Kali, Inc. (OTCPK:KALY) announced entering negotiations on the spinoff of the company's agricultural CBD extraction business. The spinoff is part of KALY's plans to consolidate its business structure and focus on its Cannabis Biopharmaceutical Technology. KALY has a U.S. Patented Cannabis Extraction Process and is developing treatments for various medical conditions.

The technology has been valued at $50 million in conjunction with a recent acquisition offer that KALY management passed on. In addition to spinning-off its agricultural CBD extractions business, KALY has entered into discussions with Puration, Inc. (OTCPK:PURA) regarding PURA's possible acquisition of KALY's CBD confection assets. The third-party KALY is negotiating with on the spinoff of the agricultural CBD extraction business is not yet disclosed, but the party is a public company and a term sheet agreement is anticipated within the next two weeks.