Yardley, Nov. 20, 2014 (GLOBE NEWSWIRE) -- OSL Holdings (OTCQB: OSLH) ("OSL" or "the Company"), a socially conscious business dedicated to consumer advocacy, social activism and the advancement of civil liberties through the power of commerce, released today a letter to shareholders from OSL Holdings' Chief Business Development Officer, Steve Gormley. The letter was written to serve as an update on OSL's business development strategy and activities.
Fellow Shareholders,
It's been nearly three months since my last letter to OSL's shareholders and I am happy to report that the pipeline for opportunities of the Company is strong, that the company continues to effectuate its mission and accretive acquisition growth strategy.
Last week I attended the third annual Marijuana Business Conference & Expo in Las Vegas. https://mmjbusinessdaily.com/conference/.
The conference sold out; the convention hall was packed with institutional money (hedge funds, private equity, venture capital, investment banks) and private investors, high net worth angel investors, big bio-pharma companies, multi-national retail conglomerates, representatives from the alcohol, tobacco and gambling industries, press and media and a healthy sampling of celebrities.
OSL was profiled in the Daily Mail. The interview was conducted during the conference. The scene at the convention was entirely corporate. There are now 23 states that permit the use of legal medical marijuana and four states, plus the District of Columbia, that allow recreational usage. More than two thirds of Americans live in a state with access to legal marijuana. The timing couldn't be better for investment into medical marijuana and OSL is at the forefront of the movement.
OSL has advanced its mission through recent acquisitions and strategic partnerships. On October 20, 2014 OSL acquired Go Green Hydroponics, a hydroponics, indoor gardening and cultivation supply retail operation, located in Los Angeles, California, specializing in the sale of hydroponic cultivation equipment, mineral nutrient solutions and gardening resources and equipment. Go Green Hydroponics is expected to reach revenues of $3 million a year in fiscal 2014 with expected annual increases at a rate of 10-15% with expected gross profit margins of 25-30%.
http://online.wsj.com/article/PR-CO-20141022-909737.html
OSL is also broadening its footprint in the industry by pursuing the technology and social media game aspects of the business. On October 28, 2014 OSL announced the development of a multi-tier, on-line cross platform social network and information repository solution that will enable legal marijuana dispensaries and hydroponic gardening supply retailers to manage marketing, lead generation, and retail discovery. The platform is expected to become an ad supported on-line extension of our recently acquired Go Green Hydroponics retail operations and other vertical venders and will enable local and hyper local search with advanced querying capabilities when it is expected to launch in the second quarter of fiscal 2015. Designs for the platform include a comprehensive B2B and B2C portal and a social network with planned user generated content features. We plan to launch both a web-based and mobile platform that will enable dispensaries and patrons to manage and search while on the go. Planned community and social features will allow patrons to share experiences and provide feedback to the dispensaries and community.
OSL is also pursuing the commercial real estate aspects of the business. On November 6, 2014 OSL announced its plans to enter into a joint venture with Alpha Equity Group, a New York limited liability company that plans to acquire commercial real property for lease to various aspects of growing, processing, manufacturing, sale and distribution of cannabis products in a manner that is legal under state and local ordinances in all of its legal forms including but not limited to medicinal cannabis. The joint venture, Gold is Green, a New York LLC, will have OSL as 49% equity owner in the assets of the JV for its identification of zone complaint locations, lease holders, negotiation of purchase and management of lease holder relationships. The LLC signed its first Purchase Sales Agreement on October 31, 2014 to acquire a multi-tenant commercial retail building consisting of approximately 17,692 square feet in Torrance, California for $6.3 million. The building is zone compliant for the operation of a legal, medical marijuana collective. The closing on this property is expected prior to 2015 and is subject to completion of financing, a property inspection and additional conditions, representations and warranties that are customary of real estate purchase and sale agreements.
OSL is also expanding its awareness efforts by enlisting Hollywood elites. On November 13, 2014 the Company announced creation of a Social Advisory Board. The Advisory Board will help shape OSL's corporate identity; will work closely with management to create new socially conscious business verticals and will support corporate and business development initiatives by raising the awareness of our Company as we seek to attract additional investment capital within and outside Hollywood. The Advisory Board will be comprised of nine members and with plans to include investors and shareholders from the media and entertainment industries. OSL intends on including investors and shareholders from the fashion, retail and financial services industries as well as business leaders in the socially conscious business sectors.
The Advisory Board has launched with three inaugural members: Molly Newman, David Zucker and David Marshall Grant. Newman, Zucker and Grant have all invested in OSL Holdings and are presently shareholders of the Company.
