1. finance
2. investing
3. venture capital

VIRIDIAN
3rd Quarter
2014
CAPITAL & RESEARCH
Scott L. Greiper
[email protected]
Michael J. Swartz
[email protected]
VIRIDIAN CANNABIS INDUSTRY REPORT
Capital, M&A, Research and Investor Relations for Cannabis Companies
Viridian Capital & Research is pleased to present the Viridian Cannabis Industry Report and Stock
Index, a unique resource that tracks, evaluates and reports on the emerging public markets for
Cannabis companies. The legal marijuana industry is among the fastest growing in the U.S., estimated
at $1.5 billion for 2013, growing to over $2.5 billion this year, and more than $10 billion by 2018. A
total of 23 states have legalized medical marijuana, 2 have legalized recreational marijuana, and more
states will vote for legalization in the upcoming November elections. The capital markets have taken
notice – there are now more than 75 public Cannabis companies in the U.S., up from 13 at the end of
2012. The performance has been outstanding -- the Viridian Cannabis Stock Index returned 147.1%
through the first nine months of 2014, after registering a 146.6% gain in 2013. However, this growth
has created real challenges for public companies and investors:
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The Financial Industry Regulatory Authority (FINRA) website openly discourages investment
in marijuana stocks and issued warning letters about investing in the sector.
Several publicly traded companies have had trading suspended.
Wild gyrations in stock prices have created an environment that attracts traders, retail
momentum investors and shorts, but discourages institutional investors.
A number of companies lack proven/professional management teams and Boards of
Directors.
Poor financial controls have led to concerns over transparency and reporting standards.
The unusual complexity but significant upside of this market is why we formed Viridian Capital &
Research in order to bring institutional advisory services to the Cannabis industry -- investment
banking, sophisticated market research, strategic direction and investor relations. Viridian was formed
by a group of experienced Wall Street bankers and analysts with a long-term track record of helping
emerging growth companies scale their businesses, build their management and board depth, source
growth capital and execute M&A strategies. We believe that this expertise is well suited for Cannabis
companies as we see a persistent need for growth capital, increased movement of institutional capital
into the market and surging M&A activity as the market rationalizes.
“We see a shake-out coming in the Cannabis industry – a separation of the legitimate from the shady;
increasing clarity on the legal and regulatory situation, especially at the federal level; increasing
product/service focus among providers rather than trying to be a one-stop shop; rationalization of
valuations; and a growing awareness of the market’s long-term potential. This will attract more
traditional capital sources and market participants.” Scott Greiper, President/Founder, Viridian
Capital & Research, Institutional Investor, August 24, 2014.
For additional information or to receive an additional copy of this report contact Michael Swartz at
[email protected] or call 212-333-0257.
Broker-Dealer Services Provided Through Pickwick Capital Partners, LLC A Member of FINRA and SIPC.
This report is published solely for information purposes and is not to be construed as investment advice or as an offer to sell or
the solicitation of an offer to buy any security in any state. See Important Disclosures on back page.
590 Madison Avenue
New York, N.Y. 10022
www.viridiancr.com
VIRIDIAN CANNABIS INDUSTRY REPORT
VIRIDIAN CANNABIS STOCK INDEX
Viridian Cannabis Stock Index Up 147.1% Through 3Q’2014
The Viridian Cannabis Industry Index gained 147.1% for the first three quarters of 2014, significantly outperforming
the Dow Jones Industrial Average (up 2.8%), S&P 500 (up 6.7%), Nasdaq (up 7.6%) and the Russell 2000 (down
5.3%). This performance follows a strong 2013, when the Index gained 146.6%, outperforming all of the
comparative indices. Of the ten cannabis sectors within our index, six showed positive gains, with the top three
performers being Consulting Services (up 665.3%), Biotechnology (up 339.3%) and Infused Products & Extracts (up
135.3%).
The Viridian Cannabis Stock Index is presently comprised of 70 publicly traded Cannabis companies, categorized
across 10 sectors. The index is valued on an Equal Weighted Total Return basis. The number of publicly traded
Cannabis companies has soared in the last 3 years.
Despite this strong performance through the first nine months of the year, all of the gains were made in the first
quarter of the year, which saw the index rise by 838.4%. The 2Q’2014 and 3Q’2014 both experienced double digit
declines of 15.7% and 38.5%, respectively. We believe that this reflects the hype and promotion in the public
Cannabis sector in 2013 through the first quarter of 2014, and the much needed “return to fundamentals” in the
sector.
The top three stock performers in our index through Q3’2014 were: Novus Acquisition and Development
(OTCPink:NDEV), up 3100.0%, a provider of health insurance and medical plans for patients who wish for
alternative treatment in MMJ/Hemp; Abattis Bioceuticals Corporations (OTCQX:ATTBF), up 1600.0%, a specialty
biotechnology company that produces, licenses, and markets proprietary ingredients, bio-similar compounds,
patented equipment, and consulting services to medicinal and adult marijuana markets in North America; and
United Cannabis Corporation (OTCQB:CNAB), up 1025.0%, a bio cannabinoid technologies company that
provides consulting services in the medical marijuana industry.
From a capital markets perspective, 23 companies completed a total of 34 capital raises, valued at approximately
$51.6 million. The top three sectors that raised the most capital were Cultivation & Retail (raising $10.5 million),
Biotechnology (raising $10.1 million) and Consulting Services (raising $9.5 million). The largest capital raise was
reported by Terra Tech (OTCQB:TRTC), which closed a $6.5 million debt facility. Many of the capital raises in
this sector have been less than $1 million in size, which reflects the early stage nature of this industry and the lack of
institutional investors on this market.
From an M&A perspective, 21 companies completed a total of 33 acquisitions, with Ancillary Cultivation & Retail
and Cultivation & Retail Sectors being the most active, engaging in 7 acquisitions each. We expect acquisition
activity to grow for several reasons: public companies buying “meat on the bone” in terms of financial results to
support current valuations; private companies wanting to “go public” by being acquired by already public companies;
and public companies seeking to build out their IP and product portfolio.
From a valuation perspective, the Index closed Q3’2014 with a median Enterprise Value/TTM Revenue multiple of
61.9x. The highest valued sector is Biotechnology (1591.2x), followed by Software (1187.1x), and Consulting
Services (175.1x). While valuations have declined over the past 6 months, in our opinion they reflect promise more
than facts and will have to be supported by fundamentals over the intermediate and long term.
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VIRIDIAN CANNABIS INDUSTRY REPORT
SECTOR PERFORMANCE
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VIRIDIAN CANNABIS INDUSTRY REPORT
COMPANIES BY SECTOR
Ancillary Cultivation & Retail
Consumption Devices
Investment/M&A
Aerogrow International (OTCQB:AERO)
mCig, Inc. (OTCQB:MCIG)
FastFunds Financial Corp (OTCPink:FFFC)
American Green, Inc. (OTCPink:ERBB)
ML Capital Group, Inc. (OTCQB:MLCG)
Full Circle Capital (NasdaqGM:FULL)
AVT, Inc. (OTCPink:AVTC)
RapidFire Marketing (OTCPink:RFMK)
FutureWorld Corp (OTCPink:FWDG)
GreenGro Technologies (OTCPink:GRNH)
Vape Holdings, Inc. (OTCQB:VAPE)
Hemp, Inc. (OTCPink:HEMP)
Growlife Inc. (OTCQB:PHOT)
Vapor Group, Inc. (OTCQB:VPOR)
Medical Marijuana, Inc. (OTCPink:MJNA)
IMD Companies (OTCPink:ICBU)
Vaporin, Inc. (OTCQB:VAPOD)
Mentor Capital (OTCPink:MNTR)
Neutra Corp (OTCQB:NTRR)
VaporBrand International (OTCPink:VAPR)
Surna Inc. (OTCQB:SRNA)
Quasar Aerospace Industries (OTCPink:QASP)
TumbleWeed Holdings OTCQB:DCDC)
The MaryJane Group, Inc. (OTCQB:MJMJ)
Cultivation & Retail
Two Rivers Water & Farming Company
Affinor Growers, Inc. (OTCQB:RSSFF)
(OTCQB:TURV)
Physical Security
Alternative Fuels Americas (OTCQB:AFAI)
Verde Science, Inc. (OTCQB:VRCI)
Blue Line Protection (OTCQB:BLPG)
Cannabis Kinetics (OTCQB:CANK)
Nhale, Inc. (OTCQB:NHLE)
DirectView Holdings, Inc. (OTCPink:DIRV)
Enertopia Corp. (OTCQB:ENRT)
Force Fuels Inc. (OTCPink:FOFU)
Biotechnology
Med-Cannabis Pharma, Inc. (OTCQB:MCPI)
Abattis Bioceuticals Corp. (OTCQX:ATTBF)
Next Gen Management Corp. (OTCQB:NGMC)
Cannabics Pharmaceuticals, Inc. (OTCQB:CNBX)
Primco Management (OTCPink:PMCM)
Cannabis Science, Inc. (OTCQB:CBIS)
Terra Tech Corp. (OTCQB:TRTC)
Creative Edge Nutrition (OTCPink:FITX)
Real Estate
Agritek Holdings, Inc. (OTCQB:AGTK)
CannabisRX (OTCQB:CANA)
Mountain High Acquisition (OTCQB:MYHI)
The CannaBusiness Group (OTCQB:CBGI)
Easton Pharmaceuticals (OTCPink:EAPH)
Cannabis-based Products & Extracts
Software
Growblox Sciences (OTCQB:GBLX)
Alternaturals (OTCPink:ANAS)
AnythingIT (OTCQB:ANYI)
GW Pharmaceuticals (NasdaqGM:GWPH)
Cannabis Sativa, Inc. (OTCQB:CBDS)
BreedIT Corp. (OTCQB:BRDT)
Medican Enterprises (OTCQB:MDCN)
CannaVEST Corp. (OTCQB:CANV)
ENDEXX Corp. (OTCPink:EDXC)
Nuvilex, Inc. (OTCQB:NVLX)
Global Hemp Group (OTCQB:GBHPF)
Medical Cannabis Payment Solutions
Green Cures & Botanical (OTCPink:GRCU)
(OTCPink:REFG)
Consulting Services
Latteno Food Corp. (OTCPink:LATF)
Singlepoint, Inc. (OTCPink:SING)
Advanced Cannabis Solutions (OTCQB:CANN)
MediJane Holdings, Inc. (OTCQB:MJMD)
American Cannabis Company (OTCQB:BIMI)
CannLabs, Inc. (OTCQB:CANL)
Chuma Holdings, Inc.(OTCQB:CHUM)
Medbox, Inc. (OTCQB:MDBX)
Novus Acquisition & Dev. (OTCPink:NDEV)
United Cannabis Corp. (OTCQB:CNAB)
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VIRIDIAN CANNABIS INDUSTRY REPORT
SECTOR WEIGHTINGS
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VIRIDIAN CANNABIS INDUSTRY REPORT
YTD’2014 HIGHLIGHTS
Ancillary Cultivation & Retail
Cultivation & Retail
American Green Enters Managed Services
Sector for Medical Marijuana
Terra Tech Begins Supercritical CO2 Cannabinoid
Extraction, Testing and Formulation
American Green, Inc. (OTCPink:ERBB) announced that
it has signed a Managed Services agreement with Herbal
Elements Dispensary and Cultivation located in Eagle
County Colorado opening up another sales channel and
further bolstering its seed to sale business model. (Cont.
Pg 13)
Terra Tech Corp (TRTC) is pleased to announce they have begun
extracting, testing and formulating compounds at their cannabinoid
extraction facility in Northern California. In March of this year the
company announced they are developing a research and industrial
extraction facility focused on the medical cannabis market. (Cont.
pg. 26)
Investment/M&A
Consulting Services
Medbox Completes Second Capital Raise
Medbox, Inc. (OTCQB:MDBX), the leading dispensary
infrastructure and licensing specialist, patented technology
provider, and partner to the cannabis industry, is pleased
to announce that it has completed a second capital raise
in a private placement transaction of convertible
debentures for $2.5 million. (Cont. Pg 20)
Mentor Capital Provides Seed Finance for Nevada
Cannabis Fund
Mentor Capital (OTCPink:MNTR) announced that it has
provided seed funding to help launch an independently managed
cannabis focused fund based in Nevada. The fund anticipates
making marijuana related investments in Nevada and in other
locals. (Cont. Pg 32)
Real Estate
Consumption Devices
Vaporin Enters Cannabis Industry Through
Terra Tech Partnership
Vaporin, Inc. (OTCQB:VAPOD), a distributor and
marketer of electronic cigarettes, vaporizers, e-liquids and
e-hookah products, announced its entry into the medical
cannabis industry through an exclusive distribution
agreement with Terra Tech Corp. (Cont. Pg 23)
Cannabis-RX Purchases Four Properties in California
& Illinois for $2 Million
Cannabis-Rx (OTCQB:CANA), a real estate company focused on
opportunistically acquiring, selling/leasing real estate, and assisting
in the growth of the licensed cannabis industry specific to real
estate and financing, today announced the sale of five of its
properties, and the purchase of six new real estate investments to
date in the second quarter. (Cont. Pg 34)
Physical Security
Software
SinglePoint, Inc.’s SingleSeed Payments
Launches Premiere Website Boosting Sales
Past Initial Projections
SinglePoint, Inc. (OTCQB:SING) announced its
subsidiary SingleSeed Payments, 24 terminals have been
shipped to recreational stores and medical dispensaries to
date, up seventeen from July. (Cont. Pg 37)
www.viridiancr.com
Blue Line Protection Group Sees Huge Growth in
Logistics Side of Business With New Transportation
Contract
Blue Line Protection Group, Inc. (OTCQB:BLPG), a leader in
providing regulatory compliance, security consultation and
protection services to high-value asset industries, today announced
the Company has entered into a new security and transportation
contract with a marijuana infused product manufacturer that serves
dispensaries across the entire state of Colorado. (Cont. Pg 35)
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VIRIDIAN CANNABIS INDUSTRY REPORT
CAPITAL MARKETS TRANSACTIONS
Capital Raises
Abattis Bioceuticals Corp. (OTCQX:ATTBF), February 11, 2014 - Closed the non-brokered private placement of
12,000,000 units for gross proceeds of $600,000; March 19, 2014 - Closed the non-brokered private placement of
5,333,333 units for gross proceeds of $2,400,000.
Aerogrow International (OTCQB:AERO), July 16, 2014 - Secured strategic financing in the form of a Term Loan from
The Scotts Miracle-Gro Company valued at $4,500,000
Agritek Holdings, Inc. (OTCQB:AGTK), July 8, 2014 - Received an estimated $400,000 from its institutional partners
and private equity fund based in Chicago this month to be used for roll out and marketing efforts of the Company's Mont
Blunt brand of e-cigarettes and initial infrastructure costs related to its agricultural greenhouse project based in Pueblo,
Colorado; Jaunary 2014 - entered into a Secured Promissory Note for $1,660,000 (the “2014 Company Note”) to
Tonaquint, Inc. (the same principals as Typenex) which includes a purchase price of $1,500,000 and transaction costs of
$160,000.
BreedIT Corp (OTCQB:BRDT), From January 23, 2014 to June 30, 2014 - Sold to 10 non-US private accredited
investors a total of 6,461,666 shares for cash consideration of $923,000; From March 10, 2014 through June 30, 2014 sold to 12 non-US private accredited investors, a total of 3,270,000 units for cash consideration of $667,750.
Cannabis Science (OTCQB:CBIS), March 8, 2014 - Raised $1,000,000 through private placement to facilitate fast
tracking of Cannabis Science’s projects.
Chuma Holdings (OTCQB:CHUM), June 13, 2014 - Closed a private placement by issuing an aggregate of 1,870,000
shares of common stock at $0.50 per share for gross proceeds of $935,000.
DirectView Holdings (OTCPink:DIRV), April 30, 2014 - Issued a convertible promissory note to an undisclosed
institutional investor in the principal amount of $338,000.
Enertopia Corp (OTCQB:ENRT), January 31, 2014 - closed the first tranche of a private placement of 4,292,000 units at
a price of $0.10 per unit for gross proceeds of $429,200; February 13, 2014 - closed the final tranche of a private
placement by issuing 12,938,000 units at a price of $0.10 per unit for gross proceeds of $1,293,800.
Global Hemp Group (OTCQB:GBHPF), April 2014 - completed a private placement for the issuance 3,000,000 units
at $0.1/unit in April 2014 for gross proceeds of $300,000.; May 15, 2014 - announced a non-brokered private placement
of fifteen million units at a price of $.10 per unit to raise an aggregate total of $1,500,000. On July 29, 2014, the
Company closed the first tranche of this private placement and received subscriptions for a total of 4,668,104 units,
raising gross process of $466,810.44 for working capital purposes.
