The PAWS Pet Company, Inc. (OTCQB:PAWS), announced it has executed an
agreement to acquire MESA Pharmacy, Inc. as part of its new strategy to
become a dominant player in the delivery of compounded pharmaceutical
products to consumers.
PALO ALTO, CA, Oct. 29, 2013 /CNW/ - The PAWS Pet Company, Inc.
(OTCQB:PAWS) has executed an agreement to acquire MESA Pharmacy, Inc.
(MESA) from its parent, Pharmacy Development Corp. in exchange for
preferred stock. PAWS will be filing a report on Form 8-K within the
next few days. Previously, the Company had announced that it and PDC
had determined to enter into a joint venture, however progress on
PDC/MESA's audit has been much better than anticipated and the parties
have determined that purchasing MESA would be better for all of the
parties and their respective shareholders.
MESA focuses on providing custom compounded non-narcotic, transdermal
topical pain medications that are marketed to industrial health
physicians and clinics. MESA has developed a series of topical
ointments, in different strengths, that provide the pain relief doctors
During the current month, according to MESA, it has received more than
$3,400,000 in orders and filled more than $1,500,000 in actual
prescriptions. MESA believes that it is on track to exceed $25,000,000
in revenues during fiscal year 2014 with much greater revenues a very
PDC will be paid a royalty on collection for each prescription filled by
MESA as well as receiving 500,000 shares of PAWS Series D Convertible
Preferred Stock. The parties will begin the process of transferring
MESA's license from PDC to PAWS as soon as possible and the transaction
is intended to close upon the issuance of a new California pharmacy
license or sooner. PDC has the right to appoint three members to the
Board of Directors as soon as the new license is issued and the audit
of MESA's operations is completed.
Furthermore, the holders of a majority of the Company's Series B
Convertible Preferred Stock shares have agreed to vote to reduce the
maximum conversion rate in order to offset the new Series D stock, on a
fully diluted basis.
Additionally, PAWS intends to spin off its remaining airline related
properties, freeing the Company of much of its debt and further intends
to settle most of its remaining debt in the very near future.
"We are excited about these developments, for our company and our
shareholders, and we believe with MESA's great team, a great foundation
for future growth is set", said Dan Wiesel CEO of The PAWS Pet Company.
He continued, "With the execution of this agreement, the way forward
for PAWS is clear and we will now focus on completing the licensing
process, domesticating the Company in Nevada and changing our name to
About The PAWS Pet Company, Inc.
The PAWS Pet Company, Inc. is undergoing a transition from the pet space
to the pharmaceutical space. This exciting transition strategy has been
developed to take advantage of the changes underway in traditional
medical services. PAWS believes that great opportunities exist in
pharmaceuticals and how they are delivered to the public.
For more information on The PAWS Pet Company go to www.thepawspetcompany.com
For more information on Pharmacy Development Inc. go to www.pharmacydevelopment.com
Company Contact: firstname.lastname@example.org
Certain statements made in this press release are forward-looking in
nature (within the meaning of the Private Securities Litigation Reform
Act of 1995) and, accordingly, are subject to risks and uncertainties.
The actual results may differ materially from those described or
contemplated and consequently, you should not rely on these
forward-looking statements as predictions of future events. Certain of
these risks and uncertainties are discussed in the reports we filed
with the SEC.
SOURCE: The PAWS Pet Company, Inc.
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