PHOENIX, AZ and NIPTON, CA, April 05, 2018 (GLOBE NEWSWIRE) -- American Green, Inc. (ERBB:OTC) is pleased to announce that American Green has received certificates representing 160,000 shares of Delta International Oil and Gas (OTCQB:DLTZ) Series A Secured Convertible Preferred Stock.
Furthermore, American Green will deliver certificates representing 1,000,000 shares of Nipton, Inc. (100% of the equity of Nipton, Inc.) to Delta today, and as a result Delta holds title to all of the properties in Nipton acquired by American Green in 2017.
American Green now holds more than 82% of the equity/voting power of Delta. Delta will be operated as a subsidiary of American Green and we will be consolidating Delta’s earnings on our financial statements.
As a fully reporting public company, Delta can access a different investor tier to raise capital utilizing registered offerings, as well as the private placement structures that American Green has utilized in the past. This hybrid of capital-raising is expected to result in less costly capital and less overall dilution for American Green shareholders.
By raising capital through the sale of equity, Delta’s assets will grow and eventually be able to qualify for exchange listing, opening additional opportunities for capital, and, as a consolidated subsidiary, American Green’s book value will grow concurrently with Delta’s, increasing shareholder value.
Delta intends to register up to $5,000,000 of non-voting preferred stock on Form S-1 in order to fund future development in Nipton, and other projects, including, first and foremost, the consolidation of any properties, mostly already under contract, of any real value in the Ivanpah Valley in which Nipton is located. Expanding from there, Delta plans to capitalize on any opportunities for projects that present themselves. Some of these may include the National Preserve, the Bureau of Land Management and, potentially, San Bernardino County, in order to ensure that our consolidated interests in Nipton are protected, and enhanced, while establishing and maintaining strong relationships with the relevant authorities, as well as any other interested parties that desire to see the area improved and the area’s natural beauty preserved.
Beyond the real estate already in the queue, most anticipated infrastructure projects will fall under Delta’s purview, with a strong focus on those projects that can provide the largest increase in shareholder value. While both American Green and Delta strongly believe that cannabis and industrial hemp represent a better future, both for Nipton and the Nation, being located within a short distance of two very large metropolitan areas, Nipton can support myriad other legal uses beyond cannabis and hemp. Those uses can include solar energy, transportation infrastructure, manufacturing and data storage. Nothing is off the table, and many projects remain on the drawing board, all of which will, of course, comply with all State and County requirements.
Until a prospectus can be completed, registered and approved for sale by the SEC, Delta plans to offer accredited investors the opportunity to purchase up to $1,500,000 convertible debt, having already secured commitments for no less than $500,000.
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NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company's Securities and Exchange Commission reports and filings. Certain statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements mayidentified by words such as estimates, anticipates, projects, plans, expects, intends, believes, be should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.
About American Green, Inc.
American Green, Inc., became, in 2009, one of the first publicly traded technology companies in the cannabis industry. Now, with over 50,000 individual shareholders, more than any other company in the cannabis sector, American Green's mission is to lead the cannabis industry. Leveraging our team of professionals in cultivation, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives, while increasing shareholder value and company profit.
About Delta International
On April 2, 2018, in exchange for shares of our common stock, Delta International Oil and Gas purchased from American Green its subsidiary Nipton, Inc., a California corporation, the assets of which are comprised of all of the real estate properties included in the unincorporated township of Nipton, California (“Nipton”). Nipton is located near the Nevada border a short distance from Rte. 15, the principal highway between Los Angeles and Las Vegas.
American Green, Inc., now our controlling stockholder, is the second oldest publicly-traded cannabis company in America and has participated in nearly all facets of the cannabis market. Delta’s management’s intentions are for Delta’s Nipton, Inc. subsidiary to act solely as a property developer and lessor for companies in the medical or recreational cannabis sectors in the State of California, including such initiatives as the transformation of nearly-abandoned towns (such as Nipton) into "cannabis-friendly" destinations. It has been American Green’s vision (and now, Delta’s vision) to use Nipton, California as a revitalization model for other near-deserted small towns across America while retaining as much of the town’s and region’s natural charm, a directive that is paramount to American Green. American Green will remain under contract with Delta to manage the Nipton Asset and Project for 10 years.