Valuation
Management is moving forward with the final
structuring of the asset-purchase transactions with Sibannac, Inc.
(SNNC)
and reaffirms that it will be using the previously audited numbers
from the 2017 filings as a barometer of the valuation for the
warrants to be distributed to the NOHO shareholders. As of
2017, the Company based the value of the software it acquired
previously at $2,806,244. While that remains the valuation
for the acquisition component, the Company has elected to
depreciate the value of the IP to $500,000 for the current filings
due to the dormancy of operations and the unknown value of the
software in the future. This decision was cautionary and
based on management's conservative approach with the goal of
eliminating valuation issues as the Company moves toward an audit
and a return to fully reporting SEC status.
Convertible Notes
Of considerable interest is the accounting of the
convertible notes that remain on the books as Long Term -
Derivative Liabilities. This results from the fact that there
cannot be any near-term conversions of these old notes based on two
factors.
First, the majority of the notes, entered into by
the former management from 2015, have no share reserves in place
and cannot be submitted by holders for
conversion.
Second, current management's conversion freeze
agreement from 2017 with the largest holder remains in effect
regardless. Management is in communication with the primary
debt holder and has discussed terms on a lockdown/leak-out
agreement in order to retire the debt with a combination of cash
and equity conversion.
The resulting and fortuitous benefits to the
Company are also twofold: First, any stock that is ultimately
converted will be based on the Company's meteoric 1700% share price
increase from a few years ago, effectively reducing any issuance to
a relatively small percentage of the active float. This is
why the Company has filed the announced share reduction of the
authorized common stock with Wyoming.
Second, due to the terms of the eventual, renewed
leak-out agreement, the restrictions on sales of any new shares
being sold into the market should have a minimal impact on share
price. As the Company moves into operations and revenues
within the next 30 days, further share price increases will only
work to further reduce the amount of stock ultimately issued to
cover the notes.
Revenue and Operations
The NOHO
site is in final development and the new After Shot is
currently in production. The Company expects to launch the
site in August with product available for sale. In addition,
management has decided to go to market with the sale of its Delta-8
THC products under the RaD8 brand. While
management initially resisted direct to consumer sales to due
regulatory concerns, the Company is now comfortable selling
consumer products to the vast majority of the country, while
avoiding the patchwork of states that do not permit Delta-8 sales
and which, fortunately, amount to only a small segment of the
overall population.
As a further benefit, the Company will be
introducing its payment processing solution by separate release
shortly. This solution will allow the Company to make sales
of Delta-8 without having to seek banking approval and rely on the
conventional credit card processing networks that charge high
transaction fees.
USPS
The industry received unexpected, beneficial news
last week confirming that the U.S. Postal Service has retracted its
ban on shipping vaping products, like Delta-8 vape pods, through
the mail. As other private carriers initially followed USPS'
lead, it is hoped they will also revise their positions to allow
shipments direct to consumer.
"On behalf of the entire NOHO family, I am so
happy to finally submit our current financials to OTC to get us
current again, on the way to an audit and fully reporting status
and soon to be back in revenue this Summer!," said David Mersky,
NOHO's CEO. "NOHO is back and ready to rock in 2021!
Everyone is out and having fun again since last year and this
couldn't be better timing for the re-launch of our recovery shot
and other amazing products."
More from NOHO – in addition to the After
Shot, we have developed a new line of products, all leveraging
Hydro-Nano technology, which will be rolling out soon. For
additional information and product updates, please follow us at
www.nohoshot.com and follow NOHO on
Twitter at www.twitter.com/nohodrink.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains statements that
constitute forward-looking statements within the meaning
of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These
statements appear in a number of places in this
release and include all statements that are
not statements of historical fact regarding the intent, belief or
current expectations of
Noho, Inc. (the "Company"), its directors or its
officers with respect to, among other things:
(i) financing plans; (ii)
trends affecting its financial condition or results of operations;
(iii) growth strategy and operating
strategy. The words "may," "would," "will," "expect," "estimate,"
"can," "believe," "potential" and similar
expressions and variations thereof are intended to identify
forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve
risks and uncertainties, many of which are beyond the Company's
ability to control, and actual results may differ materially from
those projected in the
forward-looking statements as a result
of various factors. You should not place undue reliance on
forward-looking statements since they involve known and unknown
risks, uncertainties and other factors, which
are, in some cases, beyond the Company's control and which could,
and likely will, materially affect actual results, levels of
activity, performance or achievements. The Company assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. Important factors that could cause actual
results to differ materially from the company's expectations
include, but are not limited to, those factors that are
disclosed under the heading "Risk Factors" and elsewhere in
documents filed by the company from time to time with the United
States Securities and Exchange Commission and other regulatory
authorities.
Contact: IR@TheCampusCo.com