Kultura Brands Exceeds Original 5.0 Billion Share Retirement Goal, Significantly Reduces Preferred H Overhang

Rhea-AI Summary

Kultura Brands (OTCID:LTNC) announced it exceeded its prior target to retire 5.0 billion common shares, having retired 5.335 billion common shares to date and substantially reduced the Preferred H overhang.

The company reported it reduced Preferred H from 61 to 10 shares, eliminating the equivalent of ~5.1 billion common shares on an as-converted basis. Initial capitalization cited 22.04 billion common shares outstanding and Preferred H convertible to 6.1 billion common shares on October 24, 2025.

Management said share issuances will continue as needed to fund operations while executing a nationwide rollout of its Adios Spirits beverage through CKS Distro.

Positive

• Retired 5.335 billion common shares to date
• Reduced Preferred H from 61 to 10 shares
• Eliminated ~5.1 billion common-share conversion overhang

Negative

• Company will continue share issuances to fund operations, implying ongoing dilution
• Preferred H remains at 10 shares convertible into common shares

JACKSON, WYOMING / ACCESS Newswire / December 23, 2025 / Kultura Brands, Inc., formerly Labor Smart, Inc. (OTCID:LTNC) (the "Company"), announced today that it has successfully exceeded its previously stated goal of retiring 5.0 billion common shares, while substantially reducing its Preferred H share overhang. These actions meaningfully strengthen the Company's capitalization and support its strategic growth objectives heading into 2026. As reported at the beginning of this initiative on October 24, 2025, we had 22.04 billion common shares outstanding and 61 shares of Preferred H stock, each convertible into 100 million common shares, for a total of 6.1 billion shares on an as-converted basis.

Over the past two days, the Company completed a series of transactions that included the retirement of 1.55 billion common shares and the conversion of 11 additional Preferred H shares, equivalent to 1.1 billion common shares upon conversion. Since October 24, 2025, the Company has completed multiple share retirements and Preferred H conversions, reducing the number of Preferred H shares from 61 to 10. This represents the elimination of the equivalent of 51 Preferred H shares, or approximately 5.1 billion common shares, from potential future conversion. In addition, the Company has retired a total of 5.335 billion common shares to date, exceeding its previously disclosed target of retiring 5.0 billion shares.

Brad Wyatt, Chief Executive Officer of Kultura Brands, commented, "Reducing both outstanding common shares and the Preferred H overhang has been a priority, and we are pleased to have exceeded our previously stated retirement target. These actions reflect disciplined capital management while continuing to meet the Company's operational obligations through strategic share issuance to clean up the past obligations and fund future operations with capital raises."

Wyatt further noted, "We believe our execution this year has meaningfully strengthened the Company, and we are entering 2026 with clarity, discipline, and momentum." The Company expects ongoing share issuances to continue as needed to fund operations until the business can sustain itself through operating cash flow, all while executing a massive nationwide rollout with Adios. "Maintaining strategic cap table reform while obtaining access to capital through share issuance remains a necessary balancing act as we continue executing our business plan," he stated.

Positioned for Growth

Kultura Brands continues advancing its beverage portfolio, highlighted by its flagship ready-to-drink alcoholic beverage brand, Adios Spirits, which is being brought to market through its partnership with CKS Distro, leveraging best-in-class manufacturing and distribution capabilities to support national expansion.

About Kultura Brands

Kultura Brands, Inc. (OTCID:LTNC), headquartered in Jackson, Wyoming, is a diversified beverage and brand platform focused on developing, marketing, and distributing consumer beverage products, including its flagship ready-to-drink alcoholic beverage brand, Adios Spirits. The Company partners with best-in-class manufacturers and distribution networks to scale high-demand beverage brands nationally and internationally.

Forward-Looking Statements (Safe Harbor)

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's capitalization table, future retirement or issuance of shares, to include unforeseen commitments that may require additional share issuance to include setting up reserves and/or issuances of shares and/or the increase of authorized shares, and/or the use of preferred H shares up to and beyond the 100 preferred H shares authorized. To protect the company from ongoing litigation and continued cash flow constraints, all or some of the above-mentioned items may be adjusted again to support the company's financial health. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to update or revise any forward-looking statements except as required by law. This press release includes statements regarding the Company's intentions and strategic direction. Although the Company has taken the steps described, many of the referenced matters (including the timing of sales and product delivery) are subject to risks and uncertainties. There can be no assurance that requests will be approved within the timeline or in the manner described. The Company assumes no obligation to update or revise any statements in this release, except as required by law. This press release contains forward-looking statements. In addition, from time to time, our representatives or we may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including our financial performance and projections, revenue and earnings growth, and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: (i) potential failure to meet projected development and related targets; (ii) changes in applicable laws or regulations that may impact our products and business; and (iii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with OTC Markets. These and other factors may cause our actual results to differ materially from any forward-looking statement. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release, and other statements made from time to time by our representatives or us might not occur.

Investor & Media Contact
Kultura Brands, Inc.
Email: IR@KulturaBrands.com

SOURCE: Kultura Brands, Inc.

View the original press release on ACCESS Newswire

FAQ

How many common shares has Kultura Brands (LTNC) retired as of December 23, 2025?

Kultura Brands reported it has retired 5.335 billion common shares to date.

How did Kultura Brands reduce the Preferred H overhang on December 23, 2025?

The company converted 11 Preferred H shares and reduced Preferred H from 61 to 10 shares, removing ~5.1 billion common-share conversion potential.

What was Kultura Brands' common share count before the retirement program (October 24, 2025)?

The company reported 22.04 billion common shares outstanding on October 24, 2025.

Will Kultura Brands (LTNC) issue more shares after the retirements?

Yes; management said ongoing share issuances will continue as needed to fund operations until cash flow sustains the business.

What impact does the Preferred H reduction have for LTNC shareholders?

Reducing Preferred H lowers potential future conversion dilution by about 5.1 billion common-share equivalents.

How is Kultura Brands financing its national rollout of Adios Spirits (LTNC)?

The company said it is balancing cap table reform with access to capital via strategic share issuances while partnering with CKS Distro for distribution.