Palayan Resources Gives Update on Company
Lady Lake, FL, May 10, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Palayan Resources, Inc. (the “Company” or “Palayan”) (OTCMarkets: PLYN), a publicly traded, fully reporting emerging growth company, reports that the previously reported joint venture with Provenance Gold Corp. has been rescinded. The rescission was mutually agreed to and requires no further action.
Management recognizes the Company needs to move in a new direction and will pursue acquisition opportunities that will benefit private companies through PLYN’s public status. The benefit to the Company and its shareholders will be from acquisitions based on growth and revenue of targeted acquisitions.
PLYN will be restructured as a holding company seeking transactions on a managed basis, acquiring controlling interests in acquisition targets as subsidiaries of the Company. Using a holding company strategy, the company will be able to mitigate risk while making multiple acquisitions. All targeted acquisitions must be audited or auditable.
The Company will make either majority or minority investments in companies that meet its investment criteria.
As a holding company PLYN will not manufacture anything, sell any products or services, or conduct any other business operations. Its purpose, as the name implies, is to hold the controlling stock or membership interests in other companies.
The Company is taking an agnostic approach regarding industry. In almost every contemplated acquisition PLYN will retain the acquired management team. The subsidiary, having its own management, will run the day-to-day business. The retention of management post-transaction will maintain operational continuity. PLYN’s management will be responsible for overseeing the operations of the subsidiaries and assisting management as needed.
The Company is seeking opportunities in mature private companies in transition or growth mode. Management has begun sourcing opportunities through a number of third-party organizations. Transactions will be subject to industry standard due diligence requirements. Of course, no two acquisitions are the same, so the due diligence process will vary from one situation to the next. In general, however, there are up to five types of due diligence; (i) Business; (ii) Accounting; (iii) Legal; (iv) Valuation and (v) Environmental, that will need to be completed as part of the process for any proposed transaction.