Earlier today, Cherubim Interests, Inc. (OTC: CHIT) released a letter to shareholders detailing several corporate initiatives stemming from its previously announced stimulus program. This program, originally outlined in October 2015, is intended to serve as a blueprint to the company’s ongoing efforts to enhance net stockholder equity while simultaneously acquiring and attracting favorable investment opportunities. Notably, Cherubim has made progress in the development of its hybrid business model through the acquisition of two revenue-producing assets, including Victura Roofing LLC and Cherubim Builders Group LLC (Oklahoma), which both jumpstarted the company’s roofing footprint in Dallas-Fort Worth and cleared the way for immediate expansion into the Oklahoma City Metropolitan Area.
The early results stemming from these acquisitions paint a promising picture for the future of Cherubim. According to today’s update, the company has already subcontracted large-loss residential reconstruction projects totaling in excess of $400,000 in revenues. The company also continues to prepare for the grand opening of its BudCube Cultivation Systems cultivation centers, which will leverage a proprietary, fully-portable and scalable controlled environment technology to allow cultivators to gain quick access to the fast growing medical and recreational cannabis markets at an attractive price point. Cherubim is currently in the process of prospecting raw land for the project.
On the financial front, Cherubim’s management team has also placed focus on solidifying the company’s balance sheet in recent months. Since May 31, 2015, Cherubim has successfully eliminated more than $1.5 million of affiliate and non-affiliate debt from its books, including over 90 percent of its ‘toxic’ convertible debt. To reward its majority stakeholders and insulate them from past, present and future dilution, Cherubim also created a series of anti-dilutive, convertible preferred shares, which it released in the form of a dividend payment. In an October news release, Patrick Johnson, CEO of Cherubim, acknowledged that there has been “significant dilution over the recent past in Cherubim” as a result of “the automatic conversion of aged non-affiliated debt.” He added that the company’s decision to issue a convertible preferred stock dividend was aimed at protecting “the integrity of people’s investments in the open market.”
“Our go forward strategy is a simple one: continue to execute on the plan set forth last October,” Johnson added in this morning’s update. “I am pleased to address shareholders… and want to reiterate our commitment to strengthening our stride and growing corporate equity.”
For more information, visit www.cherubiminterests.com
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