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 seek.
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 real possibility.
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 Praxsyn Corporation."
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.
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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