For Immediate Release
PLAYERS NETWORK, INC. SHAREHOLDER 2019 YEAR IN REVIEW AND 2020 OUTLOOK
Green Leaf Farms International is raising capital in their Founders Round.
LAS VEGAS, NV (February 5, 2020) Player’s Network, Inc. (OTCQB: PNTV), a rapidly growing international company in the adult-use and medical marijuana industry, with operations in Las Vegas, Nevada and Jujuy Argentina, published a Shareholder update from CEO Mark Bradley.
2019 was, as Dickens said, the worst of times and the best of times. It was a year of struggles. It was also a year of great accomplishments. We laid tremendous groundwork for the future prosperity of our company.
Let’s address our struggles and accomplishments.
After 28 years as a fully reporting public company, we struggled to get our 2018 and 2019 audits and financial statements current due to unprofessional conduct by our prior accounting firm, forcing us to sue them for damages. We are targeting the end of Q1 2020 to get current and are determined to stay current every quarter thereafter.
Not having timely filings resulted in us getting an OTC Stop Sign, creating the perception that something is wrong with our company other than not filing on time. I assure you that is not the case.
Yes, it has taken longer than anticipated for our cannabis operations to begin generating revenue. As those who follow the cannabis industry are aware, the time it takes for companies to get their cultivation facilities up and running was severely underestimated industrywide. After our initial cultivation team failed to grow the high-quality cannabis crop profitable distribution to dispensaries requires, we fired them in early 2019, then hired GrowSmith to retool our 27,000-square-foot North Las Vegas facility. GrowSmith developed new genetics, cultivation and extraction methods, and sanitation protocols to optimize the capabilities of our facility.
As of late November 2019, as measured by independent lab tests, we began harvesting some of the highest quality, premium cannabis in the State of Nevada. The lab results revealed substantial THC levels and total cannabinoids in excess of 30%, stating it is the cleanest cannabis they have tested in the past four years!
By the end of Q1 2020, North Las Vegas is forecast to be operating cash-flow positive on an ongoing basis supported by a perpetual harvest of high-quality cannabis products. We are now selling our flower at a price above the industry average and continue to scale up the amount of flower we harvest every month. This is a huge milestone about which we’re all thrilled.
Equally important to future profits is the creation of an exciting second revenue stream! We recently signed an agreement with Industry Extracts, and have set up an infused gummy production line. We are on schedule to roll out a proprietary Green Leaf Farms branded gummy product line in the next 30 days.
As many of you know we are a participant in a class action lawsuit against the state of Nevada contesting the corrupt way they handled the issuing of new dispensary licenses. There is significant evidence that the state conducted unfair licensing practices. Settlement negotiations have begun, and an April 20th (4/20 – imagine that) trial date has been set. We are hopeful we will receive one or more dispensary licenses so we can become vertically integrated in Nevada.
The “Big News” that will truly differentiate us from every other cannabis company, is the formation of Green Leaf Farms International, Inc. (“GLFI”) as a PNTV subsidiary. GLFI will manage our unique, unprecedented 30-year Joint Venture Agreement with Jujuy Argentina’s provincial government for a massive tract of prime agricultural land with ideal year-round growing conditions to cultivate cannabis.
In early 2018, massive state, city and local taxes, onerous compliance requirements, restrictive regulations and overhead costs made management realize that the US and Canada were difficult environments in which to operate a profitable cannabis business. This reality has been clearly reinforced by the stock market’s devaluation of high-profile cannabis companies over this past year.
90% of these cannabis companies lost an average value of 65%, which is what I suspected would happen. The irony is that most of these companies have valuations 10-to-100-times higher than PNTV’s, yet they have only a fraction of PNTV’s upside potential based on assets we control. We believe PNTV is grossly undervalued, and once investors understand the scope of our positioning in Argentina, the value of the joint venture we entered into with the government there, and the letter of intent we have already signed for the purchase of cannabinoid compounds from our operation there, our market value should increase exponentially.
PNTV has evolved from one of several cannabis companies with a license and growing operations in the state of Nevada into a company positioned to become a dominant worldwide supplier of the largest quantity of the broadest spectrum of high quality, low cost cannabinoid compounds in the world.
After tracking the explosive growth of the CBD industry, and the number of large medical, pharmaceutical, cosmetic, beverage, and other consumer products companies marketing cannabis-based products, I came to believe that cannabis and the cannabinoid compounds extracted from cannabis would become commodity-like products. And, these large companies would not become farmers, producing and processing their own cannabinoid compound ingredients. Instead, they would look to purchase the highest quality, lowest cost ingredients just as they do for every other product they produce.