Fast Funds Financial Corp. (OTCPink:FFFC), March 27, 2014 – issued a $831,000 secured convertible note to Typenex
Co-Investment, LLC ("Typenex"), which carries an original issuer discount of $75,000.
GreenGro Technologies, Inc. (OTCPink:GRNH), March 20, 2014 - Closed a non-brokered private placement, raising
gross proceeds of $875,000.
GrowBLOX Sciences, Inc. (OTCQB:GBLX), June 2, 2014 - Raised $5,000,000 through a private placement of its
common stock, to be used to support GrowBLOX Sciences' continued growth, as well as for general corporate purposes.
IMD Companies (OTCPink:ICBU), July 24, 2014 – Raised $500,000 specifically targeted at growing the Company's
core Gardening business; March 20, 2014 – Received investment commitment of over $1,000,000 from Irwin "Izzy"
Zalcberg, a well-known distinguished accredited Small Cap investor with a large rolodex of connections in the upper
echelon of the corporate world.
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VIRIDIAN CANNABIS INDUSTRY REPORT
CAPITAL MARKETS TRANSACTIONS (CONT’D)
Capital Raises (Continued)
Medbox, Inc. (OTCQB:MDBX), July 28, 2014 – Completed a capital raise in a private placement transaction, of
convertible debentures in the aggregate principal amount of $3,000,000, in three tranches, each in the amount of
$1,000,000; September 19, 2014 – Completed a second capital raise in a private placement transaction of convertible
debentures for $2,500,000 million, convertible into common stock at a conversion price of $11.75 per share; September
26, 2014 – Secured am additional $500,000 from a current lender.
Medical Cannabis Payment Solutions, Inc. (OTCQB:REFG), August 28, 2014 – Secured a $500,000 strategic
investment, which includes a stock purchase.
Medijane Holdings, Inc. (OTCQB:MJMD), August 28, 2014 - entered into a Securities Purchase Agreement with
Typenex Co-Investment, LLC ("Typenex"), for the sale of a secured convertible promissory note in the original principal
amount of $1,105,000, deliverable in eleven tranches.
Mentor Capital (OTCPink:MNTR), June 24 27, 2014 - Agreed to provide $2,000,000 in funding for The Cannabis
Advocacy Machine.
Medican Enterprises (OTCQB:MDCN), June 4, 2014 - Issued a 10% secured convertible promissory note in the
principal amount of $1,105,000. The Company must pay 10% interest per annum on the unpaid principal balance which
is due November 4, 2015.
Primco Management, Inc. (OTCPink:PMCM), April 1, 2014 – executed a secured convertible promissory note and
securities purchase agreement with Inter-Mountain Capital Corp. The convertible promissory note is in the amount up to
$2,207,500, accrues interest at 9% per annum, and is payable by March 21, 2016. As of June 30, 2014, Inter-Mountain
Capital Corp. has funded the Company $500,000.
Tera Tech Corp. (OTCQB:TRTC), February 5, 2014 – Entered into Debt Purchase aggrement with Dominion
Capital for a total amount of $6,550,500. The final tranche closed for amount of $2,750,000 on July 30, 2014.
United Cannabis Corporation (OTCQB:CNAB), March 26, 2014 – sold 600,000 units for a total amount of $900,000 to
45 accredited investors; August 13, 2014 - entered into a Securities Purchase Agreement with Typenex Co-Investment,
LLC ("Typenex"), for the sale of a 10% convertible note in the principal amount of $1,657,500.
Verde Science, Inc. (OTCQB:VRCI), January 17, 2014 – entered into a Private Placement Agreement to issue up to
10,000,000 shares of Common Stock at $0.08 per share. The Company has received $468,200 by way of subscription
agreements. The 5,852,500 shares were issued on May 23, 2014.
Vapor Group, Inc. (OTCQB:VPOR), May 6, 2014 – Closed private placement with Hanover Holdings I, LLC, in
aggregate principal amount of $1,342,391 in order to expand its business.
Vaporin (OTCQB:VAPO), April 1, 2014 – Closed private placement of common stock in the amount of $2,400,000.
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VIRIDIAN CANNABIS INDUSTRY REPORT
CAPITAL MARKETS TRANSACTIONS (CONT’D)
Mergers & Acquisitions
Abattis Bioceuticals Corp. (OTCQX:ATTBF), March 12, 2014 - Acquired all of the organic and hydroponic fertilizer
and nutritional formulas owned by Green-Gro in consideration for 300,000 common shares of Abattis; April 7, 2014 –
Acquired 51% membership interest in Phytalytics LLC; May 1, 2014 – Acquired 34% interest in Instant Payment
Systems in consideration for 200,000 common shares.
Affinor Growers, Inc. (OTCQB:RSSFF), June 9, 2014 - Entered in to a LOI to acquire Fab-All Manufacturing Ltd., a
strategic partner specialised in the precision metal fabrication, machining and finishing, for an aggregate of $5,000,000 in
cash and $5,000,000 in common shares; July 11, 2014 - Entered in to a LOI to acquire 100% of Vertical Designs Ltd.,
shares for an aggregate purchase price of $15 million payable by issuance of 17,857,143 common shares of Affinor
Growers; August 5, 2014 - Acquired a 49% interest in Good to Grow LLC, a medical Marijuana dispensary and grower
located on the Olympic Peninsula in Washington State; September 1, 2014 - Entered into a definitive agreement to
acquire all the assets of 0993341 "BC" Ltd related to the operation of the Vancouver rooftop growing facility, located at
523/535 Richards Street, for a cash payment of $500,000 and the issuance of 1,636,363 common share of the
Corporation
Agritek Holdings (OTCQB:AGTK), September 12, 2014 - Completed the asset acquisition of the entire line of
products, technology and customers of Dry Vapes Holdings, Inc.;
American Green (OTCPink:ERBB), June 25, 2014 - Completed the purchase of Green Universe, a leading hydroponics
retailer located in Sonoma, California; July 2, 2014 - Purchased the assets including all inventory, the business name and
all web presence of Valley Hydroponics and Organics; September 3, 2014 - acquired Truth Lighting LLC, the leading
full spectrum lighting system; September 12, 2014 - Acquired the OG Tea Corporation (https://ogtea.com) whose
primary business supplies a system of veganic products specially designed to promote the healthy growth of general
produce.
Cannabis Sativa (OTCQB:CBDS), June 30, 2014 – Consummated the acquisition of Kush, a development stage
company engaged in the research, development and licensing of specialized natural cannabis products, including
cannabis formulas, edibles, topicals, strains, recipes and delivery systems.
CannaBusiness Group (OTCQB:CBGI), February 26, 2014 - Acquired an ownership interest in NorCal Connection,
LLC, which was formed as an E-Commerce and wholesale company to address the legal cannabis market for medical
marijuana dispensaries and grow operations supplies.
Cannabis Kinetics (OTCQB:CANK), September 21, 2014 - entered into a Non-Binding LOI with Jeremy N. Stout, Inc.
d/b/a The Big Tomato, a Colorado corporation for the sale of all of the operating assets of The Big Tomato, an
established Denver area and online hydroponics and indoor garden supplier, for $1,500,000 in cash and shares valued at
$9,000,000 of a newly created class of preferred stock
Easton Pharmaceuticals (OTCPink:EAPH), July 8, 2014 - Closed on an agreement to invest and purchase an ownership
interest in AMFIL Technologies Inc. and The mPact -GROzone Antimicrobial Systems Line of Products.
ENDEXX Corp. (OTCPink:EDXC), July 2, 2014 - Acquired the operations and services of GreenLeaf Consulting
LLC., a pioneering New Jersey consulting firm for the medical marijuana industry.
Global Hemp Group (OTCQB:GBHPF), May 28, 2014 – Acquired 20% of the HempNatura brand for $250,000,
beginning the development of a full portfolio of hemp-related brands and services for GHG.
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VIRIDIAN CANNABIS INDUSTRY REPORT
CAPITAL MARKETS TRANSACTIONS (CONT’D)
Mergers & Acquisitions (Continued)
GreenGro Technologies (OTCPink:GRNH), May 28, 2014 – Acquired Roseville, California based Vertical
Hydrogarden, with the retail location serving as the initial brick and mortar location for the company's franchise of stores
slated to open in various locations.; August 12, 2014 – entered an multi-phased partnership and acquisition agreement
with Tricor Mechanical Inc., a Southern California based construction company and provider of HVAC systems to
commercial, industrial, municipal, and emerging market customers. The agreement provides for Greengro to own 51%
of Tricor by the end of 2014, and the remaining 49% within 2 years.
IMD Companies (OTCPink:ICBU), January 9, 2014 – Formed partnership with Anything Technologies Media Inc.,
(EXMT) by acquiring 51% interest in R-Quest Hydroponics, Inc., developer of the environmental master controller for
medical and recreational marijuana hydroponic gardens; January 16, 2014 – In conjunction with Anything Technologies
Media, jointly acquired Green Linx Inc., and will split revenue on a 50/50 basis; April 10, 2014 - Acquired Lumz'n
Blooms, Ltd. a manufacturer and distributor of products and services for commercial and private growers.
Latteno Food Corp (OTCPink:LATF), April 21, 2014 - Acquisition of Orange County, CA based DMND, Inc., who
successfully signed up over 200 active MMJ patients with daily delivery service to various Orange County, California
cities; May 20, 2014 - Closed an Acquisition Agreement with Vemas Herb & Health, one of Los Angeles' first and
premier pre-ICO Medical Marijuana (MMJ) license holders, to acquire their MedCann Express and CannaBee Sweets
operating divisions.
Medican Enterprises, Inc. (OTCQB:MDCN), May 5, 2014 – Acquired 50% of International Herbs Medical Marijuana
(IHMML).
Mentor Capital, Inc. (OTCPink:MNTR), February 20, 2014 - Acquired a 51% equity interest in MicroCannaBiz, LLC,
which was recently formed to address the legal cannabis market; March 11, 2014 – Acquires 60% of Bhang Chocolate for
$39 million.
Neutra Corp. (OTCQB:NTRR), February 11, 2014 – Acquired Diamond Anvil Designs, a cutting edgedevelpoer of
smoke-free nutraceutical delivery systems.
Primco Management (OTCPink:PMCM), July 28, 2014 - Completed the acquisition of Seattle based "My Suzy Q's", a
fully licensed and operating medical marijuana clinic with over 1500 patients; September 30, 2014 - Acquired a 51%
interest in Pops Edibles, a San Francisco bay area based medical marijuana boutique that specializes in the formulation
and manufacture of both Tetrahydrocannabinol ("THC") and Cannabidiol ("CBD") based 100% organic lollipops
designed for both the medical and recreational communities.
Quasar Aerospace Industries, Inc. (OTCPink:QASP), July 16, 2014 - Closed on the acquisition of Hydro-Grow Supply,
Inc., through its subsidiary, Green Energy Investments, Inc.
Surna, Inc. (OTCQB:SRNA), April 1, 2014 - Signed a definitive agreement to acquire Hydro Innovations
Singlepoint (OTCPink:SING), September 23, 2014 – Entered into a LOI to acquire the remaining equity in GreenStar
Payment Solutions from its joint venture partners, Advanced Content Services and GreenHouse Payment Solutions.
Vaporin (OTCQB:VAPO), September 3, 2014 - Acquired The Vape Store, which operates four vape shops on the west
coast of Florida with annualized revenue of approximately $2.6 million.
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VIRIDIAN CANNABIS INDUSTRY REPORT
ANCILLARY CULTIVATION & RETAIL
After gaining 8.2% in 2012 and 16.6% in 2013, the Ancillary Cultivation & Retail sector gained another 11.1% through for the first 3
quarters of the year. Sector performance was led by a 225% gain for GreenGro Technologies (OTCPink:GRNH), which announced
a recent acquisition of Tricor Mechanacal, provided construction expertise to the company’s projects, as well as an exclusive
contractual relationship with Cannabis Ventures to provide all design, grow systems and management services to address the growing
pipeline of projects across North America. As the largest sector in the cannabis industry, the ancillary cultivation and retail sector is
beginning to show growth, specifically in regard to cultivation products, driven by technological innovation, such as automated
fertilization systems, modern greenhouse technology, and LED Technology creating competitive advantages for cultivation
businesses. Cannabis growers that transition from traditional methods of cultivating marijuana to incorporating these emerging
technologies are lowing their overall costs, boosting yields, and maximizing capacity.
NHLE Announces Launch of
Growpod
Nhale, Inc. (OTCPink:NHLE), announced
the upcoming launch of Growpod, an
advanced cultivation technology that will
enable growing cannabis under optimum,
high tech conditions. Growpod is a modern,
self-contained grow environment that is
economical, efficient and secure.
Nhale has been collaborating with experts in
the cultivation sector to deliver a leading
edge system for its soon to be available grow
container that will feature ease of use for the
first-time cultivator and high performance
for the experienced grower.
“Nhale is entering one of the market’s most
powerful growth opportunities,” said Lance
Williams, President and CEO of Nhale.
“By engaging in responsible business
practices, we are positioning ourselves to
become an early market leader. Our
company’s success can only grow as more
states vote to legalize marijuana.”
Closed modular cultivation systems such as
the one being developed by Nhale allow
growers to develop high density facilities
that will accelerate access to a healthy and
secure supply of affordable, high quality
product – and do it more efficiently and
economically
than
traditional
grow
operations.
www.viridiancr.com
AeroGrow Finalizes $4.5 Million Loan From Scotts Miracle-Gro
Aerogrow International, Inc. (OTCQB:AERO), which sells the Miracle-Gro
AeroGarden® line of high-output, soil-free indoor gardens, seed pod kits and
hydroponic nutrients, announced that it has secured strategic financing in the form of
a Term Loan from The Scotts Miracle-Gro Company. The funding will provide
general working capital to support anticipated growth as the Company expands its
retail and its direct-to-consumer sales channels and new product introductions. The
proceeds will be made in three advances of $1.0 million, $1.5 million, and $2.0
million in July, August, and September, respectively with a due date of February 15,
2015.
"We are preparing for what we believe will be continued growth in our Fiscal Year
2015 with expansion in both our Direct-to-Consumer business and particularly our
Retail channel," said President and Chief Executive Officer, J. Michael Wolfe. "I am
pleased to report that our partners at The Scotts Miracle-Gro Company have again
demonstrated their confidence in the Miracle-Gro AeroGarden line of products and
in the expanding indoor gardening market by providing us with the short-term
working capital we need to support our growth and new product introductions.
Greengro Technologies Announces Exclusive Contract With
Symbiotic Partners
GreenGro Technologies (OTCPink:GRNH) (the "Company"), announced that it
has entered into an exclusive contractual relationship with Cannabis Ventures to
provide all design, grow systems and management services to address the growing
pipeline of projects across North America. Tricor Mechanical, a recent acquisition
by the company, to provide construction expertise for all projects.
The company has projects in the process of being approved that directly addresses
the Canadian Healthcare MMPR license program; a large dispensary slated to begin
in Arizona; as well as build projects in Washington and Colorado. All projects
required the convergence of expertise in the fields of design, construction and
management to bring them to full completion. The symbiotic relationship between
the company, Cannabis Ventures and Tricor Mechanical, allow for these types of
projects to be managed from early inception all the way through to project launch.
11
VIRIDIAN CANNABIS INDUSTRY REPORT
ANCILLARY CULTIVATION & RETAIL (CONT’D)
NTRR: Contain A Grow Begins Manufacturing First SelfContained Indoor Growing Unit
Quasar Closes Acquisition of
Hydroponic Grow Store
Neutra Corp. (OTCQB:NTRR) and joint venture partner Vertigo
Technologies, Inc., announced that manufacturing is now underway on that
operation’s first commercial product. Earlier this week, NTRR announced that
Vertigo acquired Contain A Grow, a producer of self-contained, indoor
horticulture systems that can be implemented virtually anywhere. Boasting a
design based on common shipping containers, the company’s all-in-one system
provides a closed, controlled environment that can be used to produce any
number of climate-controlled indoor crops.
Quasar
Aerospace
Industries,
Inc.
(OTCPink:QASP)
("Quasar"
or
"the
Company") is thrilled to announce that it
closed on the acquisition of Hydro-Grow
Supply, Inc. on July 16, 2014 through its
subsidiary, Green Energy Investments, Inc. At
closing, Hydro-Grow's final inventory at cost
was valued at $169,348 with an approximate
retail exit value of $325,778. The assets of
Hydro-Grow totaled approximately $192,797.
Hydro-Grow currently services dispensaries,
growers and the public and has a loyal
customer base. Hydro-Grow's new staff is
driven to increase revenues and has been in
contact with additional dispensaries and
growers to obtain their contracts.
