American Green Inc (ERBB)

[1vman]

Excellent points "Night Falls" worthy of another read !!!and sticky

***A NOTE TO AMERICAN GREEN'S PRESIDENT***
I'll say it again, this "shareholder's note"from Stephen Shearin is nothing more than damage control. Less than 2 weeks ago nearly the exact same "note" was written for the May 2015 Shareholder's "letter." So below is my point by point (my words are in RED) breakdown of the latest "note." There is a stark lie in Shearin's "note" where he claims that HEAL CBD product sales are "so encouraging" that AG is increasing inventory, yet a few sentences later he states that the products are not even available for sale. WTF? How can sales be so great if the products aren't even being sold yet? SHADY!!!

Have a nice read:

2015 continues to be a year of important advancements for both the industry, with more states and municipalities recognizing the value in changing their cannabis policies, and for American Green as we evolve and grow into that changing landscape. This has involved (and will continue to involve) a large-scale plan whose inner workings are not always evident along with a process that does not always reflect in the share price. A "plan"? Seriously? And what plan is that? Frantically stencil AG logos on cultivation hardware? Scaling the cultivation hardware to a wholesale level? Getting only 10% of the current Zazzz machines working but not really working? Chase the oversaturated CBD market? Drop the ball on major Jurassic Water orders?

That being said, let me assure you that all of the initiatives that we have been excited about over that past year continue to grow and perform. Internally, the American Green “numbers” should be constantly improving while our company remains on a path that laser-focused on becoming the clear market leader within the year. Grow, perform, laser-focused, constantly improving? Great buzz words. Not one of which I would use to describe the AG over the last 12 months. AG is not "laser-focused", more like the laser was shot through a beam splitter. As noted above, there seems to be no game plan, just chasing the new, shiny things like a child in a toy store. Chasing cultivation hardware as if AG could actually scale the products to a level that would be profitable. Chasing the CBD market as if AG has the capital or staffing for top notch R&D on high grade CBDs, instead likely just slapping AG labels on inferiors hemp goods. Zazzz, well we all know that sob story. OneBode flop, Jurassic Water flop........this is NOT how a company becomes a market leader.

ZaZZZ has obviously been at the forefront of all our minds. No kidding! Its the only part of AG that matters. AG will NEVER scale the CBD or cultivation business to the point where it is profitable. Zazzz is the only hope. What we learned from putting out one machine, then two machines, then eighteen more into twelve locations was essential information obtainable only through real-world use. Oh, please do elaborate what you have learned from this real world use. Please tell what you have learned from the utter failures that were the Herbal Elements, Doctor's Orders and Hempful Farms Zazzz machines. This new information has allowed us to make a much more directed plan as we progress with the ZaZZZ Network. The "Zazzz Network"? You mean that junk website with zero worthwhile info about actual Zazzz locations. And how many of those machines listed on that site are even operational because the very first listing of Hempful Farms is GONE? The joke amongst ourselves is that we went about this “ZaZZZ backward,” (the joke amongst shareholders is DiZazzzster and DistERBBed) and while it’s good for a laugh on tough days, it’s no joking matter. They are expensive, precision machines (puhlllease, thats because you wasted money and time with a pointlessly flashy flatscreen) that are the foundation of American Green’s future revenues and growth. Yes they are the "future" but the "foundation"? If Zazzz is the foundation the AG is not structurally sound because the foundation of revenues has barely made more than a 711 cashier makes in a week of work. Stopping short of giving away the secrets we discovered during our previous launch stages, let me simply say that the successful model in our next ZaZZZ rollout will reflect the knowledge we’ve accumulated along the way. I sure hope so! American Green is doing things that have never been done before and we’ve been able to adapt with lightening-quick reflexes. In the next few months, we will be able to share glimpses of American Green’s future with you. I think you’ll be very impressed.

Sales of our CBD (and soon our own line of HEAL products) has been so encouraging, that we decided to increase our inventory by 400%. WTF? Are these "encouraging" sales anything like the "month over month doubling" of OGTea sales that never showed up in the earnings report? And this is the first we are hearing about HEAL? I'll believe this if it ever shows up on a financial statement but we've heard these empty forward looking statements before. BUT THE REAL LIE IS BELOW What that means in real terms is that where we were committing to a kilogram at a time we are now committing to four kilograms based on current market demands and our ability to sustain acceptable margin levels. And the HEAL products aren’t yet being sold. WHAT THE F..K DOES THIS MEAN BECAUSE THE FIRST SENTENCE OF THIS PARAGRAPH SAYS SALES ARE SO "ENCOURAGING" THAT YOU'VE INCREASE INVENTORY!!!!!!??!?!?! This is our fastest growing and probably our most exciting initiative in the short term as far as incremental revenues are concerned. BULLSH....

In cultivation, OG Tea, and Truth continue to perform above forecasted levels. Truth will be featured in a prominent national magazine this summer having out-performed all the competition. As soon as it is available to consume digitally or on a newsstand, we’ll let you know. Again, you'll NEVER scale any of this to the point where it is profitable so please just stop wasting time and money in these sectors!

In sum, I know that in the absence of big news, rumors can fill the space that is left and I encourage you not to fall prey to those rumors. THESE ARE NOT 'RUMORS', THEY ARE VALID SHAREHOLDER CONCERNS. Gossiping about share count, claiming fraud...those are rumors, asking how many Zazzz machines are actually operating is a legitimate question!?!?! You have been with us in good times and stayed with us in challenging times. Your support is vital and appreciated and I believe is well justified. We are a team of dedicated professionals who work daily to see all of our goals met and more. Thank you for your patience and hold on tight for a positive future that we see as immediate and very hopeful.