Dear Shareholder,
Let me start by wishing you and your family “good health”. Everyone here, our entire PNTV family, is safe and doing well during this pandemic.
When disaster strikes, opportunity also presents itself. For me, that opportunity has been the time to look around and reflect on what is truly important. In my case it has been health and family. Like most of you, I’ve been working from home, with only occasional visits to the farm in North Las Vegas. I have had time to call and reconnect with friends I haven’t spoken to in a long time, go through clutter, read a book, and spend time in the kitchen learning new recipes.
The other opportunity I’ve had is time to just “think”… think about the economy, our company and the state of affairs in our Las Vegas and Jujuy Argentina operations. Let me give you a general update and share where I see the Company going both short and long term.
In January I put out an optimistic shareholder update focused on the fact that in 2019 we laid down a great foundation to allow us to soar into 2020 with positive cash flow from North Las Vegas and harvest our first crop in Jujuy. I also updated shareholderson our Nevada class action dispensary lawsuit, financial filings and more.
Those who know me personally, or have followed the company, know I’m the ultimate optimist. As you’ll read, I remain so now. Regardless of the delays this pandemic has put in all our lives, I can assure you… “The Glass is MORE than Half Full”.
The Cannabis Industry
As is typical with over-optimism in the early stages of a new industry, most cannabiscompanies have been overvalued, trading at market caps far beyond their actual value. Beginning in the fall of 2019 that began to change, just like the dotcom bust for those of you old enough to remember.
Many of the companies that suffered the worst had used overpriced stock to acquire overpriced assets, hired far too many people, and built a bloated overhead to give the market perception they were doing great. Now, they are suffering with far more liabilitiesthan their revenue can support. Keep in mind, federally cannabis is still illegal in the U.S. Every state, where it has been legalized, has imposed burdensome regulations and taxes that provide few, if any, of these companies a business model for long-term success. Now comes this pandemic. Because it is federally illegal, cannabis companies are not just struggling, they don’t even qualify for any of the $2.5+ trillion stimulus money.
In PNTV’s situation, we got caught in a market sell off and margin calls. I hope all of you, like me, have retained faith in the company and believe our stock is extremely undervalued. As I’ll discuss below, and as I firmly believe will be shown in the near future, I hope you have not been forced to sell.
PNTV/ GLFI market position and value
PNTV has two main business focuses: North Las Vegas and Jujuy Argentina. Both operations are being run lean, without over–committing overhead and resources. While we can certainly use additional capital to more rapidly take advantage of the tremendous opportunity we’ve created in Argentina, and have committed to do so through a Private Placement Memorandum offering investors an extremely attractive opportunity to participate in what we are confident will be a huge success in both the near and long term, we believe we are much better positioned to weather this current storm than 90% of the other cannabis companies.
North Las Vegas
Earlier this year I announced that Green Leaf farms North Las Vegas was producing an amazing flower product, testing at 26% and 29% THC with little detection of bacteria and pathogens and announced selling a substantial number of pre-rolls. Of equal importance, we have also finally reached the stage of “continual harvest”, meaning every few weeks, year-round, ensuring consistent, fresh product.
As you can imagine, with every casino closing, Las Vegas has essentially ‘shuttered its doors”. Until that changes market demand has declined an estimated 80%.Consequently, we quarantined our cultivation and production team for 3 weeks, keeping only a skeleton crew to ensure our plants are watered and remain healthy. I’m pleased to announce everyone is now back to work and product is being stockpiled until the market reopens over the next few months. So, even though it is a major setback, we still expect the same total revenue, just at a later time. For those unfamiliar with the industry, the quality of our product I outlined above is extremely high, meaning great flower like ours will be at the front of the line as demand returns.
Jujuy Argentina
This week marks an important milestone for your company — our first test plots are being harvested! These test plots were created to evaluate the environment and analyze which genetic seed strains perform best. Our team on the ground in Jujuy has now had the opportunity to experience winter, spring and summer in Jujuy and reportthey are extremely pleased and excited about what they’ve seen.
As those of you who follow the company know, we have retained the cultivation experts at Grow Smith to oversee these start-up operations. The Grow Smith team on the ground in Argentina is highly experienced in operations of this type and will be able totake what we’re learning from these first test plots and quickly scale the project to production levels.
I also want to take this opportunity to tell all our shareholders how very proud I am of Shamol Vyas, the President of Grow Smith and his associate, Shawn Gray. Shamoland Shawn have been sanitizing our cultivation facility in North Las Vegas with a product and proprietary sanitation protocol they developed called Gard’nClean. Their Gard’nClean product and protocol is now being used to kill Coronavirus and decontaminate cruise ships, Jails, schools and more. If you have a need, or are interested in learning more about their product, visit their website, www.gardnclean.com.
When looking at the glass half full in Jujuy, it is critical to know that we started Green Leaf Farms as the “first mover” in Argentina, a country of 44 million. Just as important is the fact we believe we are one of only six commercial producers of full spectrum cannabis on the entire continent of South America. We believe GLFI has more than ayear head start on any serious potential competitors. Let me be very clear to what that means to you, our shareholders… There are 38 million people and over 7000 growersin California and 37.5 million people and 1500 growers in Canada. Argentina has a population of 44 million and we are the only grower.
Filings
One positive of the pandemic is that it has given our accountant time to finish the company accounting for 2018 and has now turned it over to the auditors. He is now focused on completing 2019. As communicated earlier, completing this accounting has been challenging due to the shape it was left in by the prior accounting firm. Once caught up we are committed to keeping quarterly reports current. I will not give any predictions as to when we will be current, but am bullish we are much closer. Although 2018 and 2019 financial results are largely irrelevant to where the company is today, it is important that they be completed so we can get current with our filings. That will allow more firms to be able to trade our stock and enable the stock price to then reflect what we expect to be dramatically improved future quarterly reports.
Class Action State Dispensary Lawsuit
There is little to report. The trial was scheduled to begin on April 20. Now, all courts are closed so we’re unsure when it will take place.
In closing, I just once again want to wish good health to you and your family. As I’m sure you now know, I am also extremely positive about the health and future of your company. As I mentioned earlier, GLFI Argentina is moving ahead very rapidly and we are raising additional capital from ‘accredited investors’ to move into the production stage. Attached find a draft copy of the “Business Overview” to be included in the offering. If you are interested in more detail contact me for a copy of the Private Placement Memorandum.
As Always, I’m glad to hear from shareholders and will respond as quickly as possible.
Sincerely,
Mark Bradley, CEO
Greenleaf Farms International First Harvest in Jujuy Argentina








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