Molly Newman is an Emmy Award-winning television writer and producer. Most recently, she was a writer and Consulting Producer on "Political Animals," which was nominated for Emmy, Golden Globe, and Writers Guild Awards. She spent five years as Executive Producer of the ABC series "Brothers and Sisters." Her varied television career includes credits in multiple genres: single camera comedy ("The Larry Sanders Show"), multi-camera comedy ("Frasier" "Murphy Brown"), sketch comedy ("Tracey Takes On…") and drama ("Brothers and Sisters"). As a playwright, she was nominated for a Tony award for the Broadway production of her play Quilters. Her plays have been produced on the mainstages of many regional theaters including The Kennedy Center, The Mark Taper Forum, Actor's Theatre of Louisville, Houston's Alley Theatre, The Denver Center Theatre Company, and the Pittsburgh Public Theatre.
David Zucker is an award winning writer, producer and director whose films have grossed more than $1 billion. Among his credits are Airplane, The Naked Gun and Scary Movie franchises, Kentucky Fried Movie, Phone Booth, Ruthless People, Top Secret, and A Walk in the Clouds.
David Marshall Grant is a Tony nominated actor with many Broadway, Television and Film Credits, including Angels in America, American Fliers, Bat 21, The Devil Wears Prada, thirtysomething, Chicago Hope, Law & Order, and Alias. As a television writer and producer David has worked on numerous shows, including Brothers & Sisters, Smash and Nashville.
The state of the marijuana industry shifted in favor of legalization during the midterm elections this year.
OREGON: Voters passed Measure 91, which legalizes the possession, use and sale of recreational marijuana for adults 21 and over. The measure makes Oregon the third state in the nation to end the prohibition of marijuana, joining Colorado and Washington state, which both legalized retail cannabis in 2012.
Under Measure 91, adults can have up to 8 ounces of marijuana at home and up to 1 ounce in public. The Oregon Liquor Control Commission will be charged with regulating and monitoring the industry. Taxes collected on sales of marijuana will go to fund schools, law enforcement, and drug prevention and education programs in the state.
"Our vote in Oregon, by the people, is a huge step forward for the rationalization of our failed drug policies," Rep. Earl Blumenauer (D-Ore.) told The Huffington Post. "We're going to celebrate the victory tonight and get to work on fixing federal policy in the morning."
When Oregon's new law is fully implemented, the state financial estimate committee projects that additional tax revenues could range from $17 million to $40 million annually. A recent study from the personal finance site NerdWallet forecasts between $50 million and $100 million in annual tax revenue.
WASHINGTON, D.C.: Voters on Tuesday approved Initiative 71, which legalizes adult marijuana use, possession of up to 2 ounces and home cultivation of up to six marijuana plants for personal use.
Under the measure, the sale of marijuana remains illegal, but the Council of the District of Columbia is considering a separate bill that would allow for the regulation and taxation of marijuana sales, similar to laws on the books in Colorado and Washington state.
Even though sales are not allowed, the passage of the law on the federal government's home turf represents one of the largest symbolic shifts in U.S. marijuana policy since Colorado and Washington state legalized recreational use of marijuana two years ago.
Now that voters have approved the measure, the bill moves to the U.S. Congress for a mandatory 60-day review period. If there is no interference, the measure could go into effect in early 2015. However, Rep. Andy Harris (R-Md.) has vowed to put a stop to the progression of the bill when it comes up for a vote.
MAINE: Voters in South Portland, the fourth-largest city in the state, approved a measure that removes all legal penalties for possession of up to 1 ounce of marijuana by adults. Maine's largest city, Portland, already legalized recreational marijuana last year.
A similar measure in Lewiston failed on November 4, 2014.
NEW MEXICO: Voters in New Mexico's Bernalillo and Santa Fe counties overwhelmingly approved the decriminalization of marijuana in nonbinding ballot questions meant to gauge support for such a measure.
The county questions follow the Santa Fe City Council's decision in August to decriminalize possession of marijuana and marijuana-related paraphernalia. The city's penalty was reduced to a $25 civil infraction.
CALIFORNIA: Voters passed Proposition 47, reducing the classification of most "nonserious and nonviolent property and drug crimes" from a felony to a misdemeanor. In practice, it means that nonviolent felonies like shoplifting and drug possession will be downgraded to misdemeanors under the ballot measure, and as many as 10,000 people could be eligible for early release from state prisons.
The measure strikes a major blow against mass incarceration, downgrading an estimated 40,000 felonies a year in California.
NEW JERSEY: Voters approved of Public Question No. 1, a bail reform measure that will reduce the pretrial incarceration of those accused of low-level drug violations. Poorer defendants who can't afford bail, but who are not considered a threat to the community, will now be eligible to be freed through an alternative release system while awaiting trial.
Judges can still deny pretrial release to individuals who pose a clear danger, to repeat offenders and to those who are a probable flight risk.