Predicting that, I embarked on a worldwide search for the best possible country to partner with in order to dominate this market. As shareholders, I’m sure you are aware that the location I determined best suited our company’s needs was Jujuy, Argentina. I negotiated and signed on behalf of GLFI a Joint Venture with the Jujuy, Argentina government that includes the establishment of an adjacent tax-free zone for processing and exportation of cannabis-derived products without the oppressive taxation or restrictive regulations prevalent in the U.S. and Canada.
Just as important, unlike the highly restrictive genetic requirements that limit what can be legally grown in much of the U.S. and Canada, our Joint Venture Agreement allows GLFI to grow and extract oils from cannabis, not just hemp. Hemp primarily produces CBD oil. Cannabis, however, contains broad spectrum oils from over 113 cannabinoid compounds that can be extracted in various combinations. CBD extractions from hemp has led to over-saturated markets, resulting in a drop in the wholesale price of CBD Isolate from an average of $6,000 per kilo last year, to under $1,900 per kilo this year.
Unlike growers restricted to hemp, the freedom to grow cannabis genetics of our choice will enable us to produce massive quantities of broad-spectrum oils that can be manufactured into several rare cannabinoids such as CBG, CBN, CBGA, CNC, THCA. These cannabinoids are currently selling for between $17,000 to $75,000 per kilo, or per liter if they are in powered form. The production and worldwide distribution of these rarer cannabinoids can be exceptionally profitable due to multiple promising new medicinal cannabis-derived products requiring a combination of some of these cannabinoid compounds that GLFI is uniquely positioned to produce and distribute.
To bring PNTV shareholders up to date on the progress of our Jujuy Argentina Joint Venture, in June 2019, after six months of due diligence and negotiations, GLFI was officially approved by the United States and Argentine governments to become the first company in the world to legally export/import cannabis seeds with the exceptional genetics of our choice between those countries.
After receiving these genetically superior seeds in Jujuy, our project got underway. Our initial cultivation campus has grown to 46,000 sq. ft made up of nine greenhouses, a shade and net house, propagation chamber, power and water installation, irrigation, security systems, fencing, and the growth of 800 mother plants. (Please watch our video showing the current status of the Jujuy operation; https://youtu.be/_Ojhf0i35WY)
As mentioned, to best serve our shareholders we formed Green Leaf Farms International, Inc. (GLFI) as a wholly owned subsidiary of PNTV. We are using that subsidiary to operate the Jujuy facility and to raise the capital to properly fund it. GLFI does not own any U.S. assets and will operate entirely outside the United States. We structured the company this way because US national exchanges like NASDAQ and The New York Stock Exchange won’t allow the listing of cannabis companies that operate in the US, but they do allow the listing of companies that hold foreign assets such as the business we are operating in Argentina. This corporate structure will allow us to list GLFI on major U.S. exchanges. As a subsidiary of PNTV, the revenues, profits, and/or market value of GLFI will be reflected on PNTV’s financial statements and can be expected to add significant value to PNTV’s share price and market value. In the event GLFI becomes a public traded company, we will also have the ability to distribute a portion of GLFI shares to PNTV shareholders, thus maximizing the total return for PNTV shareholders.
We have a current 506-Founder’s Round offering for GLFI to raise $4.2 million. This offering is open to all PNTV shareholders and accredited investors who have an existing relationship with the company and will have the opportunity to receive a 200% preferred return, plus additional common stock ownership. Please note that while this offering is still open to individual investors it may soon close due to serious interest from institutions who may fully fund the project.
As we expect our first Jujuy harvest by mid-April, and shortly after starting a perpetual, year-round growing cycle. Based on this timing we expect PNTV to begin reporting substantial revenue growth provided by GLFI and North Las Vegas in 2020.
As an indication of how powerful, in demand, and potentially profitable our Argentine cannabis commodity product concept is, GLFI recently filed an 8K announcing the signing of a Letter of Intent with Amber Medical to purchase CBD/cannabis products produced by GLFI in Jujuy PRIOR to the first crop even being planted. First delivery is anticipated to take place in May or June 2020. Due to the quality, quantity, and price at which we can deliver the desired oils and distillates other purchase commitments are being strategically negotiated and can be expected to be announced in the near future.