Now, Contain A Grow has begun manufacturing its first product, a 30-ft.
blooming system featuring 108 square feet of growing area outfitted with highpressure sodium lights; vented, air-cooled reflectors; a five-ton split A/C unit;
standard 120-volt power; digital light timers and more.
NTRR formed a joint venture with Vertigo last year to help market and develop
revolutionary indoor growing products just as the U.S. cannabis industry began
to reach a tipping point. Through that joint venture, NTRR will participate in
profits earned by Contain A Grow.
IMD Companies Inc., forms Partnership with Red Apple Pharm
to develop Medical Marijuana Grow Facilities throughout
Western United States
IMD
Companies
Inc.
(OTCPink:ICBU)
and
Red
Apple
Pharm (OTCBB:CETC) (Berlin A1KB22) announced that they have
completed an agreement for IMD Companies Inc., to be a preferred vendor to
supply equipment to build out medical Marijuana Grow facilities throughout the
Western United States. This includes, but is not limited to; lights, ballasts,
environmental controllers, Oxygenation systems, fans, meters, and nutrients.
The first Grow Facility is currently being developed in Pueblo Colorado.
Red Apple Pharm is a wholly owned subsidiary of Clean Enviro Tech (CETC).
The first facility in Colorado is expected to cost over 10 million with the
estimates of equipment that may be provided by IMD to be in excess of 5
million dollars.
Jim Filkins, VP of Sales for IMD Companies remarked, "Working with Red
Apple Pharm to potentially provide them with a one stop shop for all their
equipment needs is a great opportunity for ICBU. Our current product line
will enable our team to provide practically everything that is needed for each
facility. This is a great opportunity to increase sales revenue for 2014."
Gordon Lee, President of RAPCO states, "We are delighted to have entered
into this agreement. We can now rest assured that the equipment used in our
facilities is of the highest quality and is supported by the quality manufacturer
and distributor that is ICBU and its subsidiaries. We look forward to a long and
fruitful relationship."
www.viridiancr.com
Quasar is proud to be a part of the growing
billion-dollar hydroponic retail market.
Hydroponics is a market that is continually
growing and will be expanding throughout the
country and Quasar intends to expand with
the market nationwide. This is a milestone for
Quasar and establishes the determination and
dedication that Quasar's management has to
succeed in the legal and medical marijuana
industry. This is the first step of Quasar's plan
and only the beginning of strides being made.
The store has a point of sale security system
implemented, which will allow Quasar to
remotely view and control the storefront. All
products, equipment and supplies are being
tracked by its respective UPC and provide a
convenient checkout method. Quasar has
begun its revamping of the store front to
maximize the stores efficiency and optimize its
appearance.
Quasar has been in discussions with grow
supply distributors and is determining the best
loyalty program for our initial and subsequent
grow stores. This type of partnership with a
grow supply distributor will provide great
benefits to the grow store, including, but not
limited to, industry support, training, store
front displays and additional discounts on
supplies, equipment and products.
12
VIRIDIAN CANNABIS INDUSTRY REPORT
ANCILLARY CULTIVATION & RETAIL (CONT’D)
American Green Enters Managed Services Sector for Medical Marijuana
(Cont.)…. American Green has created revenue driven model through which it will provide administrative, compliance, business, and
cultivation direction to state licensed cannabis facilities. Under this agreement, American Green will assist Herbal Elements in the
build-out and expansion of its cultivation operations -- adding expertise and in-house products such as Jurassic Water Systems, OG
Tea nutrients and Truth full-spectrum lighting. Herbal Elements is already a pioneer in the legal medical cannabis business in Eagle
County, Colorado. With access to American Green's network and products, including contacts with CBD-rich proprietary strains of
cannabis, the companies are embarking on a long-range plan to incorporate vertical integration with quality control to the medical
cannabis sector. American Green will continue to collaborate with legal cannabis businesses to provide them and their patients
and/or clients with the means to gain access or obtain verifiable, high quality products. After assembling premier cultivation assets,
including a vast knowledge base, through acquisition American Green has set its sights on a business strategy that goes well beyond
simple consulting or sales.
"Working with Greg allowed ZaZZZ to get legs and through that we've established a flourishing relationship. Sharpening the point on
the model that will be a significant part of our continued growth was an easy decision," says Stephen Shearin, American Green
president. "Vertical integration is a tried and true model. Employing it as part of a managed service strategy provides multiple revenue
streams through our suite of offerings. With two additional projects in Arizona and another in Washington set to launch, we believe
this will add over $100,000 in new revenues per month by January, with rapid ongoing growth in the coming year. Almost every
dispensary we contact for ZaZZZ has a cultivation facility and vice versa, all of it on top of our current general sales efforts. We
project a banner year as our efforts come to fruition," Shearin concludes.
GrowLife Ignites Nationwide Launch Backed with Strategic Partnership and Growth Capital
GrowLife Inc. (OTCQB:PHOT) announced its first significant achievement towards that vision with the nationwide launch of its
direct-to-cultivator sales network and automated replenishment services beginning in 17 states. Additional states will be added by the
end of the year. GrowLife also announced a new strategic partnership with CANX USA LLC (CANX). The partnership with CANX
provides financial resources to GrowLife under an expanded joint venture agreement that will support the Company’s national
expansion, and mergers and acquisitions (M&A) initiatives.
GrowLife activated its nationwide sales network initially servicing Arizona, California, Colorado, Connecticut, Delaware, District of
Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island,
Vermont and Washington. With GrowLife, specialty cultivation facilities can be assured they will have timely and reliable access to
the industry’s premium supplies such as farming soil, plant nutrients, hydroponic equipment, and thousands more products.Verde
Science's CEO, Harp Sangha, commented, "We are excited to announce our contract with SOHO and look forward to working with
them to increase profitability, output, and quality. This is the first of what we expect to be several long-term agreements that we will
sign with dispensaries in Los Angeles Country. We see an outstanding opportunity to enter this market, establish our best practices
and then move into other legal jurisdictions as well."
Also announced was an enhanced strategic partnership between GrowLife and CANX. The partnership, as agreed to under an
amended joint venture, increases funding resources to three new and significant channels for GrowLife. In addition to its expansion
efforts, GrowLife will apply these new funding resources to high-value, cash-flowing mergers and acquisitions that are critical to the
business.
Under this partnership, CANX agrees to provide GrowLife with $10 million in working capital with secured loans, $12 million in
GrowLife-direct M&A capital resources, and joint venture M&A financing exceeding the $40 million cap, imposed by the previous
arrangement. All transactions must be approved by the joint venture and meet a pre-determined deal criteria. Furthermore, CANX
has waived defaults from the prior November 19, 2013 contract with GrowLife. In addition, the Company obtained waivers of default
from other lenders, which were triggered by the trading halt back in April.
www.viridiancr.com
13
VIRIDIAN CANNABIS INDUSTRY REPORT
ANCILLARY CULTIVATION & RETAIL (CONT’D)
Two Rivers Sub Signs Two Tenants for Marijuana Greenhouses
Two Rivers Water & Farming Company (OTCQB:TURV) announced that its wholly owned subsidiary, GrowCo, Inc ("GrowCo")
has signed leases with two tenants for marijuana greenhouse growing and processing facilities being constructed in Pueblo County,
Colorado. One of the tenants is a leading grower of marijuana in Colorado. The other tenant is a leading greenhouse grower, which
also supplies soils, nutrients and greenhouse grow advice to the marijuana grow industry. Under the terms of each lease, GrowCo will
provide each grower with a 90,000 square foot fully equipped greenhouse and a 15,000 square foot marijuana infused products
processing facility in exchange for annual lease payments of $20 a square foot for three years. Each grower will have the option to
renew their lease for two additional three year terms.
In Colorado, 95+% of marijuana is grown inefficiently in converted warehouses using artificial light, HVAC systems, and
dehumidifiers imitating skillsets that were developed prior to the legalization of marijuana. GrowCo greenhouses use state-of-the-art
technology and skillsets used in commercial agriculture, which significantly reduces energy costs utilizing natural sunlight and natural
open-air convection flows. GrowCo greenhouses grow a higher quality product in significantly higher volumes at substantially lower
costs than converted warehouses. GrowCo’s greenhouses are manufactured by Van Wingerden Greenhouse Company of Mills
River, North Carolina.
Tim Beall, President and COO of GrowCo stated, "The marijuana industry in Colorado is developing into a commercial
Verde Science,
Inc.
Signs First
Longwarehouse,
Term Advisory
Contract
Withsystems,
Los Angeles
County
Medical
agricultural
industry. If
a closed-in
converted
utilizingServices
artificial light
and HVAC
were the
best way
to grow
herbs, fruits and vegetables you would see convertedMarijuana
warehouses Dispensary
growing food everywhere. You don’t see that. Instead, you see
computer-controlled greenhouses capturing the natural light of the sun with open fresh air venting as the perfect growing
environment.
is true for marijuana.
If youthat
want
to provide
highest
qualitycontract
organic product
at the lowest
prices forOasis
Verde ScienceThe
Inc.same
(OTCQB:VRCI)
announced
it has
signed the
its first
long-term
with Sherman
Oaks Holistic
consumers,
it
will
be
grown
in
a
greenhouse."
(SOHO), a legal, licensed medical marijuana dispensary located in Los Angeles County since 2006 which services more than 1,600
patients. Verde will earn an ongoing monthly management fee based on costs savings generated from its advisory services as well as a
GrowCo
qualified
licensed
growers
with
financing
converted
warehouses
greenhouses.
royalty onprovides
all product
sales. Los
Angeles
County
is thought
to to
betransition
the largestfrom
medical
marijuana
market intothe
world.
Verde will provide design, engineering, construction, financing and management services to SOHO to construct a state-of-the-art
medical marijuana cultivation facility. By leveraging Verde's technical expertise, SOHO will achieve greater crop yields resulting in
substantially lower costs. Final terms of the construction funding from Verde Science Financial Services will be disclosed upon
signing.
As previously announced, Verde Science will introduce state-of-the-art aeroponic growing technology to the Southern California
market, and the initial site will be SOHOs grow facility. Aeroponics utilizes no soil or any other growth media like hydroponics.
Rather, plants grow with their roots suspended in the air and are intermittently misted with nutrient solution. The benefits of
aeroponics are healthier plants, increased yields and shortened crop turns, but the single most important aspect of this technology is
the consistent quality and potency of the product which is also free of molds, pesticides, and diseases.
Verde Science's newly appointed director, Luis Bobadilla, has eight years of operational experience in the legal medical marijuana
business in Los Angeles. He is very influential among a sizable group of the 132 legal dispensaries in LA County. With the assistance
of Verde Science, a significant number of these dispensaries will gain access the same benefits as SOHO obtains with the deal
announced herein. They will have lowered costs, reliable and available products, operational assistance and most importantly access
to capital. Currently these businesses have little or no access to capital with which to expand and operate. The availability of capital
combined with the huge technical advantage that Verde Science brings to the market assures that dispensaries who team up with
Verde will come to dominate in their local market.
Verde Science's CEO, Harp Sangha, commented, "We are excited to announce our contract with SOHO and look forward to
working with them to increase profitability, output, and quality. This is the first of what we expect to be several long-term agreements
that we will sign with dispensaries in Los Angeles Country. We see an outstanding opportunity to enter this market, establish our best
practices and then move into other legal jurisdictions as well."
www.viridiancr.com
14
VIRIDIAN CANNABIS INDUSTRY REPORT
BIOTECHNOLOGY
Following a modest 16.2% return in 2013, the Biotechnology sector gained 339.3% for the first 9 months of 2014, the second best
performance of the Viridian Cannabis Index sectors. Abattis Bioceuticals (OTCQX:ATTBF) carried the group, up 1600.0%
through Q3’14, with the company announcing that Phytalytics, its 51% controlled US subsidiary, has received provisional certification
from the Washington State Liquor Control Board, enabling the lab to legally offer service to the new legal Cannabis industry.
Cannabics Pharmaceutical (OTCQB:CNBX) gained 400%, with increased investor confidence stemming from the Company’s
announcement of appointing two former Teva Pharmaceutical executives to its advisory board, Mr. Ika Abravanel as senior advisor
in the field of operational and strategic planning, and Dr. Sigalit Ariely-Portnoy, as senior advisor in the field of regulation, validation
and quality. Growth in the Biotechnology sectors is a function of government and FDA approval of the cannabis derived
pharmaceuticals. As companies progress forward through the approval process for their respective products, they will garner
significant investor attention, since many patients and doctors would prefer government-approved, safety tested, and dosagecontrolled medicine instead of the less formal approach that is the current norm for medical cannabis.
Abattis' Phytalab Receives Cannabis Lab Certification in Washington
Abattis Bioceuticals (OTCQX:ATTBF) a specialty biotechnology company with capabilities through its wholly owned subsidiaries of
cultivating, licensing and marketing proprietary ingredients, bio-similar compounds, patented equipment and consulting services to
medicinal markets in North America, today announced that Phytalytics LLC. ("Phytalab.com"), its 51% controlled US subsidiary, has
received provisional certification from the Washington State Liquor Control Board. This milestone enables the lab to legally offer
service to the new legal Cannabis industry.
Phytalab is proud to offer cannabis analysis laboratory services under provisional certification by the Washington State Liquor
Control Board (WSLCB). Phytalab provides quality control testing services for I-502 Market Marijuana Producers and Processors.
Chief Science Officer Dr. Michelle Sexton provided contracted services to the WSLCB for design of the certification quality control
checklist for good laboratory practice.
Phytalab leads the industry in scientific expertise and education leading a team with 25 years combined experience in the quality
control, product development and use of botanical medicines. Dr. Sexton and Dr. Kaleb Lund are published researchers and both
come with extensive background and experience in analytical chemistry and phytochemical analysis.
Phytalab, originally founded as Phytalytics LLC, was the first laboratory to provide testing services in Washington State for medical
Cannabis under State law. Dr. Sexton has dedicated her post-doctoral career to providing education on Cannabis use and guidance
on quality control of Cannabis as botanical medicine. She contributed to the development of the analytical and quality control
guidelines that Washington State adopted: the American Herbal Pharmacopoeia Cannabis Monograph.
"We measure components of the plant that contribute to it's overall character, such as the terpenoids. Legal Cannabis is a lot like the
microbrew or wine industries, in that growers in WA dedicate themselves to breeding diverse genetics" says Dr. Sexton. "While THC
may give Cannabis its' "kick", CBD is mellower and the terpenoids will guide the general "mood" of the variety. Knowing about these
characteristics makes legal Cannabis more fun and interesting, as well as safe."
Abattis CEO Mike Withrow commented, "This is one more milestone the team has achieved in building our overall plan. In
addition to revenue, having a licensed lab will serve as a core competency in the Abattis group of companies that collects and
stores a bank of tissue culture and logs invaluable data that can be repurposed within the Abattis group of companies and with
strategic partners licensed to work with Cannabis."
www.viridiancr.com
15
VIRIDIAN CANNABIS INDUSTRY REPORT
BIOTECHNOLOGY (CONT’D)
Cannabis Science Signs Drug Development and
Laboratory Services Agreement with
ImmunoClin Corporation
Creative Edge Nutrition Enters Joint Venture with
RXNB Inc. to Launch Wellness Medical Protection
Group
Cannabis Science, Inc. (OTCQB:CBIS), entered into a
laboratory services agreement with ImmunoClin
Corporation (IMCL) through its wholly-owned UK
subsidiary, ImmunoClin Ltd., a healthcare company with
over thirteen years' experience in providing premiere
laboratory and related pre-clinical and clinical research
services on a commercial scale.
Creative Edge Nutrition, Inc. (OTCPink:FITX), announced that it
entered into a Joint Venture with RXNB Inc. to offer exclusive
marijuana liabilities insurance for North America.
Cannabis Science anticipates that ImmunoClin will
commence cannabinoid-based drug formulation at its
laboratories within the coming weeks, including advanced
development of Cannabis Science's proprietary
neurological drug, tentatively designated as "CS-Neuro-1".
This contract complements the Company's agricultural and
research programs in Spain, Italy and other European
countries.
"Cannabis Science looks forward to working with
ImmunoClin in the development of CS-Neuro-1, CSTATI-1, CS-S/BCC-1, and other products in the Cannabis
Science pipeline that we strongly believe will improve the
lives of people around the world," concluded Mr. Lap.
After strategic developments and acquisitions of a key insurance
brokerage firm, RXNB Inc. launches The Wellness Medical
Protection Group with a niche focus in medicinal marijuana
insurance in collaboration with Creative Edge Nutrition, Inc.
This joint venture focuses on the offering of medicinal marijuana
insurance for licensed producers, dispensaries, grow facilities and
even the medicinal marijuana prescriber.
