LAS VEGAS, NV--(Marketwired - Apr 6, 2017) - Player's Network, Inc. (OTCQB: PNTV), a diversified holding company operating in media and marijuana, today announces a shareholder letter from CEO Mark Bradley, who discusses several corporate achievements and provides a corporate outlook for the remainder of 2017.
This has been a great start of 2017, and I am glad to provide you an update of several major milestones Player's Network has achieved in the media and marijuana spaces. Our momentum continues to build, and we expect to continue this pace thanks to numerous opportunities provided by initial financing of our projects in both of these large industries.
First Quarter Highlights
- Player's Network completed uplisting to OTCQB
- Green Leaf Farms awarded C of O from the City of North Las Vegas
- Completed first phase of construction on Green Leaf Farms
- Finalizing the last steps needed for state inspection
- Recreational marijuana now legal in Nevada
- Secured initial funding for key projects
- Positive action regarding Comcast lawsuit
- Launched WeedTV.com beta
- Obtained numerous WeedTV.com sponsorships
- Paid down most outstanding debt
On February 16, 2017, Player's Network uplisted to the OTCQB® Venture Market from the Pink Sheets. While Player's Network has always been fully reporting, the advancement to the OTCQB provides the opportunity to attract and build a greater shareholder base as we continue to expand our operations.
Green Leaf Farms Update
Player's Network has an 86% stake in our Green Leaf Farms Holdings ("GLFH") marijuana subsidiary, which holds a special use permit for production and cultivation license(s) granted by the city of North Las Vegas and the state of Nevada. GLFH has received its Certificate of Occupancy (C of O) for a portion of its 27,000-square-foot facility, marking a key achievement for phase 1 of the project.
We hired Grow Contractors (a division of MCIG) to develop and oversee the construction of GLFH's cultivation and production facility. Despite several regulatory hurdles, we are now very close to completing phases 1 and 2, as outlined below.
This first phase of construction totals roughly 6,000 square feet of common area, including offices, security, reception, storage, two cultivation rooms and a production lab, as well as vault, drying, trim, nutrient mixing and packaging rooms. This first phase will allow GLFH to commence operations and begin generating revenue through the sales of Rosin and cold water hash following final state approval, as outlined below.
Phase 2 of the build-out involves 7,000 square feet of 50% open grow flowering room and 50% several smaller vegetation rooms. One of the last steps in this phase is the approval of our fire safety plan. This month-long approval process includes joint efforts of an independent fire protection company and the City of North Las Vegas Fire Department. Once completed, the final step of phase 2 is to install mechanical HVAC and schedule the state inspection, also outlined below.
These projects take considerable work and diligence, and we appreciate our relationship with Grow Contractors as the team helps us find creative solutions to best streamline these processes.
State Inspection Update
First, it is important to note that the State of Nevada has been great to work with; it is obvious to us that decision makers really want to see this new industry succeed. Our current position in the state's inspection process is what is called a pre-inspection. This is where state inspectors walk with us through our facility to determine and discuss everything needed to pass the official inspection. Pre-inspection discussions are invaluable to the licensing process -- they are like receiving the answers to an exam before you take it. Notably, our inspectors had very few comments. One inspector said our facility is one of the nicest facilities they have walked through and that the pride we take in our work is evident. We were instructed to seal the walls and floors in the warehouses that will be a part of our future phases 3 and 4; we quickly started this work and expect it to be completed by April 15. We will then schedule the official inspection. If there are no more comments, we are told it will take about a week to receive our licenses to commence operations in phase 1, and another three weeks for phase 2.
Nevada going recreational
In November 2016, Nevada approved legalization of full recreational sales of marijuana. However, the only companies that will qualify for the allotted new 122 licenses are existing licenses holders -- which include GLFH. Beginning July 1, 2017, an initial 68 temporary licenses will be issued to existing dispensaries, enabling them to legally sell marijuana in the recreational market to customers aged 21 years and older. This will create a substantial market demand that GLFH will be able to monetize with our wholesale product. During the rest of 2018, the rules will be defined to allow applications for the remaining 54 retail licenses. GLFH plans to apply for three to five licenses. With 52 million visitors to Nevada each year, the state is estimated to become the largest recreational market for marijuana in the world! There is no guarantee we will receive any of the licenses but mathematically we have a very good chance of getting at least one.
