Green Leaf Innovations Inc (GRLF)

[Snootable_Snunshine]

NEW Ask The CEO!


11 JUN 2014

I received an email yesterday from a shareholder and after providing a fairly lengthy response, thought I would share it as it provides a good insight into what is happening at GDSM. The shareholders email is as follows:


> Hi Mr. Shea,
>
> I hope this email finds you well.
>
> I just want to quickly inquiry on a few things:
>
> How close we are with the financial audits? Can we realistic expect
> this to be complete before month end?
>
> Will you be announcing any revenue generating aspect of the business soon?
>
> Can you disclose which banking institution is backing our MJ merchant
> business?
>
> Thanks in advance for your response.


MY response is as follows:


Hi XXXXX, thanks for the email. Let me address your questions:

1. I provided all the info to the auditors for 2011 and 2012. Now I will be the first to say, many items are missing, Lovito et al, did not really keep books and records (e.g. corporate resolutions, minutes...). But I do think the auditor can look past that. I spoke to the auditor 10 days ago, and he said forget 2011, let's just do 2012 and 2013, which makes sense as that is what I really need. By the end of this week, all 2013 info will be provided and per the auditor, it should take two weeks. So end of month is a target.

2. On the revenue generating business, we have had several applications for MJ-Merchant. The process is they sign up on line (just name, number, and other basic info). This gets sent to me and the merchant card processor. The card processor follows up with a call and then email. Unfortunately, many of these applicants are dispensaries and they aren't very good at picking up the phone or responding to emails. They are not very trusting and in fact, one called me and said he did not feel comfortable feeling out a form and asked that I have the card processor contact him directly. Which I did.

3. Revenue producing assets: Since the launch of mj-xchange and mj-merchant, we launched a marketing campaign. Post cards were sent to approximately 600 dispensaries, doctors etc., that were listed on the mj-xchange website. The message was simple, we created this site, have hundreds of members, your biz is listed, please check to see if the info is correct, and by the way, we are offering 30 days of free advertising and thereafter pay per click.

I am now hiring this week, on a contract basis, someone who will call all 600 and keep calling to get a response.

The list of dispensaries, head shops, etc. listed on the exchange is now over 2,000. Another post card mailing will happen early next week regarding mj-merchant and the contract caller will beat the phones again. She will call 8 hours a day, 5 days a week for a month. So I do believe we will generate solid advertising revenue, but quite frankly, the merchant card revenues should be substantial. I can't tell what percent we get, but we a fairly decent share of the processing fee (3-4% of goods purchased) for every transaction of the accounts we sign up.

In terms of who the merchant card company and bank is, quite frankly, I can't disclose it. The merchant card processor is a firm that has been in business for over a decade and I know people who use them for their regular businesses. The bank is a small institution. If I had an exclusive with the processor and the bank, I would have no problem disclosing them. But I have had several calls for others looking to replicate what we are doing, asking for the same thing. Disclosing only gives the info to my competition. Obviously, applicants find out.

4. Lastly, the E-Commerce site, which will be live any day and will have 500+ items, some in which we buy direct and others through distributors. Profit margins range from 10-50%. While some of the products are the same as others carry, I am also focusing on some items that specially crafted by small artisans that will allow us to have some unique products.

At this point, all I am working on is the audit and e-commerce site, and launching the marketing effort. With the E-Commerce launch we will have three very viable products to sell, advertising, merchant bank card services and mj products. I need to make sure sales start this month and obviously, the month end includes our participation/exhibiting at the Inaugural Cannabis Investor Conference at which we will showcasing our products.

XXXX, I know it has been a long road and the share price and volume suck. But I honestly think we are on the right track. Once the audit is done, Form 10 filed and revenue is being generated, then I can focus on the adserver product. Right now, I don't have the capital to invest nor the bandwidth. There have been too many setbacks and these products have to be successful and will require my entire attention.

This email is probably more than bargained for, wanted to explain where we are as fully as possible.

Regards,


http://gdsmholdings.com/investors/ask-the-ceo1.html