"We believe at this very critical time in the industry, there must be
insurance and asset protection available. This joint venture will
allow us to offer the medicinal marijuana industry the freedom to
practice legitimately," stated President and CEO Bill Chaaban.
Under the joint venture agreement, Creative Edge Nutrition, Inc.
and RXNB Inc. will offer medicinal marijuana coverage for the
grow and harvest of product, extracts, the facility, the landlord, the
dispensary and the medicinal prescriber.
Easton Pharmaceuticals Announces Closing of Agreement to Invest & Acquire Ownership Interest in AMFIL
Technologies Inc.
Easton Pharmaceuticals Inc. (OTCPink:EAPH) announced that it has advanced funds and closed on an agreement to invest and
purchase an ownership interest in AMFIL Technologies Inc. and The mPact -GROzone Antimicrobial Systems Line of Products.
The agreement includes an option to purchase warrants allowing Easton to purchase an additional ownership interest up to 32.5% of
AMFIL. The mPact -GROzone Antimicrobial Systems is an exclusive application geared towards the Medical Marijuana Industry
and other related legal marijuana growing/processing facilities. The mPact -GROzone Antimicrobial Systems is derived from the
existing mPact technology which is mainly focused towards the food and beverage industries with successfully installed and
performing units cross - sectionally in the Food/Beverage and Fresh Produce Industries, e.g. Sysco Foods, Nestles, Sun Pacific,
Thornbury Apple Cidery, Golden Town Apple, etc. A growing niche market has now been created with the burgeoning Medical
Marijuana industry in both the United States and Canada as well as other parts of the world.
Easton Pharmaceuticals has advanced funds and acquired an initial minority ownership interest in AMFIL and its mPact -GROzone
Antimicrobial System which has been designed and is currently in the process of being integrated into a commercially licensed, state
of the art medical marijuana grow facility in Colorado. This facility is one of Colorado's premier Medical Marijuana organizations
with an 18,000 sq. ft. indoor hydroponic growing area as well as a 26,000 sq. ft. greenhouse facility that is currently under expansion
to 56,000 sq. ft. with a completion date in July 2014. Development is also under way for one of the largest indoor cultivation facilities
in Colorado, boasting more than 200,000 square feet of hydroponic growing area.
www.viridiancr.com
16
VIRIDIAN CANNABIS INDUSTRY REPORT
BIOTECHNOLOGY (CONT’D)
GrowBLOX Sciences, Inc. Provides Update on Nevada State Licensing Applications
GrowBLOX Sciences, Inc. (OTCQB:GBLX) a medical marijuana research and development company, announced they have
completed and officially submitted 4 Nevada State license applications for 1 cultivation facility and 3 dispensaries as of August 13, 2014.
The Company has already received a special use permit for a dispensary and cultivation facility in Clark County, Nevada. The special
use permits issued by the County Commissioner's Office is expected to have some influence on the final State decision but does not
guarantee State approval.
The Company submitted the applications early, days ahead of the deadline, heeding the advice of the State Office to ensure a quicker
review as the State expects a rush of last minute applicants. The Company is confident in the thoroughness and accuracy of their
applications and looks forward to receiving a prompt response from the State. The Company may receive an answer on their
applications as early as this month but no later than November 3, 2014. Upon final State approval, The Company will receive business
licenses to begin operations of their dispensaries and cultivation facility in Nevada.
CEO Craig Ellins said, "The State application process is an extremely difficult and lengthy one. Each application is hundreds of pages
long and requires many supporting documents. Our team has put in countless hours ensuring each of the four application is fully
completed and answered properly to satisfy the State Office."
Medican Enterprises Inc. Establishes New Subsidiary in United States
Medican Enterprises Inc. (OTCQB:MDCN) announced the formation of Medican (US) Systems Inc., a wholly owned subsidiary
formed to pursue business activities in the United States medical marijuana and recreational marijuana sectors.The new entity,
operating out of Las Vegas, NV, will seek investments in commercial real estate which it can lease to marijuana growers in states where
growing is legal; provide dispensary management and professional consulting services to the medical marijuana and recreational
marijuana sectors; and offer a broad range of leasing and financing solutions to dispensaries, kitchens and cultivations centers.
Ken Williams, CEO of Medican Enterprises, stated “We are excited to position Medican for a strategic entry into the U.S. marijuana
sector and seek to execute on promising opportunities in the United States in the near term. We believe in the present and future of
legal marijuana businesses, and thus we will strive to find the best opportunities in this space to build value for our shareholders.”In
addition, Medican now has the ability to extend distribution channels and fulfillment technologies across all corporate interests. These
platforms allow doctors to quickly and efficiently prescribe medical marijuana to their patients, and enable them to safely order and
receive pharmaceutical grade cannabis directly from the Company. By integrating fulfillment capabilities, Medican continues to
demonstrate its commitment to innovate around the convergence of R&D, cultivation and distribution of pharmaceutical grade
medical marijuana to patients.
Medican also provided an update on the proposed acquisition by its subsidiary Canaleaf Systems of a majority interest in Canadabased International Herbs Medical Marijuana Ltd. (IHMML), which is pursuing the creation of a 400,000 square foot cultivation
facility in Athoville, New Brunswick, subject to approval by Canadian regulatory authorities. strategic goals the two businesses are well
aligned and our complimentary strengths provide significant opportunity to further create value for our investors. Together our
combined offering provides a well financed research and cultivation facility, cutting-edge fulfillment technologies and a direct
distribution channel for our products.”
“As previously announced, we were hoping to close on our acquisition of an interest in IHMML by September 30” stated Mr.
Williams. “Unfortunately, we have faced structuring and regulatory issues that are making the consummation of this transaction, for
both ourselves and our Canadian partners, challenging at this time. We will continue to monitor and explore this opportunity as we
believe in its potential, but we must also now turn to address other opportunities, including in the U.S. through the creation of our new
subsidiary.”
www.viridiancr.com
17
VIRIDIAN CANNABIS INDUSTRY REPORT
BIOTECHNOLOGY (CONT’D)
Nuvilex Now Has Access to $50
Million With New Banking
Agreement
Nuvilex (OTCQB:NVLX) has become
quite a busy biotechnology firm of late,
and with the announcement of what is
now a "two-pronged attack" on
pancreatic cancer, the company will
most certainly need more money to pull
off its plans. Fortunately, in late May,
Nuvilex gained access to just that, a
whole lot more money. In an original
funding agreement that was not
favorable at all to the company's
shareholders, Nuvilex had access to $27
million, but with a new at-the-market
banking agreement with Chardan
Capital, the company now has access up
to $50,000,000 which is $23 million
more than it had access to just one week
ago.
This new at-the-market banking
agreement with Chardan will give the
Maryland biotech access up to
$50,000,000, the opportunity to get out
of a "not-so-friendly" deal with another
firm, and it will help the company to
preserve shareholder value by allowing
it to control the deal.
This is an agreement that should put
Nuvilex in a very comfortable place and
let it get to work on furthering its
treatment for advanced pancreatic
cancer and diabetes using the
company's Cell-in-a-Box technology.
®
Nuvilex said the funds will be used for:
late-phase clinical trials in pancreatic
cancer with Clinical Network Services
(CNS) in Australia; preclinical studies
and clinical trials with Translational
Drug Development (TD2) to address
the symptoms of pancreatic cancer to
be conducted in the U.S.; and further
testing and research for diabetes in
Europe.
www.viridiancr.com
Cannabics Pharmaceuticals recruits two former senior Teva Executives
to its Advisory Board
Cannabics Pharmaceuticals, Inc. (OTCQB:CNBX), announced that the Company
has made two key appointments to the Company's Advisory Board with the recent
recruitment of Mr. Ika Abravanel as senior advisor in the field of operational and
strategic planning, and Dr. Sigalit Ariely-Portnoy, as senior advisor in the field of
regulation, validation and quality.
Both Mr. Abravanel and Dr. Ariely-Portnoy have substantial expertise, experience
and knowledge relevant to the Company's mission and anticipated needs.
Mr. Ika Abravanel joined Teva Pharmaceutical Industries Ltd as its Corporate Vice
President of Human Resources in 2007. During 2009, Mr. Abravanel was appointed
as Teva’s Chief Integration Officer, and as such led the post-merger integration
processes of Teva’s large acquisitions in recent years. In 2013 Mr. Abravanel was
appointed as Group Executive Vice President of Teva Corporate in Israel and
Global Community Alliances of Teva Pharmaceutical Industries Ltd. During that
time he also served as Co-Chairman of the steering committee of PGT (Procter &
Gamble - Teva joint venture in the field of OTC pharmaceuticals) on behalf of Teva.
Mr. Abravanel holds a B.A. and an M.A. in Political Science from Haifa University
and is a Graduate of the National Security College.
Dr. Sigalit Ariely-Portnoy has over 17 years’ experience in the pharmaceutical
industry. During this time, she has managed pharmaceutical and chemical plants at
Taro pharmaceutical industries Ltd as Operation Group Vice president and in Teva
Pharmaceutical industries Ltd as Kfar-Saba OSD plant manager. Dr. Ariely-Portnoy
managed Teva's largest plant worldwide (9 billion tablets per annum and more than
$2B revenues). During her career, she led more than 50 inspections by the US FDA,
EMEA, Israeli MOH, and others. Dr. Ariely-Portnoy spearheaded the construction
of a 200,000 sq ft pharmaceutical plant, several chemical plants and bio-warehouses,
as well as many significant plant expansions for manufacturers of semisolids, liquids
and oral solid dosage forms. Between the years 2003-2006, Dr. Ariely-Portnoy was
the president of the Israel chapter of the PDA (Parenteral Drug Association). In the
last 4 and a half years, Dr. Ariely-Portnoy manages Gsap, a company which consults
pharmaceutical, medical device and biotechnology companies in several major fields,
including innovative product development, regulation, establishing quality systems
and validation services. Dr. Ariely-Portnoy received her B.Sc., M.Sc., and D.Sc. from
the Technion Institute of Technology in Haifa, Israel, in the fields of Chemical
Engineering and Biomedical Engineering.
Dr. Zohar Koren, CEO of Cannabics Pharmaceuticals Inc, said, "Ika and Sigalit are
both uniquely accomplished and highly qualified pharmaceutical industry veterans,
who bring substantial skill sets and professional knowledge to our company at its
current stage of rapid growth, scale up of manufacturing technologies, high volume
market penetration and launch of clinical studies."
18
VIRIDIAN CANNABIS INDUSTRY REPORT
CONSULTING SERVICES
After gaining 375.9% in 2013, the Consulting Services sector emerged as the top performing sector in 2014, returning 665.3%
through Q3’2014. Sector performance was led by a 3100% gain for Novus Acquisition & Development (OTCPink:NDEV), after
announcing it will roll out their Medplan benefit network offering this October in states that have medical marijuana legislation
passed or on the ballot as of November 4, 2014. United Cannabis Company (OTCQB:CNAB) experienced the second highest
return through the third quarter, increasing 1025.0%, after announcing a property development agreement with INTIVA Real
Estate on an 80-acre parcel of land in Colorado, which has an estimated 3.2 million square feet of growing space. The complexity
and ever-changing nature of legal marijuana markets has made it a necessity for cannabis entrepreneurs to know everything from the
intricacies of each state’s marijuana laws to how to successfully run the day-to-day operations of a dispensary or cultivation facility.
This has created strong demand for consulting and advisory services in different aspects of the marijuana industry.
Advanced Cannabis Solutions
Announces Plans to Begin
Construction of Greenhouses
on Its Pueblo Property
Advanced Cannabis Solutions (ACS)
(OTCQB:CANN) announced that the
company has received final building
plan approval from the county of
Pueblo and will begin construction on
the first of five 9,000 square foot
greenhouses. These light deprivation
greenhouses will incorporate state of
the art technology. Construction costs
for the first greenhouse are budgeted at
$400,000, with foundation work and
site security upgrades expected to
commence immediately.
ACS's tenant, and co-owner of Steel
City Meds, Aaron Schierling expressed
his excitement with the project and
stated, "This working partnership with
ACS will allow our company to
dramatically increase our production
capability, while at the same time
controlling costs significantly. We look
forward to this first phase of
greenhouse construction, and also to
the completion of the full project in
the coming years." Robert Frichtel,
President and CEO of ACS, explains,
"Our Pueblo project is anticipated to
be a prototype for future ACS
cannabis cultivation properties in
multiple states."
www.viridiancr.com
American Cannabis Company Signs Licensing Manufacturing Agreement
to Service North America
American Cannabis Company Inc. (OTCQB:BIMI), announced the signing of a
licensing agreement with Maine-based Coast of Maine Organic Products and its strategy
to service both the US and Canadian markets with its SoHum(R) Living Soil - a branded
growing medium.
On September 22, American Cannabis Company ("ACC") and Coast of Maine Organic
Products ("COM") entered into a licensing agreement whereby COM will manufacture,
blend and distribute ACC's SoHum Living Soil(TM). Developed by the Company's
Chief Development Officer, Ellis Smith in conjunction with Felicia Newman, a chemical
engineer with 10+ years of organic gardening experience. SoHum(TM) is the Company's
proprietary formulation of PH balanced, fully- amended coco/perlite medium designed
to be time released with premium amendments. These amendments are made readily
available by beneficial microbes allowing for the perfect balance of macro and
micronutrients to handle plant needs for medical-grade cannabis production. The soil
produces a high quality medical grade product that passes stringent testing requirements
and reduces operator error. COM will begin manufacturing SoHum(TM) for
distribution and sale to the US market in an exclusive, five-year agreement with
performance goals. ACC will continue to sell SoHum(TM) in retail bags and bulk sales
to licensed medical marijuana facilities throughout the US while COM will sell
SoHum(TM) in retail bags and bulk sales to its current 500 retail clients. Both
companies have estimated sales of $300,000 the first full year of its cooperation.
American Cannabis Company also services Canadian-based Organigram, Inc. (TSXV:OGI) (OTC US:OGRMF) with its SoHum(TM) Living Soil. Organigram's use of
Sohum soil was to cultivate medicine for Canadian patients which passed testing by
Health Canada, known for its comprehensive and stringent testing requirements for
medical cannabis. Organigram has been a client of ACC for ten months and been
producing medical cannabis using SoHum(TM) for seven months. ACC has recognized
at total approximately $60,000 of revenue from Organigram through its second quarter
ended June 30, 2014. SoHum has accounted for $4,500 of revenues from Organigram
and is expected to increase. To service Organigram and the Canadian market's
increasing demand, ACC will have a second licensing partner, in Canada, to fully service
the collective North American market.
19
VIRIDIAN CANNABIS INDUSTRY REPORT
CONSULTING SERVICES (CONT’D)
CannaMed Corporation Names Industry Veteran
Paul Shively as Chief Financial Officer
CannaMed Corp. (OTCPink:MDMJ), an entity that provides
through a wholly-owned subsidiary both turnkey support services
for the legal cannabis industry and secured loans to select
industry participants seeking to acquire agricultural, industrial,
and retail real estate, is pleased to announce the addition of Mr.
Paul Shively as Chief Financial Officer.
Mr. Shively holds a Doctorate in Education and has considerable
expertise in business development, fiscal management and
corporate compliance. Throughout his more than 26 years of
practical experience in business development, Mr. Shively has
helped over 500 legal cannabis industry participants develop as
business entities. Mr. Shively's diverse business background
includes a private practice in accounting and corporate
compliance, and for the last ten years he has served on the board
of over a dozen non-profit and for profit entities. He is also a
recognized expert witness in the Los Angeles Superior Court
system and is often asked by leading Los Angeles medical
marijuana attorneys to assist in case preparation.
"I look forward to contributing to the execution of CannaMed's
business model and to providing guidance to the team and its
valued shareholders," stated Shively. "I am passionate about this
industry and look forward to participating in what I view is a
tremendous opportunity in legal cannabis."
Medbox Completes Second Capital Raise
(Cont.)…. convertible into common stock at a conversion
price of $11.75 per share, subject to certain adjustments under
Medbox's control. The financing will take place in two
tranches, with the initial $1.0 million closed on Friday,
September 19, 2014.
Medbox intends to use the net proceeds to accelerate the
development and growth of its current business pipeline in
key target markets within the U.S. In addition, the Company
intends to apply a portion of the net proceeds for general
corporate purposes, which may include working capital,
continued investment in geographic expansion, as well as
research and development.
Mr. Guy Marsala, Medbox CEO, commented, "I am excited
to announce the second financing we have closed in the last
three months, which we believe shows continued investor
interest and confidence in our company. This new capital will
be used to develop our robust pipeline, and to continue
expanding our business in other key target markets. Medbox
is building what we believe to be the best positioned and
managed company in the industry, and by properly
capitalizing the business we can truly reward our
shareholders."
