Concerns with the current state of the highly regulated cannabis industry in California, and complications integrating the cash business with its fully reporting public company were significant factors that resulted in PNTV’s late Q2 and Q3 filings.
LAS VEGAS, Jan. 31, 2019 (GLOBE NEWSWIRE) -- Player’s Network, Inc. (OTCQB: PNTV), a rapidly growing company in the adult use and medical marijuana industry, with operations in Nevada and Argentina, announced today that the company has opted to annul its acquisition of its Salinas Valley, California operation in order to redirect its resources to a much more lucrative and potentially profitable operation in Argentina, which will greatly enhance the company’s opportunities to enter international markets in a momentous way.
As a public company, the acquisition of the Salinas Valley, California operation caused PNTV significant compliance issues which resulted in late second and third quarter filings. The company quickly discovered that California’s new strict regulations and highly saturated marketplace made profitability a short-term challenge and a long-term headache. Weighing the investment of more money and resources into California against investing that money and those resources into the company’s incredible opportunity in Argentina announced last November (https://playersnetwork.com/pntv-announces-development-of-largest-cannabis-farm-in-the-world/) lead the Company to annul its acquisition in Salinas Valley and direct its assets into Argentina.
As part of the friendly, uncontested annulment, PNTV is receiving $600,000 in 2 payments, with additional payment upon closing of an acquisition by a new buyer up to $500,000. This is in addition to the money already realized by the company during its ownership period that will be reported in our 2018 10K audit.
The following issues with the California market which lead to PNTV’s decision to focus on Argentina are as follows:
- California’s illegal Black Market for growing cannabis is essentially unchecked by the state. As a result, it is flourishing, making it very challenging to compete against the lower costs of its unregulated products, which drives prices down to levels that the highly regulated legal market in California can’t compete with, especially without the vertical integration of dispensaries, which PNTV did not have in California.
- Acquiring the cash business in Salinas that operated without existing internal controls became problematic for our fully reporting company. The effort put forth by PNTV to get Salinas fully compliant is what led to our late filings.
- To consummate the Salinas acquisition, and upgrade the facility, PNTV would have had to invest an additional $4,700,000, which the company determined would result in a much higher ROI if invested in PNTV’s new Argentinean operation in association with the Jujuy government.
Mark Bradley CEO of PNTV stated, “We entered the California market to extend our operation beyond Nevada and provide value for our shareholders. But we quickly learned that the California market could not provide the shareholder value we had hoped for, so when the Argentina opportunity presented itself we quickly decided to make a course correction and shift our resources from California to Argentina. We believe it will turn out to be the best decision the company has ever made and will benefit the company and its current and future shareholders.”
Bradley adds, “For 29 years I have taken pride in rarely if ever filing late. Even though I knew these last two filings were late only because of complications caused by the Salinas Valley acquisition, as CEO it still bothered me that for 6 months I could not provide our shareholders with the full transparency they have become accustomed to.”
“Once our Q2 and Q3 are filed the company will be fully reporting again, with no stop sign to inhibit trading. Concurrently, I plan to release details on our amazing opportunity in Jujuy, Argentina, and our realistic plans for becoming a major player in the worldwide cannabis marketplace. I’m confident our shareholders will soon agree that this is the most exciting project the company has ever undertaken.”
We will soon be releasing a video of our new cannabis farm in Argentina consisting of 33,600 acres (52.5 sq. miles) of fertile soil with ideal organic growing conditions, shot during the deal signing ceremony between Green Leaf Farm South America and high-ranking government officials in Argentina. The video should quell anyone’s concerns about our decision to trade the California deal for this deal in Argentina, which will position the company to enter the worldwide cannabis marketplace with more dynamic financial opportunities than any other Cannabis company imaginable.
About Player’s Network (stock symbol PNTV)
Player’s Network is a rapidly growing company in the marijuana industry with licensed grow operations in Las Vegas, Nevada and Jujuy, Argentina. Over the last 12 months, the Company has gone from a development stage company to a fully operational cannabis business. The business strategy is to grow by acquisitions, joint ventures, and new market opportunities in the US and Internationally. Cannabis is legal for medical use in 30 States plus DC. It is legal for adult recreational use in 9 States plus DC. The entire country of Canada legalized marijuana adult use in October 2018. The Company believes this trend of legalization of marijuana in the US and worldwide will continue and create tremendous growth opportunities for shareholders.
For more information please visit www.PlayersNetwork.com
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Information about Forward-Looking Statements
This press release contains “forward-looking statements” that include information relating to future events. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: inability to gain or maintain licenses, reliance on unaudited statements, the Company’s need for additional funding, governmental regulation of the cannabis industry, the impact of competitive products and pricing, the demand for the Company’s products, and other risks that are detailed from time-to-time in the Company’s filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting Players Network, please refer to the Company’s recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Player’s Network Contacts:
David Klepinger, Investor Relations Manager
Interview Requests & Media Inquiries with Mark Bradley, CEO:
Christine Kramar, Executive Secretary to CEO
Phone: (702) 606-2618