LOS ANGELES, Oct. 07, 2016 (GLOBE NEWSWIRE) -- PINEAPPLE EXPRESS, INC. (OTC Grey:PNPL) (“Pineapple Express” or the “Company”), a provider of consulting, technology, cultivation suite rentals, and branding concepts to businesses in the legal cannabis industry, today issued the following shareholder update letter from Matthew Feinstein, CEO and Chairman.
To our valued shareholders:
First and foremost, I wish to thank you for your continued support. As CEO of Pineapple Express, I am pleased to provide an update on the recent developments and milestones that we have achieved, and to discuss our vision for the Company’s future.
Our Recent Developments and Milestones
We’ve made strong progress in the last few months. Below is a summary of our recent developments and achievements:
- Fully Reporting Status Progress: The Company’s audit of its wholly owned subsidiary THC Industries, LLC covering the past two years is expected to be complete in the 4th quarter by RBSM, LLP. This audit is one of the final steps necessary before Pineapple Express can file a regulatory form with the SEC in order to qualify to become a SEC fully reporting company. Once approved to be fully reporting, the Company intends to take all necessary action to have the caveat emptor designation removed and uplist to a national exchange.
- THC Industries, LLC: Pineapple Express has commenced execution of the brand marketing plan for its THC.com website and THC® Class 25 trademark. The Company engaged Paper Tiger to create its new and upcoming e-commerce website, THC.com. The website is scheduled to launch in January 2017. The Company also engaged StyleWorks Creative to design and implement its THC® brand licensing style guide. Pineapple Express also engaged a licensing firm, The Sharpe Company, to utilize the style guide as a tool for attracting apparel licensees and other lifestyle merchandise licensees for Pineapple Express’ THC® brand at licensing shows around the world.
- Nature’s Treatment of Illinois: The Company’s first medical cannabis dispensary consulting client, Nature’s Treatment of Illinois (“NTI”), in District 7 in Illinois, has experienced a very successful first 7 months in business. Patient count is now roughly 220 (through September 2016). The State of Illinois has just amended its cannabis pilot program to allow persons with PTSD and terminal illnesses to obtain state medical marijuana cards and NTI expects to start servicing these patients within the next 3 months. In addition, the State of Illinois substantially eased restrictions allowing doctors to more easily authorize the use of medical marijuana, which we anticipate will greatly enhance the Illinois cannabis pilot program that has been extended through 2021.
- Top Shelf Display Safe System: The Company has completed the design and engineering of its patent-pending “Top-Shelf Display Safe System.” This system will convert four critical components of the current cannabis dispensary model and combine them into a single technologically advanced and stylish unit. The system allows for a dispensary operator to:
- Safely and attractively display cannabis products
- Secure all products in an armored exterior safe with interior locked compartments that are climate controlled
- Weigh all products in real-time using electronic scales housed in the locked compartments within the unit that are automatically unlocked as transactions occur at the integrated point-of-sale software
- Transmit real-time inventory data to the integrated point-of-sale and inventory management system
- Authenticate transactions to consumers for legal compliance and record-keeping purposes
The Company anticipates completion of the prototype and to commence sales of the system to dispensaries in 2017.
- Pineapple Park: Pineapple Express confirms it has reserved 75% of its future commercial cultivation complex “Pineapple Park” in Desert Hot Springs, CA to cannabis cultivation businesses. The Company is in the process of purchasing up to 10.08 acres of property for this project, and is expanding its existing Conditional Use Permit to include the whole project. “Pineapple Park” is one of the first cannabis cultivation projects in Desert Hot Springs to have the power infrastructure available and required to begin its operations. Pineapple Express will provide “grey shell” buildings complete with power, substantial HVAC systems, and 24-hour exterior security. Tenants will be responsible for completion of their building interior design and layout, interior tenant improvements, and procurement of cultivation equipment. Pineapple Park’s first tenant, Clonenetics, Inc., is anticipated to begin cultivation in the first completed building in Pineapple Park within 5 weeks. Desert Hot Springs is the first municipality in Southern California to allow legal commercial cultivation of cannabis, which will be available to sell to legal dispensaries anywhere in California. Pineapple Express believes it can assist its first tenant in becoming the second municipally-issued permitted commercial cannabis cultivation business in Southern California. The Company’s Pineapple Park is featured in the cover story of the October 2016 issue of Palm Springs Life Magazine. The article is available here:
http://www.palmspringslife.com/thar-she-grows/
Our Future:
There's a remarkable amount of opportunity ahead of us in this new era of the cannabis industry for Pineapple Express in both this next year and upcoming years. 25 states and the District of Columbia have legalized medical or recreational cannabis. Polls show that marijuana is leading in every state where it is on the ballot in November (including Proposition 64 in California). The Company’s management team consists of seasoned professionals that come from brand marketing, the retail industry, real estate development, and the cannabis industry. We believe we are leading and/or will be leaders in the areas of canna-branding and canna-marketing, canna-retail, and canna-real estate development through our superb talents. Over the long term this should translate to sustained growth well into the future.
We see an unprecedented amount of opportunity heading into 2017 and the long term. Although we still have a lot of hard work ahead, our projects are generating excitement and promise. When I pause to reflect on how far we've come over the past year and how much further we'll go in the next one, I couldn't be more excited and optimistic. On behalf of the entire Pineapple Express management team, I would like to again thank you for your continued support. We strongly believe we have the staff, expertise, and strategic approach necessary to create the future we envision and we look forward to reporting on our progress as we continue to execute on our plans.
Sincerely,
Matthew Feinstein, CEO and Chairman, Pineapple Express, Inc.
About Pineapple Express
Headquartered in Los Angeles, CA, Pineapple Express invests in, expands, and brands existing and newly established canna-businesses through expert consulting and cutting-edge technology. Our common stock trades on the Grey Market. We provide capital to our canna-business clientele, lease real properties to canna-businesses, and provide consulting and technology to operators within the cannabis industry. We intend to create a nationally branded chain of company-owned cannabis retail stores under the "Pineapple Express" name, as soon as federal laws allow. As long as cannabis remains federally illegal, our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology and branding/retail concept support services. Home to some of the most experienced and well-connected minds in the business, Pineapple Express is at the forefront of the legal cannabis industry.
Forward-Looking Statements:
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 and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. More detailed information about the Company is available at www.otcmarkets.com/stock/PNPL/quote. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.