CannLabs Announces Second Quarter 2014 Results
CannLabs, Inc. (OTCQB:CANL) a leader in cannabis testing, innovation and consultation, today announced its financial results for
the second quarter ended June 30, 2014.
"During this quarter, we successfully scaled operations to support the needs of growers, producers and retailers in response to the first
round of state government regulations in Colorado," said Mark Mirken, Chief Executive Officer of CannLabs. "As more regulations
take effect and more state markets open, CannLabs is poised to continue to provide a range of testing and consulting services aimed
to optimize our clients’ product development, and our commitment to public health and safety." Mirken added "CannLabs has a
library of proprietary testing data, accumulated over the last four years, which we will leverage into intellectual property for the
creation of unique product solutions to our ever expanding client base."
For the three and six month periods ended June 30, 2014, the Company reported revenues of $270,220 and $382,493, respectively.
The Company’s increased sales revenue during these periods was due to a rise in demand for services by clients complying with the
state of Colorado’s mandated testing requirements for certain recreational cannabis products which went into effect on May 1, 2014.
The net loss for the three and six months ended June 30, 2014 was $368,244 and $470,351, respectively. This was due to increase in
overhead and related expenses as the Company prepares for more comprehensive mandated testing of all recreational marijuana
products sold in Colorado. The Company also incurred expenses associated with its planned expansion into the Connecticut market.
In the coming months, CannLabs anticipates further growth as the industry prepares for the increased Colorado state regulatory
mandates expected on October 1, 2014. In addition, the Company has signed exclusive agreements with two major growers in the
state of Connecticut as part of its expansion into that market.
www.viridiancr.com
20
VIRIDIAN CANNABIS INDUSTRY REPORT
CONSULTING SERVICES (CONT’D)
Novus Enters Into Exclusive Agreement With
TKO Organics to Provide Medical Marijuana &
Fulfillment Services to MedPlan Patients
United Cannabis Corp. Signs Property Development
Agreement With INTIVA Real Estate for 80-Acre Parcel
in Pueblo County, Colorado
Novus
Acquisition
&
Development
Corp.
(OTCPink:NDEV), a provider of health insurance and
insurance-related services under the "MedPlan" brand
through its subsidiary Novus Medical Group, Inc.,
announced an agreement with TKO Reserve, LLC aka
Turnkey Organics LLC. "TKO" to act as a third-party
administrator of Novus' MedPlan, handling quality control,
order processing, and delivery coordination to patients in
Washington, Arizona, Oregon, California, Colorado,
Nevada and Michigan.
United Cannabis Corp (OTCQB:CNAB) announced that it has
entered into a farm lease with INTIVA Real Estate Colorado LLC on
an 80-acre property in Pueblo County, Colorado.
"Finding suppliers is a big challenge in this industry," said
Novus Acquisition & Development Corp. CEO Frank
Labrozzi. "The TKO Organics' products stand out from a
market that is flooded by entrepreneurs growing mediocre
strains using subpar techniques. Quality control and
standardization is the key, while this agreement provides the
company with an adequate supply of medical marijuana for
its growing number of MedPlan patients."
TKO Organics is a fully-operational indoor organic medical
cannabis growing and production facility in compliance with
the Washington State Medical Use of Marijuana Act
(RCW69.51A). By leveraging cutting-edge indoor growing
technology and proprietary extraction techniques, the
company will help standardize products for Novus' MMJ
patients with optimal cannabinoid ratios and other
beneficial characteristics. The extraction techniques and
new genetic varieties pioneered by the TKO will provide
Novus' patients with medicine that has been known to aid in
treating or relieving debilitating medical conditions. In a
testament to its growing line-up of high quality products,
TKO recently won second place at the High Times Seattle
Cannabis Cup for their Slips product that they produce via a
joint venture with Oakor.
Under the exclusive agreement, TKO Organics will work
as an outsourced administrative arm for Novus Medical
Group, handling quality control, delivery coordination,
distribution to dispensaries, and providing a user-friendly
ordering process to Novus MedPlan patients in
Washington, Arizona, Oregon, California, Colorado
Nevada and Michigan.
www.viridiancr.com
The companies will work jointly to develop the property optimizing it
for the growing, cultivation, and/or processing of marijuana, in
accordance with all applicable State of Colorado and county laws,
regulations, codes and ordinances, with the primary objective of
furthering the Company's research and development of medicinal
cannabinoid and related products.
Under the agreement, United Cannabis will serve as master tenant,
subleasing parcels to affiliates and other subtenants. United Cannabis
will also serve as property manager, overseeing the design of the 80-acre
campus, incorporating the Company's proprietary protocols and
methodologies. Construction of buildings and structures, such as basic
and state-of-the-art greenhouses, as well as enhancements to the
property, such as fencing and irrigation, will be added as mutually
agreed upon.
Earnest Blackmon, President and Chairman of United Cannabis,
commented on the agreement, "Development of the Pueblo property is
an integral part of the Company's growth plan. The geography of the
site provides optimal growing conditions, and the layout is ideally suited
for our needs. The partnership with INTIVA offers us the flexibility to
develop the site to our specifications in order to best work with our
licensed affiliates and exclusive contractors."
Mr. Blackmon went on to say, "In addition, as the master lease holder,
United Cannabis will maintain control of the property, ensuring that we
can preserve the integrity of the land as we look to expand our own
efforts in the development of on-site genetics, cultivation, processing,
and production of our trademark products."
Joshua Greenberg, Chief Executive Officer of INTIVA Real Estate
Colorado, stated, "United Cannabis is the perfect collaborator for this
venture. They have extensive knowledge within every aspect of the
medical cannabis industry. That expertise, as well as their affiliate
relationships, will enable us to optimize the productivity of this parcel.
With an estimated 3.2 million square feet of growing space, the
property has the potential to be one of the largest grow facilities in the
state of Colorado."
21
VIRIDIAN CANNABIS INDUSTRY REPORT
CONSUMPTION DEVICES
The Consumption Devices sector gained 53.9% YTD, after being the top performing sector during 2013, rising 661.9%. mCig
(OTCQB: MCIG) was the top performer, gaining 244.4%, after announcing its formation of a new wholly owned subsidiary, mCig
CBD Technologies, LLC. Vaporin (OTCQB:VAPOD) was the third worst performing company within the sector, declining by
58.5%. However, the Company announced a 1:50 reverse stock split to increase the attractiveness of Vaporin stock in preparation
of its CEO beginning a non-deal road show. Recent popularity of vaporizers, as well as it being touted as a healthier alternative in
the consumption of cannabis has been a key driver of the sector’s high growth. Not only has vaporizing becoming increasingly
popular to the average marijuana consumer, but in some states such as Minnesota, vaporizing is making its way into medical
marijuana laws as the preferred way for consuming the medicinal drug.
Forms Colorado Subsidiary mCig CBD Technologies, LLC
mCig, Inc. (OTCQB:MCIG) announced that the Company has formed a
100% owned subsidiary: mCig CBD Technologies, LLC. in the state of
Colorado for the purpose of designing and manufacturing a new line of
products that will leverage the VitaCig technology for delivery of Cannabis
plant derivatives. The Cannabis plant is a unique source of over 70
cannabinoid molecules of which only THC is known to cause psychoactive
effects. Cannabinoids such as Cannabidiol (CBD) have shown to have positive
medicinal effects on various hard-to-treat diseases such as epilepsy.
This new line of products will be named: "mCig+" and will include prepackaged devices that look similar to the company's VitaCig(R) line of
products. These products will only be sold to licensed distributors and
dispensaries in jurisdictions around the world where the consumption of
Cannabis and Cannabidiol is permitted.
Rapid Fire Marketing Announces Pocket Puffer Ready for
Production
Rapid Fire Marketing (OTCPink:RFMK), announced that its new dry herbal
vaporizer, the PocketPuffer® is now ready to go to production. All changes as a
result of testing both in China and in the U.S. have been incorporated into the
unit. The first production round will be limited, but will include units for five
individuals who will be selected in the drawing through Pocket-Puffer.com at the
end of next week, 25 July, 2014. Individuals who will participate in the testing
will be notified the following week.
Once these units have been received, they will be shipped out to the winners of
the drawing. There will be a two week period in which feedback will be
compiled and assessed to determine if any changes to the design will be required
for the first large production run. At this point an exact date for sales of the
Pocket Puffer® cannot be forecasted, but as soon as the units arrive at the
fulfillment facility in the U.S. the units will be stocked and ready for shipment.
www.viridiancr.com
ML Capital Group, Inc. Announces
New Orders for Over 1,000
SuperStar Vapor Pens
ML Capital Group, Inc. (OTCQB:MLCG),
announce that is has recently received new
orders for over 1,000 SuperStar Vapor Pens.
The dramatic increase in sales could be
attributed to its recent appearance at a Las
Vegas trade show, added website advertising,
and more representatives. The Company
added three more colors to its line of pens
that now includes chrome, purple, and blue.
It also extended its line of flavors for its
SuperStar Hookah Pens to include tropical,
wild watermelon, pineapple paradise, kiwi
kisses, Caribbean coconut, and pomegranate
passion.
The SuperStar Vapor Pen sold on its website
and through distributors has three specialized
tips for medical needs or pleasure. The pen
has a medicine (tobacco) tip, wax atomizer,
and also an E-liquid tip. The battery can be
recharged from an outlet or computer power
source.
Lisa Nelson, ML Capital Group's CEO
stated, "We are encouraged and excited about
the level of sales we are currently
experiencing. The added colors and flavors to
our products should only boost sales further.
We remain diligent in our efforts, and plan to
expand our sales channels further to allow for
even stronger sales growth."
22
VIRIDIAN CANNABIS INDUSTRY REPORT
CONSUMPTION DEVICES (CONT’D)
Vape Holdings Closes In Excess of $100k in HIVE Sales
in April, Has $250k in Orders Awaiting Product Arrival
Vape Holdings, Inc. (OTCQB:VAPE) (the "Company"), a holding
company focused on providing healthy and sustainable vaporization
products, announced that it had over $100,000 in sales of its
proprietary HIVE Ceramic line since it began processing orders in
early April. The Company also has back orders for over $250,000 in
future sales as they await arrival of the ceramics from the Company's
manufacturing facility.
"I am very pleased by the early acceptance of the premium HIVE
Ceramic line, especially because the majority of the purchases were
made by the most informed buyers in the marketplace, those who
know what is being sold nationwide," stated Kyle Tracey, CEO, Vape
Holdings, Inc. "It's evident from the overwhelming response at the
Cannabis Cup this past weekend that the HIVE Ceramic line, which
has now expanded to 14 designs, is becoming a popular choice for
consumers."
"As our inventory arrives and we are able to fulfill the requests
waiting for delivery we will do our best to report these successes to
the market," added Tracey. "Fifty-thousand new pieces of HIVE
Ceramics are expected to arrive at our offices ready to ship by the
end of May barring any unexpected delay and will be used to fulfill
pending and future orders."
Vaporin Enters Cannabis Industry Through Distribution
Partnership With Terra Tech
(Cont.)…Vaporin and Terra Tech have entered into an exclusive
distribution agreement whereby Terra Tech will purchase the
Company's proprietary vaporizer products for resale throughout
their cannabis dispensary network in California, Colorado,
Washington and Oregon. According to the California State Board of
Equalization, there are an estimated 500 marijuana
clubs/dispensaries in California that generate an estimated $2 billion
in revenue annually. Medical Marijuana has been legalized in 22
states.
As part of the agreement, Terra Tech has begun to secure purchase
commitments from their dispensary network. Additionally, Vaporin
and Terra Tech will collaborate on the further development of
cannabis and cannabis-related product vending machines in
compliance with the Laws of the State of California. In anticipation
of entering the cannabis industry, Vaporin has already developed
vaporizing pen products for consuming cannabis in oil, wax and dry
herb form with each pen varying in look, feel, size, quality and price.
The Company anticipates generating revenue from this distribution
agreement during the third quarter of 2014.
www.viridiancr.com
Vapor Group, Inc. Announces Grand Opening
of "Total Vapor" Retail Store on Biscayne Blvd.,
North Miami Beach
Vapor Group, Inc. (OTCQB:VPOR), (the "Company"),
announced it has opened its first retail store at 14490
Biscayne Blvd., North Miami Beach, FL 33181, under
the "Total Vapor" brand name. The new store, which will
serve as the Company's "flagship" store, is located on a
high traffic main commercial highway in an upscale
suburban of Miami. It is the first of five (5) stores
planned to open by early August under the "Total Vapor"
brand. This opening is part of the rollout of its
previously announced expanded "brick-and-mortar" and
online retail strategy for the Company's several brands.
Store hours will be Mon. - Sat. 10am-7pm, and Sun. 116pm.
Vapor Group's President and CEO, Dror Svorai said,
"We are delighted to have opened our first store to sell
our full line of products. Moreover, in the coming weeks,
we will open three more stores in the Miami-Ft.
Lauderdale area and one around Orlando for a total of
five new stores."
He added, "As I have said before, by year-end we plan to
have opened ten retail locations in metropolitan Florida.
And based on the stores' performance by year-end, we
may decide to further invest in retail expansion in or out
of our home State, either by direct ownership, or the
offering of a 'business opportunity' or 'franchise' for our
products. We are confident that this retail expansion will
increase our 2014 revenues and profits."
VaporBrands International, Inc. to Market
Hemp Oil in Electronic Cigarettes
VaporBrands International, Inc. (OTCPink: VAPR) and
HEMP, Inc. announced today that VaporBrands will
market Hemp Oil produced by Marijuana, Inc. a wholly
owned subsidiary of Hemp, Inc., in electronic cigarettes
supplied by VaporBrands for medicinal purposes and
recreational use, where legal. VaporBrands and
Marijuana, Inc. have agreed to research, develop and
distribute vaporizer products specifically for the use of
Hemp Oil in natural medicine. Marijuana, Inc. has also
agreed to assist VaporBrands in expanding the retail
distribution of its current and future electronic nicotine
based cigarette products.
23
VIRIDIAN CANNABIS INDUSTRY REPORT
CULTIVATION & RETAIL
Following a negative return of 45.8% in 2013, the cultivation and retail sector only declined 2.3% through the third quarter in 2014.
Terra Tech (OTCQB:TRTC) was the top performer, gaining 157.1%, as the company reported sales for the second quarter that rose
458% from the quarter ended June 30, 2013. Alternative Fuels America (OTCQB:AFAI) gained 25.0% for 1H’2014, announcing
that its majority owned subsidiary Marijuana Holdings Americas opened its first Kaya Shack marijuana dispensary, making it one of
the first US publicly traded companies to own a majority interest in a dispensary conducting legal sales of marijuana in the United
States. Despite lingering concerns of breaking federal law keeping the majority of publicly traded cannabis companies away from the
direct production or sale of cannabis in the U.S., there has been a growing number of companies with a high enough risk appetite to
position themselves as direct handlers. As the cannabis market matures and federal laws loosen, this sector will begin to see increased
competition, which will help to spur growth. If these first movers are able to successfully refine their operations, they will be
strategically positioned to generate high returns and capture significant market share in the industry.
Affinor Growers Closes Acquisition of Vancouver Rooftop Growing Facility and Intellectual Property
Affinor Growers, Inc. (OTCQB:RSSFF) has closed the deal of previously LOI announced on July 11, 2014 and acquire all the assets
of 0993341 "BC" Ltd related to the operation of the Vancouver rooftop growing facility, located at 523/535 Richards Street, in
Vancouver BC. The IP from this acquisition is very important to Affinor and will be useful to develop pharmaceutical and marijuana
production aspects in United States and Canada. This acquisition will also allow Affinor to retrofit the facility and start growing baby
greens using this new vertical farming technology. Affinor Growers will now be able to fast track operations and put fresh food and
pesticide free on the shelf in Vancouver and demonstrate viability to the market adding yet another potentially, high-margin revenue
stream.
This is also a great opportunity for the City of Vancouver to continue their vision of growing fresh urban food. The Vancouver Food
Strategy has a plan to create a sustainable food system for the city, which builds on years of food systems considering all aspects from
seed to table to compost heap. Affinor is excited to participate in Vancouver's goal to become the "greenest" city by 2020.
Executive Chairman Nick Brusatore, comments: "I am very pleased with this acquisition as it is a very important move for Affinor to
have vertical farming equipment as we enter into the pharmaceutical, neutraceutical and marijuana market in Washington."
AFAI's Marijuana Holdings Americas Announces Grand Opening of First "Kaya Shack" ™ Marijuana Store
Alternative Fuels Americas, Inc. (OTCQB:AFAI) announced today that its majority owned subsidiary Marijuana Holdings Americas,
Inc. will open the first Kaya Shack™ on Thursday, July 3, 2014 at 10:00 a.m. and commence sale of marijuana to licensed medical
marijuana cardholders in Portland, Oregon. The first Kaya Shack™ marijuana dispensary is the beginning of a planned rollout of a
national chain. The opening places AFAI as the first US publicly traded company to own a majority interest in a marijuana
dispensary conducting legal sales of marijuana in the United States.
