Los Angeles, Nov. 19, 2015 (GLOBE NEWSWIRE) -- Pineapple Express (OTC Pink: PNPL) ("the Company"), a publicly traded company that offers cannabis industry consulting, technology, investments, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, announced today that its canna-business tenant and consulting client, Clonenetics Laboratories Cooperative, Inc., was approved for a conditional use permit ("CUP") by the City of Desert Hot Springs at last night's city council meeting. The Company's wholly owned subsidiary MJ Business Consultants provided key application assistance to Clonenetics, which spanned five months and included working closely with architects, city planners, engineers, attorneys, and industry experts.
On September 8, 2015 the Company announced that it had executed a purchase of three acres of real property, including 23,250 square feet of warehouse space, in the City of Desert Hot Springs pursuant to a rent-to-own agreement. The Company subleased this property to an experienced canna-business tenant, Clonenetics, and facilitated proper licensing of the cannabis cultivation facility by having the Company's consulting subsidiary assist the tenant with obtaining the proper regulatory approvals from the City of Desert Hot Springs. Remodeling of the premises is almost complete with Clonenetics' first rent payment due on January 1, 2016. The sublease has a term of ten years, which may be extended for an additional five years at the option of the parties. The sublease provides for monthly rent of $49,000 per month in year one, $98,000 per month in year two, and $122,500 in years three through ten, although actual rent received cannot be guaranteed.
"Our performance in Desert Hot Springs for our consulting client and tenant highlights our Company's wealth of industry knowledge and business acumen that we feel is extraordinary", stated Matthew Feinstein, CEO and Chairman for the Company. "This CUP approval works well with the newly established state regulations in California that allow canna-businesses to legally operate. As our team at Pineapple Express had forecasted internally, California has stepped out of the gray and into the green as it pertains to the cannabis industry and our Company is positioning ourselves beautifully."
"I am a happy Pineapple Express success story", stated Dan Osborne, CEO and Founder of Clonenetics. "From the time I first met with the principals of Pineapple Express, the acceleration of my company's growth and success has been exponential. Their level of professionalism and attention to detail was excellent and because of their organization and experience I am happy to state that I am one of the very first recipients of CUP approvals for cannabis cultivation in Desert Hot Springs and I have Pineapple Express to thank for that."
About Pineapple Express
Headquartered in Los Angeles, Calif., Pineapple Express is a publicly traded company that invests in, expands, and brands existing and newly established canna-businesses through expert consulting and cutting-edge technology. We provide capital to our canna- business clientele, lease real properties to canna-businesses, and provide consulting and technology to operators within the cannabis industry. We intend to create a nationally branded chain of company owned cannabis retail stores under the "Pineapple Express" name, as soon as federal laws allow. As long as cannabis remains federally illegal our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology, and branding/retail concept support services. Home to some of the most experienced and well-connected minds in the business, Pineapple Express is at the forefront of the legal cannabis industry.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. More detailed information about the Company is available at www.otcmarkets.com/stock/PNPL/quote. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
Matthew Feinstein CEO/President/Chairman/Co-Founder Pineapple Express, Inc.
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