The Facts About a Once-Proposed Merger: Alliance Financial Network Inc. and CannaSys, Inc.
The following was written to clarify events that have created confusion about Alliance Financial Network Inc.
On March 30, 2017, after months of negotiation between Alliance Financial Network Inc. (Alliance) and Cannasys, Inc. (CannaSys), Alliance agreed to acquire CannaSys in a tax-free exchange of CannaSys stock. It was also agreed that a change of ownership would take place from CannaSys to Alliance. The transaction was to occur after due diligence was completed by both parties.
Alliance and CannaSys mutually agreed to the wording of a press release, but unfortunately, CannaSys changed the direction of the announcement – prior to publication – to state that CannaSys was acquiring Alliance. This announcement could not have been further from the truth, and the Alliance Board demanded an immediate retraction.
After more than a month of demands by the Alliance legal team, CannaSys issued an inaccurate retraction.
Here are the facts:
- Alliance was looking to become a publicly traded company – not to enter the marijuana industry.
- Alliance was acquiring CannaSys through a reverse merger as a matter of convenience.
- Alliance was acquiring an operating company, through a reverse merger of CannaSys, that Alliance would control.
- A shell corporation was available and had cash available at closing.
- The discussions with CannaSys about the reverse merger had nothing to do with the industry CannaSys was in.
- An inaccurate press release about the proposed details was issued by CannaSys.
- It took CannaSys a month to issue a retraction, despite numerous requests by the Alliance legal team.
- The retraction did not accurately reflect what was mutually approved.
Alliance questioned CannaSys management as to why they did not publish the retraction as agreed.
The agreed to retraction read:
“CannaSys, Inc retracts March 30, 2017 statement of an acquisition of Alliance Financial Network.
The statement should have read CannaSys agrees to a buyout by Alliance Financial Network through
a tax-free stock swap and reverse merger.”
This was deliberately announced incorrectly and never agreed to by Alliance.
Following is a link to the incorrect retraction:
For further information, contact Larry Lipman: 844.446.3976 extension 704