As announced in the third quarter of 2016, Player's Network received a commitment of $7.6 million through a funding agreement with a private group of investors in the form of a promissory note. We have continued to receive the committed funds as we have hit certain terms that were outlined and disclosed in our 8k. In addition to the large capital commitment, I personally invested $350,000 in restricted long-term stock, as disclosed in a press release dated January 30, 2017, followed by an 8k disclosure. This investment was priced over the market at the time. I wish more CEOs would believe in and invest in their companies as much as I do in Player's Network. If I had more capital to invest, it would be into the potential of our company.
In January 2014, Player's Network filed a $150 million lawsuit against Comcast Communication for a breach of agreement. The discovery process was completed last year, and Comcast filed a motion for Summary Judgment to risk going to trial. Last month, we received the judge's decision to deny Comcast's request. This means the judge has ruled that our case has merit and a trial date will be set soon.
Our WeedTV.com platform is completed and has been internally tested. I think the platform is amazing and expect that it will have a substantial, positive impact on the entire medicinal marijuana industry (MMJ). It will also serve as a valuable marketing platform for all GLFH products. We are in the process of populating the platform with content and planning a beta launch very soon. We would like to invite our shareholders and anyone interested in having a first look at this amazing enterprise-scalable website to visit www.WeedTV.com. The platform's business model is to enable any business in the MMJ space to take its business digital via the creation of a personalized media network. Our revenues will be generated through licensing of the software that creates and controls each personalized media network.
WeedTV.com and GLFH Sponsorships
I have been in the media and production business for 30 years, and until now I have never experienced such an overwhelming response to a network in its pre-launch phase. To date, we have received an estimated $450,000 in product sponsorships from emerging companies who have signed with Green Leaf Farms and WeedTV.com.
This is our current sponsorship list: BioTrack, Sasquash Rosin Press, Advanced Gardens Hydroponics, Oregon's Only, Nector for the Gods Nutrients, eFinity lights, Air-Pot, Grow Contractors, Ushio, Digi-Path, Agromax equipment, Smart Grow Technologies, Rx Green Solutions.
Here is what a couple of our sponsors have to say about their experience with us thus far:
"We take pride in implementing the BioTrackTHC system in such beautiful facilities like those at Green Leaf Farms," said Taylor Jones, senior sales executive at BioTrackTHC. "We're proud to continue our long-term partnership by assisting them in their compliance, tracking, and business needs."
"The WeedTV platform is an amazing marketing tool and will be a game changer for MMJ companies to create and distribute their messages to target market and future customers," said Scott Ostrander, president of Oregon's Only.
Convertible Toxic Debt
At one point, Player's Network had accrued nearly $3 million in debt, much of it held by toxic debt holders. At the time, and like most small-cap companies, we had few options to reduce this debt. I am happy to say we have only $40,000 of this debt remaining in our books; however, this last amount is held by an outstanding group who has been with us long term. For the most part, I am proud to say we have no toxic debt and no supply of discounted securities that will enter into our market.
Shareholder Communications Initiative and Outlook 2017
We are finishing the development of an enhanced shareholder communications and investor relations campaign designed to heighten our brand visibility in the investment community and add another dimension of transparency as we continue to execute our growth strategies.
To conclude this letter, Brett H. Pojunis, director of Player's Network, explains where we are in this process and what you can expect from us for the remainder of the year:
"Due to the complexity and the overall size of this undertaking, we have experienced some delays in our launch. We had to reprioritize and adjust some of our goals as we responded to incredible opportunities presented to us. Additionally, challenges typical of an emerging market create snags. Just when we feel we are close to completion, another new rule and regulation outside of our control arises and sets us back a few weeks or further. However, as demonstrated, we have made substantial progress and I appreciate all the support from our shareholders. We are now in a great position and many of our initiatives are coming to fruition. I believe we will be one of the most talked about companies in our space this year."
We greatly value our shareholders, and thank each one of you for your continued support and belief in our brand.
CEO Player's Network
About Player's Network (PNTV)
Player's Network, Inc. is a diversified holding company operating in media and marijuana. PNTV owns approximately 86% of Green Leaf Farms Holdings, LLC (Green Leaf Farms), which has Nevada state issued cultivation and production license(s). The cultivation license enables Green Leaf Farms to grow marijuana and the production license enables them to create extracts which are used for cartridges, oils and edibles. WeedTV.com is a wholly owned subsidiary which is developing the ultimate resource for the marijuana lifestyle.
For more information please visit our corporate website at www.PlayersNetwork.com.
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 Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.