PureSpectrum, Inc. (OTCMKTS:PSRU) Is A Prime Turnaround Opportunity

Volume in PureSpectrum, Inc. (OTCMKTS:PSRU) increased recently as the market got to know the new initiatives of the management. The company is about to change its strategy completely, and it is also planning to acquire other businesses. The reasons behind this corporate move? Mina Mar Group, a shareholder of the firm that took control very recently, put in place new management to turn around the share price. Like the market participants on iHub, we became interested and decided to assess the share price potential of PSRU.SourceThe change of controlOn March 17, 2017, the market got to know that Pure Spectrum had been acquired by Mina Mar Group Inc. The new owner of the firm entered into a share exchange agreement to acquire a control block. Since then, the lawyers have been working with the company to gain full control of it. The following is a letter from one of the law firms requesting documents from the previous management. The wrongful actions taken by the previous directors, which made the share price collapse, were noted in the letter:

"This corporation and its shareholders have suffered large losses due to your wrongful actions. You, and anyone who assisted you in these actions, can look forward to being held fully accountable"

Check out the full letter:Investors HubIn our opinion, the change of control is the best thing that could have happened to PSRU and its shareholders. The new management in place will obviously try to recover the value lost by the company. The confidence in the firm looks to have been restored. The market knows it and explains the turnaround.The New Plan The press release that excited the market was released on June 26, 2017. We could read that the new management is pursuing an acquisition of another business and it will update the due documents (old annual reports, quarterly earnings):

"We are the interim management of PSRU. We have been appointed by the preferred shareholder to find a suitable candidate, to bring all filings up to date and to bring the company up to date. Our mandate is to not only bring filings current and up to date, but to also restore the much-eroded shareholder value. " Source

The documents will be uploaded on the OTC Markets website. What will happen once the documents are online? Usually, when a company becomes active again, market participants celebrate it by pushing up the share price. This may be the case. There are two ways to profit from this catalyst. Either you check the OTC Markets everyday or subscribe to our newsletter, where we provide rapid information about this company and others.Furthermore, in the press release, some new information was given to the market. The most important notice was that the previous management is not in place any more. Joel Notario and his team are not in charge anymore.

"The current management listed on OTC markets is no longer with the company (Joel Notario - the Seller). This includes any financiers and directors, debt holders of non PSRU assets, and those trying to download and intertwine PSRU affairs with other business." Source

Additionally, the company retained a law firm to manage the "debt download and overhang issues". It is the law firm that we saw in the letter attached.Merger Ahead and Restructuring - Cannabis?The company also put out that a merger with another business may be a very interesting option.

"Currently, we are looking at two potential PSRU merger candidates; namely, a marijuana cultivation factory in Ontario, Canada and a medical marijuana corporation located in the United States. The interim management is of the opinion that these mergers will bring the greatest return and restore shareholder values to the company. Both candidates show tremendous potential. Current interim management is vigorously working towards finalizing one of these two potential merger prospects." Source

In addition, a restructuring is also planned; an expert legal team in Chicago, Illinois, has been hired and is working with PSRU:

"The current interim management is aware that some shareholders have raised a concern that the Delaware State filings are way overdue with some $200,000 due in franchise tax filings. This sum, due and the relatively small size of PSRU, places PSRU in peril. The interim management is well aware of this and is taking legal restructuring steps, with an expert legal team in Chicago, Illinois. The complex restructuring will allow PSRU to restructure and settle the Delaware fees / claims and reorganize in Wyoming. The surviving entity in Wyoming has already been incorporated and awaits the finalization of the Delaware restructuring." Source

ConclusionThe new initiatives of the company seem to have excited the market. First of all, a law firm is working for the new CEO, addressing all the issues, and debt matters. In addition, a merger with a cannabis company is expected. This is a good news. Finally, a restructuring is expected as the company is working with an expert from Chicago. To sum up, a lot of future developments are expected from this company. We need to stay alert. Market participants can visit psruturnaround.com, or subscribe to our newsletter for the latest information on PSRU.We will be updating our subscribers as soon as we know more. For the latest updates on PSRU, sign up below!Image courtesy of Rude R via FlickrDisclosure: We have no position in PSRU and have not been compensated for this article.