It is important to note that our Argentina operation has “opened doors” to additional business opportunities throughout South America. In December, Brazil, adjacent to Argentina, with a population of 210 million people, announced plans to begin a medical marijuana program. Brazil also announced that it will not legalize cannabis cultivation but will rely only on imported products. Currently cannabis is only grown legally in three South American countries: Columbia, Uruguay, and at our farm in Argentina. Columbian and Uruguayan cannabis is primarily low quality produced for recreational purposes with little, if any, quality control. To the best of our knowledge, our GLFI operation is the only one in South America capable of producing large quantities of high quality, lab tested, consistent cannabinoid compounds required for medicinal development and use. This elevates GLFI to a unique, advantageous position to firmly establish itself as a ‘first mover’ to serve and dominate this massive South American market, in addition to global markets.
Because what I have just outlined is so significant and so important to the future of the company and the entire industry let me quickly review the three most critical elements of our Argentine Joint Venture with the provincial government:
- We escape the massive taxes and burdensome regulations and controls imposed in countries like the United States and Canada. Note we were able to negotiate such favorable terms because, unlike the U.S. government, which is focused on tax revenue and controlling distribution, the provincial Argentine government is focused entirely on creating jobs and economic development. Therefore, they were amenable to making doing business there as easy and profitable to us as possible.
- Located in the far north of Argentina, near the equator we are blessed with year-round, ideal growing conditions with abundant water, prime land, and a low cost agriculturally oriented work force. Recent reports are that greenhouse growth is not only very expensive and space limited, but also that indoor grow lights are adding as much as a 10% additional burden on the power grid making our Argentine operation even more attractive.
- Our ability to grow the genetics of our choice simply cannot be underestimated. Understanding the medicinal value and other commercial uses of the rarer cannabinoid compounds is in its infancy. But, what is known is that the synergy of several compounds working together is vital and that only an operation such as ours in Argentina, unrestricted in our ability to customize the most desirable mix of cannabis genetics and with the dedicated land of (52 square miles) to grow the biomass to harvest and extract commercial quantities of some of the most rare compounds will be in a position to serve this market.
What will that mean for PNTV investors? It means that based on the terms of our Joint venture contract with the Jujuy government, few, if any, other companies in the world will be able to compete with us to produce large, commercial quantities of all 113 cannabinoid compounds. As first movers and the lowest cost producer, GLFI will be positioned to undercut our competitors, still make a profit, and set the world market commodity price on Cannabinoid based flower, oils, and isolates.
I think you can clearly see why I’m so excited and optimistic about our prospects in 2020. Despite 2019’s struggles, we have continued to issue 8Ks and press releases describing all material activities to our shareholders and the public. While our stock price and market cap has dropped significantly, they do not come close to accurately reflecting the company’s value and future profitability based on the assets we hold, and the propitious opportunities available to us that should lead to significant market corrections more accurately reflecting the company’s worth.
I want to say thank you to all our shareholders, especially those that have stuck with us through these challenging times. Please know that I am committed to doing everything in my power to justify your faith in me, and to add significant dollars to your stock portfolio.
Mark Bradley, CEO
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. Any offers of equity securities will be made only by means of a private offering memorandum.
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About Player’s Network (stock symbol PNTV)
Player’s Network is a rapidly growing company in the marijuana industry with licensed grow operations in Las Vegas, Nevada and Jujuy, Argentina. Over the last 2 years the Company has gone from a development stage company to a fully operational cannabis business. The business strategy is to grow by acquisitions, joint ventures, and new market opportunities in the US and Internationally. Cannabis is legal for medical use in 30 States plus DC. It is legal for adult recreational use in 9 States plus DC. The entire country of Canada legalized marijuana adult use in October 2018. The Company believes this trend of legalization of marijuana in the US and worldwide will continue and create tremendous growth opportunities for shareholders.
For more information please visit www.PlayersNetwork.com
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Information about Forward-Looking Statements
This press release contains “forward-looking statements” that include information relating to future events. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: inability to gain or maintain licenses, reliance on unaudited statements, the Company’s need for additional funding, governmental regulation of the cannabis industry, the impact of competitive products and pricing, the demand for the Company’s products, and other risks that are detailed from time-to-time in the Company’s filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting Players Network, please refer to the Company’s recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Player’s Network Contacts:
Interview Requests & Media Inquiries with Management
David Klepinger, Investor Relations Manager