COCONUT CREEK, Fla., Dec. 23, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Integrated Cannabis Solutions, Inc., (IGPK) is issuing a shareholder update to review 2019 accomplishments and outline the first Quarter of 2020.
2019 has seen significant progress for IGPK in its quest to enter the legal Hemp and Cannabis markets in the United States. We end 2019 with current Industrial Hemp Growing and Hemp Processing licenses in Wisconsin, we are ready to submit for Industrial Hemp Growing and Hemp Processing licenses in Florida, and we are on the verge of executing multiple deals in California to enter the Cannabis market, including acquiring a majority interest in a currently operating cannabis dispensary in Los Angeles that holds active licenses for both Cannabis Manufacturing and Distribution.
IGPK executed an agreement to purchase 9.5 acres of farmland in Lancaster, California. We have been working with an architect and engineers for about three months to submit a Conditional Use Permit (CUP) application for that property. We hope to complete the CUP application in the coming weeks.
In early 2019 IGPK retained legal and financial professionals to draft an S-1 registration and complete a two-year audit. The S-1 legal draft is now complete. We are awaiting stub period paperwork from the financial team so audited financials can be inserted into the S-1 and a complete document can be filed with the SEC. The S-1 will allow IGPK to register the existing Outstanding Shares of the Company only. To be very clear: no new shares will be registered via the S-1 registration that will be filed.
We are pleased to report IGPK has successfully paid off all debt from the previous contractors and eliminated almost all convertible debt.
As reported in the 2019 Quarterlies, the Company deferred closing the farm acquisition, did not grow or process hemp in Wisconsin, and did not close on any of the deals in California. This resulted in no revenue generation in 2019.
The choice not to close acquisitions early is managements. This strategy avoids causing delays or major overhauls to the S-1 once it is filed. The unintended outcome of these delays however was a sliding stock price which affected all shareholders.
The Company is listening and taking proactive steps to increase shareholder value. The actions listed below concerning payroll, stock options, and convertible debt will reduce reported outstanding debt on IGPK's books by approximately $500,000.
Effective December 31, 2019 all accrued payroll is eliminated except for $50,000 for 2017, 2018 and 2019.
2020 payroll is reduced to $180,000 for the year and will accrue until the Company achieves active operations.
Effective immediately all 150 million options tied to the employment contract are canceled.
Effective immediately all remaining convertible debt is eliminated in agreement with the debtholder.
Reducing debt and eliminating all convertible debt only takes the company so far. In the first two months of 2020 IGPK will begin closing transactions.
- In January IGPK will close the stock swap transaction with an operating dispensary in Los Angeles generating over $400,000 a month in sales, adding revenue to the Company in Q1 2020.
- Enter into a new contract to purchase the farm in Wisconsin, begin land prep for the new processing building, and order the building.
- Revise and file the S-1.
- Close the JV for Cannabis Manufacturing and Distribution in Los Angeles.
- In February the Company will begin ordering equipment for the processing plant.
- Will have the site ready for the building.
- Obtain financing commitments to purchase 50% of the dispensary in Los Angeles.
- Submit CUP plan for Lancaster, California.
- Submit application for the OTCQB.
- Complete over haul of the website and social media sites.
The changes taking place in January only affect the written portion of the S-1, not the financials that will be reported as these are all subsequent events.
The S-1 is key to IGPK's long-term success. With the S-1 in place IGPK can seek financial commitments to purchase the farm and purchase another 50% of the dispensary in Los Angeles.
The S-1 tells institutional level investors we value them and are committed to transparency. We have held discussions with investment firms who finance cannabis operations. These investment firms only invest in SEC reporting companies. Raising money in the OTC is hard enough. IGPK recognizes it needs to give prospective investors many reasons to invest, including moving from OTC Pink to a higher exchange.
IGPK's priorities for early 2020 are filing the S-1 with the SEC, closing the pending deals in California, getting uplisted to the OTCQB, getting the CUP application submitted in California, obtaining the CUP for the farm in Wisconsin, closing the farm in Wisconsin, becoming revenue producing Q1, and a startup of the processing lab no later than April.
As we close 2019 we look forward to the start of 2020 and all the exciting changes coming to IGPK over the coming weeks.
Integrated Cannabis Solutions, in compliance with SEC regulations, may in the future use social media outlets like Facebook or Twitter and its own website to announce key information in compliance with Reg FD.
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, estimates of services and equipment markets, release of corporate apps, growth of platform, target markets, product releases, product demand and, business strategy. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also consider that any investment in securities is at risk.
Details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure on otcmarkets.com.
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