SOURCE: Pure Hospitality Solutions, Inc.

Pure Hospitality Solutions, Inc.

February 24, 2016 09:35 ET

Pure Cuts Additional Toxic Debt in Next Round of Securities Buyback

LAS VEGAS, NV--(Marketwired - Feb 24, 2016) - Pure Hospitality Solutions, Inc. (OTC PINK: PNOW), parent Company of the Central American-Caribbean online travel Agency (OTA) Oveedia (www.Oveedia.com), announced today that the Company is entering the second phase of its Debt Repurchase Program, prepping to repay and retire an additional block of its toxic debt.

"Similar to the initial round of debt buybacks, we will further reduce our derivative liability and save shareholders from unfair dilution," stated Melvin Pereira, President and CEO of Pure Hospitality Solutions, Inc. "We are working diligently to repair our balance sheet, in preparation of our anticipated upgrade to the OTCQB or OTCQX. This next round of debt buybacks only proves our resolve to build a real Company, and solidifies our strengthening financial position."

Management indicated that the Company remains on track to eliminate nearly all of its toxic legacy debt, as planned. All told, management believes that $3 Million of toxic debt held by the primary noteholder will be eliminated, the Company's derivative liability will be reduced by nearly $2.5 Million and the possibility of over 6 Billion additional shares of dilution will be nullified.

It should be noted, in an effort to become fully reporting with the Securities and Exchange Commission, the Company needs to be as compliant as possible at every level; including its contractual obligations to debtholders. In remaining compliant, prior to initiating the Debt Repurchase Program, management could have been forced to possibly increase the authorized shares to nearly 15 Billion, or more. However, now an increase of that size is no longer needed to remain compliant because "focusing on debt buybacks was an extremely intelligent move by Mr. Pereira," suggested a member of the Board of Directors. "

The new, long-term debt could be viewed as an 'accretive' transaction," continued the Director. "Not to mention, now, we'd only be made to consider a much smaller, six to seven billion share increase to the authorized, in order to remain compliant with a new long-term capital obligation; an obligation that does not begin to come due until 2017. For the first time in a very long time, the Company is in a good position and gaining excellent traction."

Pereira concluded, "I am aiming to eliminate up to an additional 14% of toxic legacy debt by the close of this month and ensure that the Company remains responsibly compliant with its contractual debt obligations. This will bring us closer to having a 'cleaner,' much stronger balance sheet. Once again, this for the first time in several years, giving PNOW shareholders something exciting to look forward to."

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 is the creator of Oveedia, the Central American-Caribbean online travel hub.

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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.

Contact Information

  • Contact:

    Team PURE
    IR Div.
    (800) 889-9509