"We are very excited to be opening the first Kaya Shack," states CEO Craig Frank. "We believe our brand is unique and inviting, and
our staff is well trained to provide a friendly and knowledgeable consumer experience. Our wide selection, sharp appearance,
friendly service and highest quality standards will make our MMFs the first choice for medical marijuana patients in Portland,
Oregon, and will lay the foundation for a nationally recognized brand."
This grand opening marks the further implementation of the Company's business plan that calls for activity in the legal marijuana
sector in select states and coincides with great interest in marijuana companies. The Company has targeted adding an additional 4-6
Kaya Shacks in Oregon and has plans to place Kaya Shacks in other states once pending legislation passes (including its home state of
Florida where a referendum on medical marijuana will be on the ballot in November).
www.viridiancr.com
24
VIRIDIAN CANNABIS INDUSTRY REPORT
CULTIVATION & RETAIL (CONT’D)
Primco Management Signs Definitive Agreement to
Purchase Top Rated Seattle Medical Cannabis
Delivery Service
Primco Management Inc. (PMCM), a medical marijuana, real
estate management and multi-media company today
announced that the Company has entered into a definitive
agreement to acquire Seattle Green Care, a fully licensed
medical marijuana delivery service with over 200 active
patients. Primco will move the Seattle Green Care operations
to its Suzy Q's location, immediately granting access to Suzy's
more than 1500 patients.
"Today Primco announces step two in our entry to be the
major player in the Washington State medical cannabis
market. By acquiring Seattle Green Care, we put ourselves in
position to gain substantial market care by offering the Seattle
market access to the premium medicine offer through the
Suzy Q brand. We hope to announce in the very near future
our plans for a state of the art cultivation center and the
further acquisitions of medical clinics throughout the state.
We look forward to a long term partnership with Washington
by providing the highest quality medical cannabis to its
250,000 patients."
Next Generation Management Corp. Opens
Medical Marijuana Dispensary in Hollywood
Next Generation Management Corp. (NGMC) announced
today the opening of its flagship medical marijuana dispensary
in Hollywood, California.
"We are pleased to achieve this important milestone in our
Company's growth," said Darryl Reed, CEO of NGMC. "As
more states relax laws regarding the sale of medical marijuana
our turn key DMS (Dispensary Management Service) will be
an important resource for new dispensary owners."
NGMC provides dispensary management services to the
medical marijuana industry including site location selection,
dispensary build out, staffing, staff and manager training,
security services, and financial advice. Additionally, NGMC
offers as part of its DMS package a comprehensive suite of
industry specific software that offers seed to sale controls and
regulatory agency compliance featuring the BiotrackTHC
application suite.
"Our goal is to achieve more than 200 patients a day within the
next 60 days by advertising on popular medical marijuana sites
and by providing the highest quality products," Mr. Reed said.
"We are actively searching for our next location in Southern
California," NGMC's CEO concluded.
Med-Cannabis Pharma, Inc. Announces Planned Expansion Into New Mexico, Grand Opening of Two Stores
in the State of Washington
Med-Cannabis Pharma, Inc. (OTCQB: MCPI), a Nevada company specializing in medical cannabis sales, announces that it has
obtained a letter of intent to lease a storefront in the Highland neighborhood of Albuquerque, New Mexico, a statutory prerequisite
for applying for a permit to open a dispensary under the state's Medical Cannabis Program (MCP). In addition, the Company has
scheduled grand openings for its Port Townsend and Hood Canal Collective dispensaries on Monday, August 16th, and Wednesday,
August 18th, respectively. The dispensaries will be operated under the Company's subsidiary, Cannabis Hemporium.
The Albuquerque location will become the fourth medical cannabis dispensary in that city, and its opening signals the Company's
intent to serve the New Mexico market.
In the USA, 23 States and Washington, D.C. have enacted laws that legalize medical marijuana. The Company recognizes that its
product is believed to improve the quality of life of individuals suffering from certain medical conditions. It also recognizes that the
industry in the United States is still in its early days, undergoing constant scrutiny from a variety of regulators and tax bodies, and that
many legislators are ambivalent on the topic, owing to pressure from constituents. As a public company, Med-Cannabis Pharma
intends to maintain its high degree of transparency to those who rightfully monitor and inspect its operations and performance,
operating with a degree of control and compliance more similar to the gaming industry than to a chain drugstore. Management
believes that this sharp focus will preserve its assets, foster growth, and reduce collisions with those whose duty is to regulate medical
marijuana.
www.viridiancr.com
25
VIRIDIAN CANNABIS INDUSTRY REPORT
CULTIVATION & RETAIL (CONT’D)
Terra Tech Begins Supercritical CO2
Cannabinoid Extraction, Testing and Formulation
Force Fuels, Inc. Subsidiary Cafe Serendipity Inc., Signs Its
First Franchise Agreement for a Branded Recreational
Marijuana Store in Colorado.
(Cont.)…. The facility was built in response to what the
company views as an increase in demand for high grade
CBD as well as other cannabis extracts. At the core of the
facility is a custom, 20 liter, 5,000 PSI supercritical CO2
extractor from Eden Labs. This piece of equipment utilizes
CO2 as a solvent, which is superior because it is nonflammable and non-toxic, mitigating negative environmental
impacts as well as several safety concerns that have been
associated with butane extraction.
Cafe Serendipity Inc., a wholly owned subsidiary Force Fuels Inc.
(OTCPink: FOFU) announced that it has signed its first franchise
agreement for a recreational marijuana cafe store branded Cafe
Serendipity in Colorado. Under the agreement Cafe Serendipity is to
receive an initial franchise fee of $25,000, product sales, as well as
significant monthly royalties on top line revenues generated at the store.
Franchisee's are expected to have a 65% gross profit margin business as
well, in our business model.
On September 9, 2014 the company's Board of Directors
unanimously voted to allow the company to engage in the
production, extraction and retail sale of medical cannabis if
done so in full accordance with the state's medical marijuana
laws in which they operate. The decision was made in
advance of Nevada's November 5th medical marijuana
permit announcements. This allows the company's executive
team to transparently operate in the medical cannabis
market.
This marks the first initial milestone whereby Cafe Serendipity plans to
roll out fully branded stores coast to coast through a franchise network.
The company also has plans to solicit the estimated 6000 medical
marijuana legal dispensaries already in the USA to convert to branded
dealership programs. Management believes that the company has
developed an excellent value proposition that will help consumers with
consistency of product lines, ease of purchase transactions while
providing this highly fragmented industry with time honored retail
strategies.
"The company and its Board of Directors have spent
countless hours weighing the risks and rewards of being
directly involved in the production of medical cannabis. We
have seen many companies benefiting from the industry
through consulting agreements, leases, and licensing
arrangements; however at the end of the day they are still
profiting from the production of the plant. As a group we
have made the collective decision to be transparent in our
involvement in an effort to do what's best for our
shareholders and to elevate the industry, doing our part in
pushing for legalization. As the industry develops so does the
need for best practices, protocols and processes. Patients
deserve access to quality products, produced with the highest
standards by the best personnel and equipment available.
Our intention is to provide just that," explains Derek
Peterson, CEO of Terra Tech. "We will begin by operating
our extraction lab, producing oils and other forms of
cannabis extracts for patients throughout the California
market. In addition, if we are successful in obtaining a
permit to operate a MME within Nevada, our team will
manage these facilities to the same high standards."
The company will be testing extraction methods and
formulations over the next several weeks. Terra Tech's
counsel is making certain they comply with all local and state
regulations in every market before offering products to
patients. The company will provide additional updates as the
business develops and as regulatory compliance is met.
www.viridiancr.com
ENERTOPIA Signs Exclusive Management, Marketing &
Distribution Agreements
Enertopia Corp., (ENRT) an aspiring Licensed Producer of medical
marijuana under Canada's Marihuana for Medical Purposes
Regulations ("MMPR") program, recently announced progress across
two of its projects and new efforts to raise awareness among both
physicians and consumers within an industry that Health Canada
expects to reach C$1.3 billion by 2024.
On September 17, 2014, the company announced that its Burlington
joint venture with Lexaria Corp. (OTC:LXRP) submitted an
application to become a Licensed Producer and is in correspondence
with Health Canada. The JV also requested a ready-to-build letter from
Health Canada once the application has been accepted in order to
expedite the process and become a licensed producer more quickly.
The Burlington Joint Venture has applied to produce up to 10,000
kilograms of medical marijuana per year, with Enertopia holding a 51%
interest and Lexaria holding a 49% interest. Through active
involvement in the community, the company has received very strong
support, both by the citizens and by the media. The local police have
also been instrumental in the process by providing insights and
proactive measures that can be taken ahead of time to ensure
compliance.
On September 18, 2014, the company announced that it provided
notice to its World of Marihuana project alleging default under the
terms of the agreement. The partner responded by providing notice in
26
response disputing their default and Enertopia will provide further
VIRIDIAN CANNABIS INDUSTRY REPORT
INFUSED PRODUCTS & EXTRACTS
The Infused Products and Extracts sector has been the third best performing sector in 2014, gaining 135.3% in the first three
quarters, after declining 10.7% in 2013. The top performer in the group was Cannabis Sativa, (OTCQB:CBDS) which gained
969.3% through the Q3’2014 as the Company’s stock jumped in early July after it announced the completion of it acquisition of
Kush, a development stage company engaged in the research, development and licensing of a proprietary cannabis lozenge delivery
methodology and a proprietary cannabis trauma cream formula. Legalized recreational marijuana sales in Colorado and Washington
has driven the market growth of these products as many dispensaries, particularly in tourist areas, report that edibles and extracts are
a significant portion of their sales. With cannabis purchases by out-of-state visitors accounting for an estimated 44% of all retail sales
in the Denver area and about 90% in mountain resorts, infused products and extracts are experiencing soaring demand. As more
state begin to legalize the use and sale of marijuana, transparency, technology and education will increase demand by consumer,
helping to stimulate and sustain growth in the sector.
Cannabis Sativa, Inc. Completes the Acquisition of Kush and
Names Former New Mexico Governor Gary Johnson as
President and CEO, and Steve Kubby as Chairman
Cannavest Corp. Announces Exclusive
Production Contracts With European
Industrial Hemp Farmers
Cannabis Sativa, Inc. (OTCQB:CBDS) announced on June 30, 2014, it
consummated the acquisition of Kush, a Nevada corporation ("Kush"), and
its consolidated subsidiary, following which Kush became a wholly owned
subsidiary of the Company (the "Merger").
CannaVest Corp. (OTCQB:CANV), a leading
manufacturer and distributor of hemp and
Cannabidiol (CBD) based products, has
received the highest Cannabidiol (CBD)
concentrate award at the Seattle High Times
Cannabis Cup, on September 7, in Seattle,
Washington. It is the fifth top honors win for
the Company in this category, and marks an
industry record number of wins.
In connection with the Merger, the Company named Gary Johnson, the
former two-term Governor of New Mexico and the Libertarian party's 2012
nominee for President, as its President and CEO, and Steve Kubby, the
founder of Kush, the 1998 Libertarian Party of California candidate for
Governor of California and an author on drug policy reform, as its
Chairman. Messrs. Johnson and Kubby were also appointed as directors of
the Company and each of them entered into employment agreements with
the Company.
Kush is a development stage company engaged in the research, development
and licensing of specialized natural cannabis products, including cannabis
formulas, edibles, topicals, strains, recipes and delivery systems. Kush plans
to develop, produce and market its products via joint ventures with
companies licensed under, and in full compliance with, state regulations
applicable to cannabis businesses. Kush is the licensee under license
agreements with Steven Kubby, its founder, for a medicinal cannabis strain
called NZT; a proprietary cannabis lozenge delivery methodology and a
proprietary cannabis trauma cream formula. The license agreements require
the payment of license fees by Kush. Kush through its 90% owned subsidiary
filed patent applications in March and April 2010 with regard to a strain of
cannabis plant named CTS-A, cannabis based compositions and methods of
treating hypertension, and a lozenge delivery system. Kush is also developing
a third proprietary strain of cannabis plant named CT22.
www.viridiancr.com
In addition to announcing this record win for
high-end Cannabidiol (CBD) compounds, the
Company is announcing that it has secured the
exclusive production supply of approximately
2,500 acres of European industrial hemp
farmland, through the 2018 harvest, with an
option to extend the acreage or length of the
commitment.
Mr. Mona continued by stating that in addition,
"the European farming contracts ensure that we
have the capacity to continue to be the industry's
lead supplier of high end hemp and
Cannabidiol (CBD) based products that will
meet growing consumer demand."
27
VIRIDIAN CANNABIS INDUSTRY REPORT
PRODUCTS & EXTRACTS (CONT’D)
Alternaturals taps Kush Creams to Produce and Distribute 5
Hour High, its Newest Product
Alternaturals, Inc. (OTCPink:ANAS) (the "Company"), announced that it
has chosen Kush Creams, a Washington based, medical marijuana grower
and distributor with award winning strains and products, to manufacture and
distribute its long awaited medical marijuana product, 5 Hour High©.
5 Hour High© is a shot style drink, similar to the energy drinks that line the
shelves of convenience stores all across America, with one big difference.
Instead of giving you a burst of energy, this shot of tasty juice-like drink gives
you a lasting dose of THC (the active ingredient in marijuana) that has been
specially formulated to improve mood and maintain energy levels. The
company is banking on non-smoking methods of ingesting THC to become
more and more popular now that many states have decriminalized the
multi-billion dollar marijuana industry.
By choosing one of the most successful and fastest growing medical and
recreational marijuana growers and distributors in the US, Alternaturals
expects 5 Hour High© to be sold in most dispensaries in those states where
its consumption is legal. Emmanuel Gyamfi, Alternaturals' CEO explained,
"We are extremely excited to be working with Kush Creams on this project
because in an emerging market, such as this, you really have to go with the
best if you want to have a long term stake in the industry. We haven't found
another company like them, and we are confident that we will both be very
successful with this product line."
Green Cures & Botanical Distribution Inc. Announces the
Activation of its New Website Allcbd.com
Green Cures & Botanical Distribution Inc. (OTCPink: GRCU) announced
that Allcbd.com, the newest member of Green Cures' portfolio of websites,
is now receiving and processing orders from customers across the United
States. Additionally, Green Cures is pleased to announce that
Allbotanical.com is now shipping orders internationally. Subsequently, the
company announced the immediate availability of South Africanmanufactured, hemp-infused products labeled Hemporium, through
Allbotanical.com.
"Throughout the upcoming weeks and months, we will be gradually
introducing additional CBD-derived products through our second
ecommerce website, www.allcbd.com," stated Green Cures CEO Robert
Calkin. "With the assistance of our CBD suppliers and manufacturers, we
continue to work on the manufacturing and packaging of numerous CBDderived products." Green Cures has previously announced its intention to
provide additional CBD products, following both state and federal
lawmaking with respect to statutes and regulations involved in the medicinal
cannabis industry. Green Cures does not and will not carry any type of
products that are considered controlled substances at the federal level.
www.viridiancr.com
MediJane Holdings Completes
Formulation of New Canna Liniment
Product Line
MediJane Holdings Inc. (OTCQB: MJMD) is
pleased to announce that it has completed the
final formulation of its new Canna Liniment
product line of topical analgesics.
Canna Liniment is formulated for chronic pain
and muscle soreness and will give pain
sufferers another unique cannabinoid delivery
system option. The new Canna Liniment
formula is part of MediJane's continued
penetration into the $45 billion pain
management sector.
The Canna Liniment product is a Chinesestyle liniment made with cannabis oil,
wintergreen essential oil, and menthol all
adding to its anti-inflammatory and analgesic
properties. MediJane captures cannabis
terpenes, which increase absorption and offer
their own unique healing properties.
"Being involved in sports and fitness for
decades, I've used ordinary everyday liniments
to help reduce pain and inflammation for
many years. The American public is largely
familiar with liniment products like Tiger
Balm, Ben Gay, and Icy Hot. They're great
products for what they do. Now we are able to
provide relief to pain sufferers in a similar
format but with the unique benefits of medical
cannabis through our new and innovative
formulation and Canna Liniment delivery
system," stated Lewis "Spike" Humer,
Chairman of MediJane. "The successful
completion of the Canna Liniment formula
allows us many more product development
options, like roll-ons and a variety of balms,
just to name a few. This once again represents
another aspect of our constant evolution as a
company and brand. We believe Canna
Liniment will potentially provide numerous
new revenue streams for the ultimate benefit
of our shareholders."
