CEO Emphasizes Continued Business Plan Execution As Key To Long-Term Shareholder Value In Letter To Shareholders Published Today
DALLAS, TX / ACCESSWIRE / August 6, 2015 / North American Cannabis Holdings, Inc. (USMJ) today released a letter to shareholders from the Company's CEO, Steven Rash, where he emphasizes continued business plan execution as key to long-term shareholder value. In his letter, Mr. Rash discusses his expectation for the Company to move up the MJIC Marijuana Index from its current top-ten position by highlighting the value of the Company's AmeriCanna Café destination beverage business and the demographics of the recent site selection for the first store; in addition to the highlighting the shareholder benefit of the Company's continuous spin-off and dividend strategy.
The letter is included in its entirety below.
Just one month ago we published a detailed presentation on the Company's overall business plan following a corporate name change and a strategic acquisition.
It's been a busy summer for North American Cannabis Holdings and so much has taken place in the short period since that presentation, we decided to provide an update in order to correlate how all the recent progress specifically demonstrates a deliberate and ongoing execution of the Company's business plan.
While we have been working to build a sustainable, long-term business within the new and exciting legal cannabis sector for nearly two years, our efforts have only recently been noticed by the public investment market.
The Company's total stock trading volume in 2014 amounted to less than $300,000 for the entire year. That's only about $1,000 a day in trading volume.
The year to date trading volume in 2015 has reached almost $7 million. The majority of that trading volume has come in just the last two months since the corporate name change on June 10th and the strategic acquisition on June 29th. The average daily trading volume for the first six months of this year was only $20,000 per day. The average daily trading volume for June and July has exceeded $100,000 per day.
Over the last year, the USMJ price per share (pps) has exhibited wild swings from over $1.00 to less than $0.01. Nevertheless, the volume weighted average pps (VWAP) has remained exceptionally stable. The VWAP over the past twelve months is $0.0129. The 2015 year to date VWAP is $0.0125 and the VWAP for the last two months since the corporate name change and strategic acquisition is $0.01037.
Wild pps swings are common in the OTC market. The opportunity to enjoy large profits from a dramatic pps change is in large part what attracts investors to the OTC market but at the same time what frustrates investors about the OTC market. When a pps increases, those investors speculating that the pps will increase are happy and those speculating that the pps will decrease are frustrated. And vice versa, when a pps decreases, those speculating that the pps will decrease are happy and those speculating that it will increase are frustrated.
Stock message boards typically reflect a battle between those speculating on a pps change in one direction or another. Posters speculating on an increase attempt to rally the morale of others looking for a pps increase. Posters speculating on a decrease do the opposite in an attempt to kill morale. Both are emotional appeals.
While we here at North American Cannabis Holdings are certainly excited about the business we are building, we are putting emotion aside and making sober, well thought out decisions about the deliberate steps to build a successful and sustainable operation. Remember, we have been at this for nearly two years even though the market is just now noticing. We are currently working off a business plan with a five-year outlook.
With nearly $5 million of the $6.8 million in year to date trading volume all coming within the last two months, the volume of calls and emails to the Company has increased substantially as investors looking for the OTC characteristic large profit opportunities from dramatic pps changes have gotten wind of USMJ's trading volume. We are doing our best to make timely responses.
In general, most of the emails and calls are looking for an explanation to the current pps or making suggestions as to how the Company can bolster the current pps. Our response is consistent. We intend to continue executing on our long-term business plan.
North American Cannabis Holdings is developing cannabis consumer products by executing various consumer product pilots from which we develop mainstream product rollout plans provided the subject pilot shows promise. In this manner, we have launched our mainstream destination beverage business, the AmeriCanna Café, and we are now launching our cannabis consumer healthcare products business.
Recognizing that OTC stocks are thinly traded with volatile pps trends, we are diversifying our mainstream product rollouts into independently traded public companies. By spreading the mainstream rollouts into multiple public holding companies, we avoid placing too much financing burden on any one stock.
The mainstream cannabis consumer healthcare products business will be the first developed under its own public holding company. The shareholders of USMJ will benefit by becoming shareholders in the new public holding company by receiving shares in the new public holding company through a distribution.
The spin-off of USMJ's healthcare pilots for mainstream development under a separate public holding company is only the first of many pilot spin-offs for mainstream development under separate public holding companies expected over the next five years. We anticipate one or two more before the end of the current fiscal year alone.
The summary response to the short-term pps question is for the Company to continue executing on its long-term plan.
The trading volume going from $20,000 a day to $100,000 a day over the past two months is an indication that the market has taken notice of USMJ. Two months however, is not an adequate period for the market to determine the value of USMJ's long-term plan.
Once the market learns more about the recent CityBlends acquisition; the demographic value of the first AmeriCanna Café site selection; the patent pending healthcare technology; the test results from early cannabis treatment trials and the resilience of USMJ's spin-off capitalization model, then the pps will be able to find traction.
By delivering the results to come from the continued execution of the USMJ business plan, room for speculation on the Company's value will be reduced. Message board emotional appeals will carry less weight in the face of actual results.
Last year, nobody knew who we were and we still continued to execute on our business plan. Now, people know who we are and some have bought into our plan while others are clearly betting against us in a hope to enjoy a large profit on a decreased pps. We are grateful for the market attention and just like last year when nobody knew or cared who we were, we will continue to execute on our business plan.
USMJ is one of more than 50 companies included in the Marijuana Index for OTC Current Information Companies:
USMJ is one of the top-ten most actively traded stocks included in the Index. USMJ is also in the bottom-ten with one of the lowest market capitalization values. No other company in the bottom-ten market capitalization values is also in the top-ten most actively traded.
Again, the increased trading volume indicates that USMJ has the market's attention. On the other hand, the market capitalization value is an indication that the market has yet to learn about the underlying value of USMJ.
I reiterate my contention that the best prescription for the Company's long-term pps is for the Company to continue executing on its business plan.
About North American Cannabis Holdings, Inc.
North American Cannabis Holdings, Inc. (USMJ) is founded on the core belief that cannabis makes people's lives better. Cannabis can fight disease, improve wellness and do so in an environmentally sustainable manner. North American Cannabis Holdings is dedicated to finding the best possible applications for cannabis to serve consumers. For more information please visit www.growusmj.com.
Follow the company on Twitter: http://twitter.com/US_HEMP
This press 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 Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
SOURCE: North American Cannabis Holdings, Inc.