American Green Plans to Manage Nipton for Ten Years and Anticipates Paying Delta Shares to Qualifying ERBB Shareholders as a Dividend
PHOENIX, AZ , March 15, 2018 (GLOBE NEWSWIRE) -- Today American Green, Inc. (ERBB:OTC) has announced that it has agreed to transfer its holdings in Nipton, California to Delta International Oil & Gas, Inc. for consideration totaling more than $7.73 Million.
Under the Agreement, American Green will manage Nipton and associated projects for 5 years with a 5-year option. Delta will seek to acquire additional properties subsequent to the Nipton acquisition. Both parties intend for American Green to manage those properties as well. At closing, Delta will assume approximately $3.73 Million in American Green debt, and issue $4 Million in Delta Series A Secured Convertible Preferred Stock (“Series A Stock”), convertible to 160,000,000 shares of Delta Common Stock. The Series A Stock will pay a 5% annual dividend, in stock or cash and will be secured by a lien against the Nipton properties.
According to David Gwyther, American Green’s Chairman, “This transaction will relieve American Green of the on-going expense of improving Nipton. That responsibility will now fall upon Delta, giving Nipton the ability to access cheaper capital through a fully reporting company, including the ability to file registered offerings.”
“American Green can now expend less of its energy on capital raising, and focus on implementing the revenue-generating components of Nipton, and its other investments, along with many new, and exciting projects on the horizon,” Mr. Gwyther continued.
“I believe that this will be a win-win situation for American Green and our shareholders. After the Series A Stock is fully registered with the SEC, we plan to pay, as a dividend to qualifying American Green shareholders, a portion of the Series A Stock. Qualified shareholders would then be entitled to receive the 5% annual dividend attached to any Series A Stock shares that they acquire through the anticipated American Green dividend,” he concluded.
Delta is a current and fully reporting company listed on the OTCQB Exchange. (https://www.otcmarkets.com/stock/DLTZ/quote). Escrow is expected to close, with completion of all post-execution document deliveries, within the next 7-10 days. American Green shareholders should expect more news regarding the final deliveries shortly after the closing.
Nipton, established over 100 years ago (www.nipton.com), is one of many towns throughout the United States that has seen better days; maybe the mill or factory closed and took its production overseas, or perhaps the mineral mine went dry. It has been American Green’s vision (one embraced by Delta) to use Nipton, California as a revitalization model for other near-deserted small towns across America while retaining as much of the town’s and region’s natural charm, a directive that is paramount to American Green.
It should be noted here that while some of the initial news stories the Nipton purchase generated in the press indicated the purchaser’s intent to immediately begin leasing land to cannabis growers (or even growing cannabis itself,) that is not and never has been the company’s intent for the area. Only when, and if, American Green (as manager) and Delta (as owner) receive full approval from the relevant controlling authorities, would Nipton move, responsibly, into the cannabis product development sector. As the Nipton Project develops in the future, the company will continue to interact with all state, county, and, hopefully federal, agencies to ensure it is acting entirely within the requisite legal guidelines in this, and all other projects the company undertakes.
Be sure to visit the company's website at www.americangreen.com and sign up for the company's EMAIL ALERTS to stay current on news. In addition, shareholders and other interest holders are invited to join the conversation about American Green found here: https://otc.watch/groups/american-green-inc-erbb/forum/
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NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company's Securities and Exchange Commission reports and filings. Certain statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements may identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, be should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.
About American Green, Corp.
American Green, Corp., became, in 2009, one of the first publicly traded technology companies in the cannabis industry. Now, with over 50,000 individual shareholders, more than any other company in the cannabis sector, American Green's mission is to lead the cannabis industry. Leveraging our team of professionals in cultivation, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives, while increasing shareholder value and company profit.
Contact: American Green, Inc. Investor Relations 11011 South 48th St. Phoenix, AZ 85044 480-443-1600 X555
Source:American Green, Inc.