28
VIRIDIAN CANNABIS INDUSTRY REPORT
PRODUCTS & EXTRACTS (CONT’D)
Latteno Set to Reap Benefits of Lucrative Colorado MMJ Grow Farm Business Model
Latteno Food Corp. (OTCPink:LATF) (LATF) announced that its first Colorado MMJ Grow Farm Partnership Project is set to
begin cultivation within the next two weeks. The unique Grow Farm Project is part of Latteno's aggressive MMJ Initiative and is
designed to maximize productivity and profitability by partnering with experienced Licensed Growers.
Latteno's Colorado MMJ Grow Farm Partnership Project is based on the business model whereby, the Company buys available
farm land in Colorado's IA zone and partners with experienced Licensed Grower. This arrangement will provide the Company
with the required experience and licensing to ensure high productivity and reduce 'trial and error' waste.
The process has been streamlined and has been developed to adapt easily to multiple Projects: Close escrow on a farm/warehouse
in Denver IA zone, the zone in Denver with the capability of upgrading electrical power from the standard 200 megawatts to the
required 800; Sign contract with Licensed Grower; Apply for electricity upgrade with local utility; required transformer is order by
Utility; 4-5 weeks after the application has been submitted the Utility provides us with the transformer.
The Company announced that it already has already acquired the property for the Pilot Project; formally applied (3 weeks ago) to
the local Utility for power upgrade; completed agreements with the Licensed Growers; and reasonably expect to have power
generator upgraded within the next week or two and cultivation commenced immediately thereafter. In fact, the Growers have
already acquired the seedling MMJ plants.
The Company believes that its Colorado MMJ Grow Farm Partnership Project is an integral part of its overall MMJ Strategy and
the new ventures and initiatives have been developed to provide complementary, sustainable revenue streams.
Global Hemp Group Announces Formation of Global Hemp BioScience Inc.
Global Hemp Group, Inc. (OTCQB:GBHPF) announced the formation of subsidiary company Global Hemp BioScience, Inc.
("GH BioScience") is a research and development company tasked with developing profitable, hemp-based products, which
include, but are not limited to: nutraceuticals, functional foods, cosmetics, pharmaceuticals, veterinary, and nutritional
supplements. GH BioScience has already begun work on developing an intellectual property portfolio and anticipates filing of
provisional patents by the end of the 2nd quarter of 2015.
The formation of Global Hemp BioScience is in keeping with GHG's holding company strategy. GH BioScience is a wholly
owned Subsidiary of GHG that will operate autonomously and synergistically with other GHG portfolio companies.
Global Hemp BioScience is managed by Dr. Reid Jilek, as CEO, and Robert Richardson, as EVP and Chief R&D Officer. GH
BioScience research and development laboratories will be based in the greater Los Angeles area. GH BioScience has already
developed products and intends to either license out, joint venture, or sell its products to the healthcare, food or cosmetics
industries. GH BioScience anticipates being profitable within 18 months of the completion of its laboratory.
GH BioScience's flagship product is our proprietary Hemp-based ingredient, which balances blood sugar levels, which will make
a significant improvement in the health of individuals suffering from diabetic health challenges.
CEO Dr. Reid Jilek, says "Within my 35 years in the development of healthcare products, hemp-based products are the most
unique in being able to be utilized in treating the widest varieties of consumer healthcare needs". Robert Richardson, Chief R&D
Officer, says, "People are realizing that the foods they eat affect their health. GH BioScience will be aggressively introducing
several of our whole food ingredients to major food manufacturing companies.
www.viridiancr.com
29
VIRIDIAN CANNABIS INDUSTRY REPORT
INVESTMENTS/M&A
The Investments/M&A sector rose by 35.4% through the first 3 quarters of 2014, compared to an 11% gain for 2013. The top
performer in the group was Mentor Capital (OTCPink:GIGA) which gained 154.5% as the Company announced multiple
investments within the Cannabis Industry, including providing seed financing to Nevada Cannabis Ventures. The second best
performer was FutureWorld Corporation (EX:FWDG), which returned 100.0% as the Company launched affordable
PersonalAnalytics Cannabis THC & CBD test kits, the world's first ever affordable home testing kits for potency of cannabis
cannabinoids. Medical Marijuana (OTCPink:MJNA) gained 50.0% through the Q3’2014 as the one of its portfolio companies,
KannaLife Sciences, was awarded its second license agreement by the National Institutes of Health (NIH) to develop a drug to treat a
concussion syndrome called CTE using derivatives from medical marijuana. The investment/M&A sector of the Cannabis market
will continue to ramp as the market undergoes a natural consolidation process, and new investors come into the market. We believe
that consolidation will occur in both public and private companies, as public companies seek to bolster growth through acquisition
and private companies look to “go public” through an acquisition by a public company.
Surna Closes Hydro Innovations Acquisition; Company More Than Doubles Its HQ Space
Surna Inc. (OTCQB: SRNA), a company that develops, acquires, produces and sells equipment for the legal marijuana industry
with a focus on disruptive technology, today announced it has successfully closed its previously announced acquisition of Hydro
Innovations ("Hydro").
Boulder, Colorado-based Hydro is a leading designer, manufacturer and distributor of proprietary, state-of-the-art indoor climate
control systems such as chillers, lights, reflectors and irrigation systems designed for cannabis and other indoor agriculture markets
(www.hydroinnovations.com). Accordingly, Hydro's revenue and other financials will be integrated into Surna's quarterly financial
results beginning with the current quarter ending September 30, 2014. Details of the transaction are contained in the Company's
report filed on Form 8-K with the SEC.
In conjunction with its anticipated closing of the Hydro acquisition, Surna expanded its Boulder office headquarters and
manufacturing space from about 7,000 to 18,000 square feet by leasing space directly adjacent. In addition to expanding its office
space, the increase enables Surna to substantially increase its R&D and manufacturing capacity as well as to build out a showroom to
meet accelerating demand for its leading-edge cannabis and other indoor agriculture growing equipment.
Surna Chairman and CEO, Tom Bollich, commented, "Closing the Hydro acquisition was an important milestone for the
Company. Founded in 2007, it has a solid and rapidly growing installed customer base. It has an exceptional intellectual property
portfolio upon which we intend to capitalize as we apply for additional patents in the weeks and months ahead. We plan to
commercialize new, leading edge cannabis indoor agriculture equipment products -- some of which are in advanced development
and testing phase and will be launched in 2014, while we have a growing pipeline of sophisticated new products in the pipeline for
2015.
"We had maxed out our current Boulder headquarters," Mr. Bollich added. "Securing a long term lease on the additional space
provides a big boost to operating and manufacturing capacity and widens our options for consolidating any future acquisitions."
www.viridiancr.com
30
VIRIDIAN CANNABIS INDUSTRY REPORT
INVESTMENTS/M&A (CONT’D)
THC & CBD Potency Test Kits Sold by
FutureWorld (FWDG) Subsidiary CB Scientific
Initial Production Run Close To Selling Out
FutureWorld Corp. (OTCPink:FWDG), a leading provider
of advanced technologies and solutions to the global cannabis
industry, announces major traction of its recently launched
affordable PersonalAnalytics Cannabis THC & CBD test kits.
PersonalAnalytics test kits are the world's first ever affordable
home testing kits for potency of cannabis cannabinoids (THC
& CBD). The tests are sold through CB Scientific, a wholly
owned subsidiary of FutureWorld Corp.
"PersonalAnalytics THC & CBD" were launched only 3
weeks ago at the HIGH TIMES Cannabis Cup in Everett
WA and have already sold several thousand test kits with
thousands
more
on
backorder.
We
estimate
"PersonalAnalytics" could become one of the biggest revenue
drivers in the near future for FWDG and its subsidiary, CB
Scientific. Currently the company is in the process of
developing major distribution channels throughout the
United States and Europe, with plans to attend the HIGH
TIMES Cannabis Cup in Amsterdam late November.
Now, anyone anywhere in the world can affordably have a
quick and accurate test to see the relative potency levels of
their cannabis medicine. FWDG is putting power in the
hands of patients worldwide who need to use medical
cannabis and hemp-related products such as CBD oil.
Medical Marijuana, Inc.’s Portfolio Company
Kannalife Sciences Awarded NIH License to
Develop Target Drugs to Treat Concussion
Syndrome CTE Using Marijuana
Medical Marijuana, Inc. (OTC Pink: MJNA) is pleased to
announce that one of its investment portfolio companies,
KannaLife Sciences, Inc. ("KannaLife"), a bio-pharmaceutical
and phyto-medical company, has been awarded its second
license agreement by the National Institutes of Health (NIH) to
develop a drug to treat a concussion syndrome called CTE
using derivatives from medical marijuana. The license
agreement is in effect through February, 2021. In addition to
CTE, in June 2012, KannaLife was previously awarded an
exclusive license from NIH, for the same '507 Patent, for the
development of a target drug candidate for treating Hepatic
Encephalopathy (HE).
Boston University's website cites, "Chronic Traumatic
Encephalopathy (CTE) is a progressive degenerative disease of
the brain found in athletes (and others) with a history of
repetitive brain trauma, including symptomatic concussions as
well as asymptomatic subconcussive hits to the head."
While the NFL is still suspending players for testing for
Marijuana use, past and present players are actively throwing
red flags about the effects of concussions. The issue has
escalated to the point that the NFL has provided the National
Institutes of Health with $30 million in research grant monies
to develop a CTE drug.
Hemp, Inc. Launches Hemp-Based Cosmeceutical Division
Hemp, Inc. (OTCQB:HEMP) announced its first exclusive hemp-based cosmeceutical product line for skin and body care. The
launch of Hemp, Inc.'s cosmeceutical hemp-based line represents a long line of first-to-market innovations for the Company in
continuing its mission of bringing new hemp products to the marketplace.
Bruce Perlowin, CEO of Hemp, Inc. (HEMP), stated, "We are very excited to have our own, exclusive hemp-based cosmeceutical
line. The all-Hemp, Inc. branded products respresents a shift in Hemp, Inc.'s strategic business plan. Previously, we focused on
custom branding our products for other companies such as MJ Lover for Him and MJ Lover for Her (www.mjlover.com),
Herbagenix (www.herbagenix.com), Basic Hemp (www.basichemp.com), and Re-Load (www.re-load.biz)."
"We've now found it advantageous to gain more exposure in the marketplace and promote our own Hemp, Inc. brand of products as
we continue as an operating stage company building each division. We encourage shareholders and the public to try our products
which can be purchased through our website, www.hempinc.com or www.holistichemp.com. Anyone can visit these sites to see, firsthand, the incredible benefits that hemp has to offer," continued Perlowin.
For centuries, hemp has been the ideal base component for healing solutions. According to research reports, human skin responds
extremely well to hemp properties. Thus, Hemp, Inc. (HEMP) strives to be one of the quintessential cosmeceutical brands in the
world.
www.viridiancr.com
31
VIRIDIAN CANNABIS INDUSTRY REPORT
INVESTMENTS/M&A (CONT’D)
Tumbleweed Holdings, Inc. Adds Members to Its Advisory
Board
Tumbleweed Holdings, Inc. (OTCQB: DCDC) is pleased to announce
the additions of Walt Gall, Ph.D and Guy Ironi to our Advisory Board.
Dr. Gall is currently the VP of Healthcare & Strategic Partnerships with
Saffron Technology. Dr. Gall has held senior management and advisory
roles with a number of biotech and technology companies. He received his
Ph.D. in Molecular Biology from Vanderbilt University and a BA in
Chemistry from Hendrix College. Dr. Gall will assist Tumbleweed in
strategic partnerships primarily in the United States and Canada.
Mr. Ironi has many years of experience in operational implementation and
strategic planning and marketing. He will assist Tumbleweed with strategic
partnerships and investments with Israeli companies focused on medical
cannabis products and technologies. Most recently Mr. Ironi was a director
at Vertex Capital and led the successful turnaround and sale of several high
end consumer good brands. He retired as a Captain from the Israeli
Defense Forces and received an MBA from Columbia University and a
BA from MAMRAM, the IDF Central Computer/Technology School.
Mr. Ironi commented, "I am very excited about working with the team at
Tumbleweed to establish our presence in Israel and work with the many
Israeli companies involved in medical cannabis and hydroponics."
Gary Herman, the Company's Chairman stated, "We are pleased to have
Mentor
Capital
Provides
Finance
for Nevada
Cannabis
Walt
and Guy
join our
AdvisorySeed
Board.
I have worked
with both
of them
Fund
and they will be great additions to the team to assist in implementing
Tumbleweed's business strategy."
(Cont.)…..This seed financing was provided through Nevada Cannabis
Ventures, Inc., a wholly owned subsidiary of Mentor Capital, Inc. The
Nevada Company was formed by Mentor Capital to take advantage of the
emerging cannabis legalization in that state. The projected environment in
Nevada could be especially advantageous for Mentor Capital’s business
because it allows for outside ownership, investment and legal usage by
visitors.
Mentor Capital, Inc. CEO, Chet Billingsley, highlights, “Our initial early
investment is $100,000. We like the management team, who are well
known to us.” With regard to the Mentor Capital subsidiary, he continues,
“Much like with this first investment, Nevada Cannabis Ventures is well
positioned to capitalize on the new opportunities in Nevada. As we
executed our plan to rotate out of cancer focused investments and become
more completely vested in the cannabis market, opportunities for
redeployment of cash assets into neighboring Nevada marijuana related
businesses are and will continue to be attractive.”
"We had maxed out our current Boulder headquarters," Mr. Bollich
added. "Securing a long term lease on the additional space provides a big
boost to operating and manufacturing capacity and widens our options for
consolidating any future acquisitions."
www.viridiancr.com
FastFunds Financial Corporation Provides
Corporate Update Pertaining to
Brawnstone Security and the Acquisition
of GrowLightSupply.com
FastFunds Financial Corporation (OTCPk:FFFC)
and its wholly-owned subsidiaries, Cannabis Angel,
Inc., and The 420 Development Corporation,
provided a corporate update as to the progress
currently being made by Brawnstone Security,
LLC ("Brawnstone") pertaining to their entry into
the cannabis security services market in Denver,
Colorado and surrounding areas. In addition, the
Company announces that it has entered into a
letter of intent pertaining to the acquisition of
GrowLightSupply.com, an online e-commerce
marketplace focused on selling indoor hydroponic
equipment, lighting and accessories.
Brawnstone is currently making progress is
transitioning their marketing strategy towards
expanding their current service offering into the
cannabis security market. The Company is
working alongside the management and staff of
Brawnstone to expedite this process by establishing
a physical presence in Denver, Colorado.
Members of Brawnstone's management are
currently initiating the process of packaging this
new business unit by organizing the development
of an online presence and marketing collateral
dedicated to attracting prospective dispensaries in
Colorado in need of Brawnstone's security based
services. As previously announced in a press
release dated July 24, 2014, FastFunds completed
the closing of acquiring a 70% interest in
Brawnstone Security, LLC.
The Company also announced that it has entered
into a letter of intent pertaining to the acquisition
of GrowLightSupply.com ("GLS"), an online ecommerce marketplace dedicated exclusively to
selling indoor hydroponic equipment, lighting and
accessories. GLS is headquartered in Florida and
has been operating since 2009. According to the
unaudited financial information furnished by GLS
to the Company, it is a revenue producing
operation with sizable margins on over 1,100
products that it sells on its website. The Company
is moving forward on closing this acquisition within
45 days of this announcement.
32
VIRIDIAN CANNABIS INDUSTRY REPORT
PHYSICAL SECURITY
The Physical Security sector lost 41.8% in first 9 months of 2014, however it is important to note that Blue Line Protection Group
(OTCQB:BLPG) and DirectView Holdings (OTCPink:DIRV) only entered this sector in at the beginning of Q3’14. As the
smallest sector in the cannabis industry, the physical security sector is beginning to show growth as the cannabis industry matures.
The cash-only nature of cannabis businesses has put participants at higher risk of being burglarized which has made security one of
the most crucial aspects of the marijuana industry, since all cannabis businesses require security measures to prevent theft and
mitigate risk to employees. Businesses need security system solutions not only to protect business assets, but in many cases also to
comply with state regulations. As a result, security consulting has emerged as high-growth vertical of the cannabis industry.
Blue Line Protection Group Sees Huge Growth in Logistics Side of
Business With New Transportation Contract
(Cont.)….. "Today, Blue Line Protection Group has proven that it has the logistic
capabilities to provide safe and secure delivery of lawful cannabis products to
dispensaries across the state of Colorado," said Sean Campbell, Blue Line's Chief
Executive Officer. "This new contract more than doubles the number of
dispensaries to whom we deliver lawful marijuana products."
