LOS ANGELES, CA, Feb. 15, 2018 (GLOBE NEWSWIRE) -- Pineapple Express, Inc. (OTC Grey: PNPL) (the “Company” or “Pineapple Express”), a publicly traded company that offers consulting, technology, capital and real estate services, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, today released a letter to update shareholders on its recent accomplishments and its progress with respect to the Form 10 Registration Statement filed with the Securities and Exchange Commission (the “SEC”) on January 23, 2018.
Fellow Shareholders:
We are excited to announce that Pineapple Express has started 2018 in great form achieving the following important milestones:
Audited Financial Statements
We completed our 2016 audit guided by the excellent help from RBSM LLP, an independent registered public accounting firm. The audit is now available to the public. We will start on our 2017 audit soon, which is required for filing our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.
Form 10 Registration Statement
With the completion of the 2016 audit, we filed our Registration Statement on Form 10 (the “Form 10”) with the SEC on January 23, 2018. We anticipate that the Form 10 will become effective on or about March 26, 2018. Meanwhile, we expect comments from the SEC any day and will turn those around as quickly as possible clearing the path to becoming fully reporting.
Legal Counsel – Foley Shechter LLP
In conjunction with the preparation and filing of the Form 10, as well as future SEC reporting obligations, we appointed Foley Shechter LLP as our general corporate and SEC counsel. Foley Shechter is assisting us with corporate governance and securities laws work, and in staying current with our filings and other requirements, so that we can commence trading on the OTC Markets as quickly as possible.
OTC Markets
We intend to establish a relationship with a market maker very soon in order to file a Form 211 application with FINRA. The Form 211 process should begin shortly and should take 4-8 weeks to complete, if all goes according to plan. If and when FINRA approves our Form 211 application, Pineapple Express’s common stock will be able to be traded on the OTC Markets, which will increase our visibility among other publicly traded companies in the cannabis sector. For the moment, our trading will remain limited until our Form 211 application is approved by FINRA.
Stock Dividend
For the benefit of our shareholders, our board has initially approved the issuance of four separate 20% stock dividends of the Company’s common stock to shareholders of record as of June 30, 2018, December 31, 2018, June 30, 2019, and December 31, 2019. To clarify, shareholders of record on those dates will receive one share of newly issued common stock for every five shares held as of such record dates. Accordingly, the Company expects (subject to regulatory approval and consent) that shareholders holding their shares during all four record dates will get a 100% increase in the number of shares they own. The initial dividend, and those that follow, will become effective upon FINRA’s approval and consent.
Business Developments
- On June 20, 2017, we announced licensing our THC.com web domain to The Hit Channel, Inc., a media production and marketing company offering cannabis related products. The THC.com website is now live in an initial pilot phase.
- We are currently in the process of negotiating the opening of several Pineapple Express branded dispensary locations in Los Angeles County that will feature a catalog of products branded under the Pineapple Express and THC trademarks and featured on THC.com.
- Additional information on our landlord development project in Adelanto, California; our patented Top-Shelf SDS (Safe Display System) for dispensary inventory management; and our other initiatives will be provided during the next few weeks as further developments happen.
- Lastly, we expect to strengthen our management team by adding additional board members in the near future.
We thank all of you valued shareholders for your continued support of Pineapple Express. We believe that you will be rewarded with increased share value in the short and long-term as our business progresses. Pineapple Express is well-positioned to take advantage of the recent surge in the cannabis market bolstered by increasing public acceptance and favorable legislation.
Matthew Feinstein, CEO & Chairman
About Pineapple Express, Inc.
Pineapple Express, Inc. (the “Company”) is based in Los Angeles, CA. Through the Company’s operating subsidiary Pineapple Express Consulting, Inc., the Company provides capital to its canna-business clientele and consulting services and technology to develop, enhance, and expand existing and newly formed canna-businesses. Through the Company’s operating subsidiary Pineapple Park, LLC, the Company develops, leases and manages real estate properties for the use of its canna-business clients. Through the Company’s operating subsidiary THC Industries, LLC, the Company is licensing a branded clothing line and owns the rights to sell apparel such as t-shirts, hats, beanies, pants, shorts, baseball jerseys, jackets, sweatshirts, polo shirts, sweat pants and other attire displaying the THC trademarked name and logo, and owns the rights to the THC.com URL address. The Company also intends to create a nationally branded and vertically integrated chain of cannabis retail stores under the “Pineapple Express” name as soon as the U.S. federal laws allow, which will be supported by anticipated Company-owned cultivation and processing facilities, and will feature products from anticipated Company-owned manufacturers. As long as cannabis remains federally illegal in the U.S., the Company’s operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology, and providing ancillary support services. The Company believes that its competitive advantages include its wealth of experience, business model, exclusive proprietary technology, and key industry contacts in an industry that is foreign to most. It is the Company’s expectation that these factors will set the Company apart from most of its competitors.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which 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. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. These factors include uncertainties as to the application and enforcement of U.S. and state federal laws in the cannabis industry (including to the Company’s business activities and the business activities of some of its customers and counterparties), ability to attract new canna-business clientele, successfully implementing the Company’s growth strategy (including relating to the Company’s intention to create a nationally branded and vertically integrated chain of cannabis retail stores under the “Pineapple Express” name and anticipated development of Company-owned cultivation and processing facilities), dependence on key Company personnel, timing of the filing the Company’s Form 211 with FINRA and clearing related comments, obtaining approval for the Company’s common stock to be quoted on one of the three OTC Markets, changes in economic conditions, competition and other risks including, but not limited to, those described from in the Company’s Registration Statement on Form 10, filed with the Securities and Exchange Commission on January 23, 2018 (the “SEC”), and other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof and the Company disclaims any obligations to update these statements except as may be required by law.