Los Angeles, CA, Jan. 30, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Dear Shareholders:
I wanted to thank you for your support and confidence in us over the past 12 months.
We have made great strides on developing our ideas and building the team that can execute them.
First – we began the process of developing a coin/token for the Cannabis Industry (Canncoin). Our vision is to assist the legal cannabis industry by developing proprietary technology and services that makes their businesses easier to operate. Cryptocurrency is a perfect tool that would facilitate the industry’s need for financial services as well as their reporting requirements to regulators and tax authorities.
To raise capital for this project we identified StartEngine.com. We went the crowdfunding route to avoid the traditional highly dilutive “convertible notes” that are a common financing mechanism for micro-cap companies. We want to maintain a capital structure that investors can understand.
We launched that raise at the StartEngine ICO Summit and have generated over $350k in crowdfunding commitments, one of the most successful campaigns on StartEngine.com – and increased our shareholder base by over 400. The raise to date has obligated us to issue 3.5 million shares of our common stock representing about 5% of our outstanding shares. These shares when issued will have a 12 month hold. Our share structure – is approximately 75 million shares (including the share cancellation that was resolved last July and reported in our quarterly report). Of these shares most are held by management with a float of approximately 12 million in the float.
We intend to create shareholder value, preserve share structure by staying away from any and all highly dilutive financing – with a future plan to develop a vibrant public market.
We finalized a development partnership with a leader in the token/crypto space – Applicature (applicature.com). Their team has assisted with over $200mm in capital raises and tech development, they are aligned with us as equity partners in lieu of a portion of their fees. We are near completion of our Whitepaper and look forward to demonstrating our initial applications.
In 2019 we expect to become fully audited and will contemplate moving to a higher tier of OTC Markets. As part of our project with Applicature we will begin a more cohesive communications effort – you will have a better view of our goals and achievements.
The Applicature and Cannco Efforts over the next 6 months will include:
· Completion of a whitepaper for the token offering and technology platform that will support the Cannco Ecosystem (this product is basically a business plan for our offering and will be one of the first of its kind)
· Token Economics
· Social Media – management, branding, and creative
· Capital raising
· Business Development
· Prototype Development
We are excited to be working with Applicature because of their deep experience in blockchain work and token design. Applicature is also available to scale up and down our team as needed as we grow.
Our business model is to develop revenue producing digital applications for the cannabis industry. These applications will support:
· Merchant Processing
· Branding and Advertising
· Dispensary Finder
We are targeting the completion of our first applications by the end of Q2 2019.
Best Regards,
Marcus Laun, CEO