PENNEXX Prepares for Uplisting to OTCQB, Discusses the Value of its $34.9 Million NOL Carryforward, and Announces Issuance of Shares to its Management Staff
Philadelphia, PA, Jan. 21, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Pennexx Foods Inc. (PNNX) has selected and delivered its first financial data to a PCAQB auditor, has issued shares
to its management staff, and discusses how having a sizable NOL carryforward in the tens of millions can mean a significant increase in shareholder value as well
as greater dividends as Pennexx enters a profitable stage. Pennexx plans to complete the up listing in the second quarter.
Upon approval of OTCQB status Pennexx would be a far more exclusive investment as, according to OTC Markets website, there are approximately 10,369 OTC Pink stocks but only 953 OTCQB stocks.
Uplisting is in line with the company's ongoing strategy to increase transparency to its shareholders, prepare the company for rapid growth and increase shareholder value. Entering the OTCQB middle tier will also distinguish the company by creating considerable investor confidence as its financials will be vigorously scrutinized.
This is because to become an OTCQB stock, the company must meet much more stringent requirements such as having an audit committee, certifying those audits, having independent directors, and certification of its management.
It was announced on October 16, 2019, that Pennexx has an NOL that could be very valuable to the company and future partners. According to VRC https://www.valuationresearch.com/services/tax-compliance-planning/nol ... having a net operating loss (NOL) carryforward is a valuable asset because they can lower the company's taxable income. This NOL stemmed from previous management's operations dating back to before 2004. According to IRS Publication 536, an NOL can be carried forward indefinitely. Part of this process is to consider this $34.9 million NOL carry forward so that it can be fully disclosed to shareholders.
As PENNEXX enters a profitable stage, having this NOL carryforward could reduce its tax obligation. Therefore, shareholders would realize more significant benefits from revenue, and the company could pay a greater dividend.
Vincent Risalvato, CEO of Pennexx, said, "Becoming audited and uplisting continues with the company's history of following through with what we say we are going to do. I couldn't be more thankful for the fortitude and opportunity that our team and shareholders have created!"