According to the contract, Blue Line's armed personnel will provide secure
transportation for RevTec LLC, a marijuana infused product manufacturer located
in Denver. RevTec provides its infused products to approximately 50 marijuana
businesses located throughout the state of Colorado. In addition, Blue Line will
provide armed protection services to RevTec's new retail location, located just west
of downtown Denver.
"We used to provide secure delivery to about 33 locations around the state,
primarily in Denver," said Dan Sullivan, Blue Line's Vice President of Sales and
Training. "But with this new transportation contract with RevTec, we'll be
increasing the number of our delivery locations by about 150 percent, to over 80
locations throughout the state. That's incredible growth for our company, and it
demonstrates the faith our clients have in our ability to safely deliver their
products."
"No other cannabis protection company has the multi-state reach that we do, nor at
this point anywhere near the experience we have earned in the industry," added
Mr. Campbell. "And as we grow in our delivery services, we plan to expand our
seed-to-sale compliance services to those very same locations. In my view, building
and maintaining a lawful and legitimate industry isn't just about getting the product
safely to where it needs to be. It also involves ensuring that every part of the
cannabis supply chain can be independently validated and scrutinized, so that our
clients can prove -- because of our compliance audits -- that they are meeting or
exceeding all state and federal regulations. We want this industry to be completely
transparent, and because of our chain of control, we can help prove that our clients
are doing everything to operate as responsible members of the industry."
www.viridiancr.com
DirectView Security Completes
Cannabis Facilities Security and
Surveillance Installations
DirectView Holdings, Inc. (DIRV), a
company focused on ownership and
management of leading video and security
technology companies, today announced
that it has completed two security
installations in the Denver, Colorado area
and expects to begin work on a third in
September pending permit approval.
These three installations are a direct result
of the Company's recently announced
strategic partnership agreements with
several companies including Legacy
Construction Company of Colorado,
LLC., a privately held Colorado-based
construction company who specialize in
legal cannabis growing and dispensing
construction and remodeling projects.
DirectView has installed an initial
comprehensive package of security and
surveillance equipment at facilities
including the installation of IP megapixel
security cameras, NVR's and intrusion
alarm systems. DirectView anticipates
generating approximately $140,000 in
revenue upon completion of the three
installations. The Company has additional
security and surveillance proposals
currently undergoing evaluation totaling in
excess of $500,000. growing consumer
demand."
35
VIRIDIAN CANNABIS INDUSTRY REPORT
REAL ESTATE
Following a negative return of 56.19% in 2013, the Real Estate sector has been the worst performing sector through the first three
quarters of 2014, declining 63.5%. With all the companies experiencing a negative return, Agritek Holdings (OTCQB:AGTK)
experienced the smallest decline, losing 18.2%. However, the Company announced promising news late September, regarding its
proposed tenant, My Life Organics, receiving further approvals for cultivation and special permit licenses within the state of Nevada,
as well as the 3.5 acres within the Nevada “Green Zone for the associated project expected to close sometime in November once
final licensing is received within the state. The Real Estate sector is poised for growth going forward, driven by more states
establishing regulated medical and recreational marijuana markets, resulting in the need for zoning approved real estate from
cannabis entrepreneurs in these states. When applying for a dispensary or cultivation license, each applicant must have a piece of
property for the dispensary or cultivation facility attached to the license application. Due to the scarcity of real estate that meets the
stringent requirements, these properties are valuable and difficult to obtain. As increased demand from entrepreneurs seeking to
open cultivation sites and dispensaries creating prices for such properties to soar, companies have numerous opportunities to acquire
these real estate properties and lease it out to potential operators at a premium.
Agritek Holdings Inc. Announces Shareholder Update on Colorado and Nevada Recreational Agricultural
Properties
Agritek Holdings, Inc. (OTCQB:AGTK) a leader in Compassionate Care Technology and indoor/outdoor agricultural solutions for
the medicinal marijuana industry, today announced the following updates to shareholders and investors regarding advancements in
the Company's agricultural properties in Colorado and Nevada approved for cultivation.
With regard to the Colorado property located in Pueblo County, the Company has to date received approximately eighty thousand
dollars ($80,000) in first commitments for build out of greenhouse structures within the agricultural farm project. The first leases
consisting of at least three year terms are expected to be executed in the next few weeks which include the build out of greenhouse
structures, cultivation facilities, security services, water and utilities. The Company has received approval for engineering plans,
surveys and design of greenhouse structures by several tenants on the first plots of land released for the project consisting of 40 acres
in Pueblo County. Agritek Holdings will receive revenue consisting of rents for providing infrastructure, management and utilities to
approved and licensed grow operations and manufacturers within the recreational jurisdiction.
The Company is also pleased to announce that our proposed tenant, My Life Organics, LLC, recently received further approvals for
cultivation and special permit licenses within the state of Nevada. The Company has entered a contract for purchase of land
consisting of 3.5 acres within the Nevada "Green Zone" with plans to build a 40,000 square foot facility. The real estate closing in
Nevada for the land project is expected to close sometime in November once final licensing is received within the state.
"The process of receiving approvals for water use, engineering and achieving licensing on behalf of our tenants for these real estate
projects within the recreational market in two key states has proved to be an intricate task. However, we are at the tail end of finalizing
documents and beginning construction which we believe will prove to be a showcase model that will demonstrate to each state how
this sector can be both compliant and profitable for the states we operate in. We are confident that our business model will instill
confidence over the coming months to our shareholders, tenants and jurisdictions where we are holding land assets and operations,"
stated B. Michael Friedman, CEO of Agritek Holdings.
www.viridiancr.com
33
VIRIDIAN CANNABIS INDUSTRY REPORT
REAL ESTATE (CONT’D)
Cannabis-Rx Provides Update on Q2 Investment Activity
(Cont.)…. In the past 60 days, Cannabis-Rx purchased six properties, located in Washington, Illinois and California, for a total of
$2,461,675, and sold five separate properties for a total of $1,887,800 in Washington and Florida.
“We are very pleased with how our pipeline has progressed thus far in the second quarter of 2014,” said Llorn Kylo, chief executive
officer of Cannabis-Rx. “We have continued to successfully locate, rehabilitate and sell distressed real estate for attractive returns,
which reflects our ability to execute on our business strategy. Moving forward, we will continue to aggressively look for suitable
commercial properties to purchase that cater to the licensed marijuana industry.”
Currently, Cannabis-Rx owns 35 properties located across Washington State, Illinois, California, and Florida. Seven of the properties
are listed for sale, seven are under contract to be sold and 21 are in the process of being rehabilitated. To date, Cannabis- Rx has
achieved an average percentage internal rate of return (IRR) per property of 32.43 percent.
Mountain High Acquisitions Corp. Completes Positive Greenhorn Property Due Diligence
Mountain High Acquisitions Corp. (OTCQB: MYHI), a strategic real estate holding company whose primary focus is the acquisition
and development of commercial properties in the cannabis sector, is pleased to announce that the Company has completed all preclosing due diligence regarding its previously announced letter-of-intent to acquire the 2.38 acre property and related structures in
Pueblo, Colorado, known as the Greenhorn Property.
"We are excited to have successfully confirmed all the required title, zoning, water, and power related due diligence surrounding our
planned acquisition of this outstanding development property in Pueblo," stated Alan Smith, President of Mountain High
Acquisitions Corp. "With this due diligence work behind us, we anticipate completing a definitive acquisition agreement with the
vendors and closing the deal within the next 7-10 days."
The 2.38 acre Greenhorn Property is ideally located adjacent to the Pueblo Freeway and meets all zoning requirements of the
municipal authorities for the cultivation of marijuana and preparation of marijuana related products. The property currently holds an
approximately 2,800 sq. ft. industrial use structure, and includes full grow rights for municipal water and a zoning allowance to build
the entire footprint of the property two stories high with no set back.
Mr. Smith added, "Our immediate Phase 1 development and improvement plans for the Greenhorn property include engineering
and building an initial 20,000 sq. ft. state-of-the-art greenhouse space and also securing a lease agreement with an experienced
cannabis cultivator and dispensary license holder. Longer term plans for Greenhorn include an additional 60,000 sq. ft. of
greenhouse expansion. We will discuss our additional strategic development plans for the property following closing of the
acquisition."
In addition, the Company has allowed the agreement with Deep Blue Enterprises LLC regarding the acquisition of three properties
located in Colorado to expire. "The decision to not proceed with the Deep Blue transaction will allow the Company to more fully
focus its energy towards continuing to build a first-rate portfolio of cannabis focused properties and other related assets," concluded
Smith.
www.viridiancr.com
34
VIRIDIAN CANNABIS INDUSTRY REPORT
SOFTWARE
After gaining 213.3% in 2013, the Software sector declined 14.8% during the first 3 quarter in 2014. The only winner in the group was
BreedIT (OTCQB:BRDT), up 28.6% through Q3’2014, as the company announced that Colorado based INTIVA Pharma LLC which
invests in companies and otherwise participates in the development of pharmaceuticals from cannabinoids, has made an initial $200,000
investment out of a potential $800,000 investment. Growth in the Software sector is driven by states increasing regulations in their
respective cannabis markets, resulting in the necessity of a high level of accountability and regulatory compliance for companies operating
in the industry. Many operators are seeking software, since local regulatory bodies have made it a requirement that dispensaries and
cultivation facilities implement a “seed to sale” system to ensure regulatory officials can trace the product from cultivation to sale. In
addition to meeting security requirements, software providers also offer commercial benefits, including the ability to scale, standardize,
automate, track, manage cost centers, analyze key performance indicators (KPIs), communicate with other web based applications like
regulatory bodies, manage inventories, plan, budget, report, point of sale, and time tracking.
WeedHire.com Ranked Number One Most Visited Career Site
for Legal Marijuana Jobs
AnythingIT (OTCQB:ANYI) announced that its website WeedHire.com was
the most visited career site in the legal cannabis industry during the month of
August, according to SimilarWeb, which measures online behavior worldwide.
"Reaching the number one spot in just three months is an exciting sign that
WeedHire.com really has become the go-to place for job opportunities in this
space," said WeedHire.com CEO David Bernstein. "The traffic to our site
shows that this industry is growing rapidly and a real need exists to match
employers with skilled professionals who are passionate about obtaining work
in the legal marijuana industry."
WeedHire.com was launched in May 2014 as the premier marijuana jobs site
for the legal cannabis industry. In addition to the website, WeedHire.com
recently launched the first-ever Android job search app for the industry. The
app lets employers post openings from the convenience of a mobile device and
job seekers can search in a specific geographic area, upload resumes, submit
them and share job posts with friends. The site is also preparing to launch a
similar app for the iPhone.
Although WeedHire is the central online portal and social media source for
job seekers and providers, it is not involved with the growth, sale, or
distribution of marijuana.
SimilarWeb provides services in web analytics, data mining and business
intelligence for international corporations using big data technologies to collect,
measure, analyze and provide user engagement statistics for websites and
mobile apps.
www.viridiancr.com
Medical Cannabis Payment Solutions
Secures $500,000 Strategic
Investment
Medical Cannabis Payment Solutions
(OTCQB:REFG), a leader in technological
solutions for the medical cannabis industry,
today announced a $500,000 strategic
investment, which includes a stock purchase.
The investment is a significant endorsement
of Medical Cannabis Payment Solutions’
strategy to grow its payment business and
other horizontal markets.
"Medical Cannabis Payment Solutions is a
respected industry player, which is why this
investment is a great validation of our
strategy," said Jeremy Roberts, Medical
Cannabis Payment Solutions CEO. "The
additional funds will be instrumental in
providing the liquidity we need for marketing
and revenue growth. But the endorsement is
just as important."
"With our fully developed and fully
deployable solutions, we are excited to have
the resources necessary to take Medical
Cannabis and its products to market," said
Tyler Young, CTO of Medical Cannabis
Payment Solutions.
36
VIRIDIAN CANNABIS INDUSTRY REPORT
SOFTWARE (CONT’D)
Endexx Completes Acquisition of GreenLeaf
Consulting LLC
Endexx Corporation (OTCPink: EDXC), a provider of
innovative medical marijuana management and technology
solutions, announced today that it has completed the acquisition
of GreenLeaf Consulting LLC., a pioneering New Jersey
consulting firm for the medical marijuana industry. Under the
terms of the acquisition, Endexx has issued 3 million shares to
GreenLeaf Consulting in an all-stock transaction.
GreenLeaf Consulting is currently servicing existing accounts in
Connecticut and Massachusetts and recently added to its
portfolio a new contract with a Chicago, Illinois, medical
marijuana applicant. GreenLeaf Consulting is also in
negotiations to consult for policy makers and legislators in
Connecticut and Massachusetts for the formulation, adoption
and implementation of medical marijuana programs at the state
level.
M3Hub Seed to Sale inventory tracking and management
platform will be offered as the solution for compliance tracking,
program oversight and to streamline management processes and
increase overall efficiencies. Todd Davis, Endexx CEO, stated:
"GreenLeaf Consulting is a proven expert and ideal partner that
puts Endexx more firmly on the path to long term revenue
growth. On top of hourly rates, each consulting contract comes
with an equitable interest in the ongoing operation of the
underlying entity, resulting in increased ROI, profitability,
operating efficiency and ultimately benefitting all customers and
Endexx’s bottom line."
SinglePoint, Inc. Subsidiary SingleSeed Payments
Launches Premiere Website Boosting Sales Past
Initial Projections
(Cont.)…. Which puts SingleSeed on pace to become one of
the largest payment solution providers to the cannabis
industry. Many new clients have come through SingleSeeds
newly released website www.singleseed.com, as well as
SingleSeeds ad with Leafly which generated over 1,000
unique views in the first two weeks and has been renewed to
run again. GeekWire.com recently ran an article
http://bit.ly/SingleSeed-Leafly that has help spread the
recognition of SingleSeed throughout the US.
CEO Greg Lambrecht comments, “I am very pleased with
the success of the website, it provides instant validation for
our company and has increased our inbound sales traffic
week over week … we had a plan to build a great website,
generate new accounts and lead this market with our
technology and we are doing it.”
SingleSeed sales efforts are paying off. Garnering more
accounts each week. In an effort to be a payments empire in
the estimated 40 billion dollar (according to CNBC.com)
cannabis industry SingleSeed is implementing a responsive
sales strategy preparing to grow their team beyond their
already established teams in Washington, Denver, Oregon
and Arizona. SingleSeed and SinglePoint are actively
engaged in acquisitions to further company growth and
account acquirement.
BreedIT Receives Strategic Investment from Colorado-Based INTIVA Pharma LLC
BreedIT Corp (OTCQB:BRDT), through its Israeli subsidiary, BreedIT Ltd., the exclusive worldwide license holder and distributor
of highly sophisticated agro-breeding solutions software for plant breeders and researchers, today is pleased to announce that
Colorado based INTIVA Pharma LLC which invests in companies and otherwise participates in the development of pharmaceuticals
from cannabinoids, has made an initial $200,000 investment out of a potential $800,000 investment in the Company in the form of
straight equity restricted stock at a purchase price of $0.30 per share. INTIVA Pharma is a wholly-owned subsidiary of Global
Cannabis Ventures Ltd. ("Global Cannabis"), a company pursuing opportunities in the legal cannabis industry internationally.
Global Cannabis owns 80 acres of land in Colorado on which it is assembling greenhouses to be leased to legally licensed growers of
cannabis. It has also acquired minority interests in three Canadian businesses that are becoming legally-licensed to grow and harvest
cannabis.
Richard Greenberg, the CEO of INTIVA Pharma LLC and Executive Vice President of Global Cannabis, commented, "We see our
initial investment in BreedIT as being very strategic for both Intiva Pharma and Global Cannabis Ventures. Our motivation for the
investment was our belief in BreedIT's opportunity to become a global leader in the breeding and licensing of high quality cannabis
seeds. More importantly, with our firms' presence and involvement in the marijuana industry in both Colorado and Canada, we have
an opportunity to help the company grow. We look forward to what we know will become a long-term and mutually beneficial
strategic relationship between our companies and BreedIT."
www.viridiancr.com
37
APPENDIX
APPENDIX (CONT.)
VIRIDIAN CANNABIS INDUSTRY REPORT
This report is for informational purposes only. Readers should review all available information on any company mentioned, which may include, but not
be limited to, the company's annual report, quarterly report, press releases, as well as other regulatory filings. The information contained in this report
does not constitute an offer to sell or a solicitation of an offer to buy any equity or debt securities of any Issuer. The information contained herein is not
and shall not be deemed to be part of any prospectus, or offering memorandum, notice or circular relating to the capital stock or debt obligations of any
Issuer. The reader of this document should not rely upon the information contained therein in making an investment decision and should communicate
any questions relating to any Issuer to their Financial Consultant. Viridian Capital & Research and/or its officers and employees, and/or members of
their families may have a long/short position in the securities mentioned and may make purchases and/or sales for their own account of those securities.
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