LOS ANGELES, Jan. 21, 2016 (GLOBE NEWSWIRE) -- PINEAPPLE EXPRESS, INC. (OTCPink: 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, issued the following shareholder update letter from Matthew Feinstein, CEO and Chairman.
To our valued shareholders:
Thank you for your continued support. I am pleased to provide an update on our excellent progress since October 2015 and discuss our ongoing milestones, pending acquisitions, and further growth initiatives.
Pineapple Express continues to achieve substantive progress as we implement and execute our plans to create and capture shareholder value. We are ardently pursuing our expansive growth and rollout program, leveraging our integrated platform while capitalizing on the diverse and growing opportunities for expansion throughout the United States.
Our business model focuses on developing, enhancing, and/or expanding existing and newly formed infrastructures. Our strategy is to quickly develop recurring and easily replicable revenue sources, while avoiding large upfront investments in infrastructure, escalating payroll costs associated with expansion, and the years of initial losses often typical of start-up companies.
As I indicated in my last update, we believe that our unique business model, exclusive proprietary technology, expertise of our employees and consultants and our key industry contacts, represent strong competitive advantages for Pineapple Express. We are pursuing a business model that we strongly believe positions us to capitalize on the evolving dynamics of the high-growth cannabis market space both before and after cannabis becomes federally legal. Currently, we are targeting opportunities in two distinct, yet symbiotic and complementary markets, namely, the Licensed Medicinal Dispensary and Adult Use Cannabis Retail Market and the Licensed Cultivation, or Growers, Market. We specifically provide capital to our canna-business clientele in these markets and we also purchase and lease real properties to these canna-businesses in states where canna-businesses are legal. In all cases, we offer consulting and technology to develop, enhance and/or expand existing and newly formed infrastructures and canna-businesses and we also offer high visibility and strongly branded product licensing.
We continue to make significant strides in creating shareholder value through our significant achievements in branding, management team and staff additions, business development, real property acquisitions and the introduction of our proprietary “Top Shelf” display safe system, which we anticipate rolling out to the market during the first quarter of 2016.
RECENT ANNOUNCEMENTS AND MILESTONES
I am excited to report on our recent developments and the milestones we have achieved. Below is a summary of our announcements since our last update:
- On November 3rd we launched our corporate website of www.pineappleexpress.com.
- On November 19th we announced a Conditional Use Permit approval for commercial cultivation on behalf of our consulting client, Clonenetics Laboratories Cooperative, Inc.
- On December 1st we named Theresa Flynt, formerly of Hustler Hollywood, as VP of Business Development.
- On December 21st we announced the pending acquisition of THC Industries, Inc., including the THC.com website and THC trademark.
- On January 5th we announced the acquisition of an additional 3.78 acres in Desert Hot Springs, CA and a rental strategy of leasing 125,000 square feet of warehouse space on a combined 7.56 acres.
- On January 14th we announced that our dispensary consulting client in Illinois received a conditional registration approval for its dispensary and announced our negotiations to receive rental revenue and possible other income streams from this client.
I would now like to provide further details on some of the pending matters referenced above.
First, we anticipate closing on the THC transaction by month’s end. We look forward to modernizing that brand and making it into the juggernaut we feel it represents.
Second, we are again expanding our Desert Hot Springs footprint by purchasing an additional 1.26 acres of land directly abutting the 7.56 acres currently in escrow or already purchased. We are actively interviewing tenants to fill the 9 vacant spaces and anticipate filling all vacancies within the next 6 months. We will then commence the process of expanding the Conditional Use Permit held by our current tenant client and applying for separate regulatory permits for our tenants from the City of Desert Hot Springs. The new plan envisions 150,000 square feet of rentable warehouse space over 8.82 acres.
Third, we are finalizing a consulting agreement with our dispensary client in Illinois to receive 5% of their revenue in exchange for our ongoing consulting services and providing our “Top-Shelf” Safe Display System for use in their dispensary.
We are also very pleased to announce that the company succeeded recently in raising $455,000 of the previously announced one million dollar offering. Management has closed the offering as we believe we have adequate capital resources to fulfill our needs at this time.
We are evaluating numerous opportunities at this time, which support our model and growth initiatives and we will continue to keep you abreast of ongoing developments, as appropriate. As always, we thank you for following our progress and look forward to bringing our shareholders the most dynamic and cutting-edge canna-business projects available in the sector today.
Matthew Feinstein, CEO and Chairman, Pineapple Express Inc.
About Pineapple Express:
Headquartered in Los Angeles, CA, 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.
Company Contact: Matthew Feinstein CEO/Chairman/Co-Founder Pineapple Express, Inc. 1901 Avenue of the Stars, 2nd Floor Los Angeles, CA. 90067 Office: 877-310-PNPL Investor Relations Contact: Scott Arnold CorProminence LLC 377 Oak Street Garden City, NY 11530
Source:Pineapple Express, Inc.