LOS ANGELES, Jan. 27, 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, announced today that it has executed a management and consulting agreement with the Company’s consulting client, Nature’s Treatment of Illinois, Inc. (“NTI”). NTI was awarded one of approximately 60 possible medical cannabis dispensary licenses in Illinois. After the Company assisted with a rigorous conditional registration approval process and recent inspection, NTI is now able to engage in the distribution of cannabis for medical use in Illinois and will be the only one in Illinois’ District 7. The Company is informed that the dispensary will be open for business within the next couple weeks.
On January 25, 2016, the Company, NTI and Nature’s Treatment of the Quad Cities, LLC (together with NTI, the “Client”) entered into a new consulting agreement pursuant to which the Company will provide the Client with its industry first inventory weighing, product securing, product display, and point-of-sale system dubbed the “Top-Shelf” at NTI within the first half of 2016. The Company will also advise the Client regarding ongoing business activities and dispensary license renewals. The agreement will become effective following a vetting process by the Illinois Department of Financial and Professional Regulation. The Company expects to receive vetting approval on or before June 1, 2016. Matthew Feinstein, who is a principal of the Client will relinquish his board position with Client and any equity in Client’s operations upon the agreement becoming effective. Thereafter, the Client will pay the Company a consulting fee equal to the lesser of 5% of NTI’s gross profit or 15.18% of the after-tax distributable income of NTI and Nature’s Treatment of the Quad Cities, LLC. The agreement has a term of five years and, subject to certain conditions, is automatically renewed for successive terms, but if the Company is not in breach of the agreement and the agreement is terminated by the Client at the end of the initial five year term, the 5% royalty payment will convert to 15.18% equity.
“We look forward to having Pineapple Express continue to help us navigate the medical cannabis industry,” stated Matt Stern, Principal Officer for NTI. “They really helped us through every nuance in the registration and inspection process with the State of Illinois and for that we are grateful.”
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.