A recent report from Luminosity and the Drug Policy Alliance found that almost 75 percent of the nearly 15,000 individuals in New Jersey's jails are awaiting trial rather than serving out a sentence, and almost half of them remain incarcerated simply because they cannot afford bail. The Drug Policy Alliance backs Public Question No. 1.
ALASKA: Voters approved Measure 2, legalizing the possession, use and sale of recreational marijuana. Adults 21 and older may possess up to 1 ounce of marijuana and grow up to six plants (with no more than three being mature) for personal use. The measure also legalizes the manufacture, sale and possession of marijuana paraphernalia, such as devices used for smoking or storing the plant.
Legal retail sales of cannabis could raise $72.5 million in tax revenue for the state in just the first five years -- $7 million in the first year, and $23 million by 2020 -- according to a recent report from the Marijuana Policy Group.
Alaska became the fourth state in the U.S. to legalize recreational marijuana on November 4, 2014. It was the third attempt to legalize recreational cannabis in the state, with voters rejecting measures in 2000 and 2004. Alaska is one of 23 states that have already legalized medical marijuana.
FLORIDA: While Amendment 2, which would have legalized medical marijuana in the state, failed to pass, it did garner a majority of voter support -- 57 percent -- at the ballot. However, due to state law, the measure required 60 percent support to pass.
"A tremendous majority of Floridians voted to legalize marijuana for medical purposes today -- and that's what really matters, notwithstanding the fact that the initiative will not be implemented," said Drug Policy Alliance Executive Director Ethan Nadelmann in a November 4, 2014 statement. "Today's vote is a confirmation of medical marijuana's broad support across the political spectrum and sends a powerful message not just to Florida legislators but also throughout the South and even nationally."
Amendment 2 would have legalized marijuana for medical purposes in Florida. The measure proposed allowing doctors to prescribe cannabis for "debilitating medical conditions," which the bill defined as cancer, multiple sclerosis, glaucoma, hepatitis C, HIV, AIDS, ALS, Crohn's disease, Parkinson's disease or "other conditions for which a physician believes that the medical use of marijuana would likely outweigh the potential health risks for a patient."
The measure faced a well-financed opposition campaign, primarily funded by billionaire casino mogul and GOP mega-donor Sheldon Adelson. Adelson put $5 million toward the opposition to Amendment 2, accounting for roughly 85% of the total funding of the campaign to defeat the measure, according to The Washington Post.
The future continues to look bright for OSL Holdings Inc. and its shareholders. We wish all our shareholders and market watchers a Happy Thanksgiving and a Happy Holiday Season.
Best regards,
Steve Gormley
Chief Business Development Officer
OSL Holdings Inc.
About OSL
OSL Holdings Inc. (OTC: OSLH) is a socially conscious business model dedicated to consumer advocacy, social activism and the advancement of civil liberties through the power of commerce. We seek to serve affluent, liberal and libertarian consumer groups, a constituency that we believe responds to cause marketing and activism through two distinct business units: Equality Rewards, a technology platform delivering consumer rewards programs; and, OSL Medical Services, a management and services division dedicated to delivering services to legal medical marijuana businesses. We are a development and technology company specializing in affluent, liberal markets with high disposal income. The Company intends to operate a real-time loyalty rewards platform that can facilitate the earning and redemption of rewards currency at the point of the transaction (online, mobile, at retail) as well as on future transactions. OSL Holdings' target consumers are highly educated, respond to cause marketing initiatives and socially conscious business models, and are technologically savvy. The Company also plans to provide foundational work for branding, marketing, technology, and logistics to existing or emerging legal marijuana licensees when federal law permits.
The Company's filings with the SEC are available at www.sec.gov.
For more information, please visit the Company's website at www.oslholdings.com.
Forward-Looking Statements -- Safe Harbor
This press release contains forward-looking statements. In some cases you can identify those so-called "forward-looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These statements include, but are not limited to, our expectations concerning our expectations concerning Go Green's revenue growth, the market and growth rate for medical marijuana cultivators, and our ability to provide support services to marijuana growers, our expectations concerning our ability to launch our planned on-line marketing platform and our expectations for vendor acceptance and potential revenues from the planned operation of this website, our expectations concerning the completion of the Gold is Green joint venture agreement, our ability to obtain financing and complete the planned real estate acquisition and the identification, ability to obtain financing and complete the acquisition of future real estate projects, our ability to raise capital and our expectations concerning the contributions of our social advisory board and our expectations concerning future legislation.
By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors, risks and uncertainties that could cause actual results and developments to differ materially from forecasted results. For a discussion of these factors, risks and uncertainties please see our filings with the Securities and Exchange Commission. Our public filings with the Commission are available from commercial document retrieval services and at the website maintained by the Securities and Exchange Commission at http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.