PLAYERS NETWORK CEO MARK BRADLEY UPDATES SHAREHOLDERS ON THE COMPANY’S CONVERTIBLE NOTES, FUTURE OUTLOOK AND MORE
July 23rd, 2015 – Las Vegas, NV – Player’s Network, Inc. (OTCQB: PNTV), a fully reporting publicly traded diversified holding company which operates in two areas; Media and Medical Marijuana, announced today a shareholder update:
Dear Shareholders,
A few years ago I began publishing regular shareholder updates. I believe this year’s update is the most important. There are two sides to all public companies, the operation side, and the public / stock market side. One side’s success is not always reflected by the other, which is frustrating for any CEO. It certainly is for me, because PNTV’s current stock price does not come close to reflecting the company’s true value, or its near-term operational opportunities.
It’s now been over four years after Comcast breached its agreement with the shareholders of Players Network (see “Comcast Lawsuit” section below) PNTV had to find a way to reinvent itself from becoming a traditional mainstream On Demand cable service to our current direction as I will explain below. This breach gave the company few funding options, so out of necessity incurred convertible debt financing. Why? Unfortunately in today’s investment climate the SEC, FINRA and the brokerage community at large has over regulated investment in small cap companies, tightening access to growth capital through traditional means. Those of you who know me, know that quitting has never been an option as long as there is still an opportunity to increase shareholder value. As a result I made a difficult choice to accept the only investments that were available.
The good news is that the number of convertible notes has been reduced substantially. Nearly $500,000 has been eliminated. We now have just a few note holders who are, fortunately, some of the best people in the industry. With the toxic notes eliminated, as I disclosed in my June 30th press release, I expect to see an orderly market rebuilt, and those, like short sellers that pre3y on companies who have speculated on the supply of shares the notes have created, will eventually be forced to cover.
There is a saying in Buddhism, “Turn poison into medicine”. That is what PNTV is in the process of doing. The notes we incurred provided capital that allowed us to build our NextGenTV Platform Version 3.0. The results of this new version are incredible. The platform now allows us to create an unlimited number of Branded Digital Channel Destinations in any lifestyle category, with Social Communities, a vital Marketplace, and many additional ways to monetize the viewing of videos.
Early feedback from prospective customers and users indicates that our business model will raise the bar on the way Digital Networks are built and monetized. Our first Channel Service to be launched by the last week of August is WeedTV.com (see “Green Leaf Farms Holdings” section below).
PNTV’s NextGenTV Platform combines practical applications with strong business tools that are efficient and easy to use. Once deployed, the Channel becomes part of a larger, targeted Network utilizing our Content Management System. Our solution allows personnel with minimal marketing skills to function like highly skilled, highly paid senior marketing experts. This lowers our clients’ marketing costs and allows them to stay connected to their customers, as well as capture new ones to compete on a higher scale through content distribution, for only a reasonable monthly license fee paid to PNTV.
Green Leaf Farms Holdings:
Green Leaf Farms Holdings Inc., a privately held company owned 80% by PNTV and 20% by private investors, has been granted two licenses in Nevada, one for cultivation of medical marijuana, and the other for production of cannabis-based products such as edibles. These privileged licenses are extremely difficult to win, but GLFH won them.
A final obstacle was recently overcome when we received State approval to move from our original location, raw land in the desert, to an existing building already approved for our business purposes. This move was literally accomplished by an act of Congress. PNTV lead a lobbying group, and worked with Senator Richard Segerblom to change the law with the passage of Nevada Bill 276, allowing our beneficial move that will save us about a year in construction and shorten the time to begin realizing the significant revenues the Medical Marijuana (MME) Industry generates.
Our Media technology, expertise and experience will allow WeedTV.com to not only market GLFH’s own branded products, but to be a powerful marketing platform for approximately 70,000 small and medium size businesses in the medical marijuana sector including dispensaries, cultivators, doctors, manufactures, consultants, public companies, smoke shops and more. Business can chose from self-operated marketing packages starting from as little as $150 per month, to enhanced media service packages that costs up to several thousand per month.
WeedTV’s goal is to surpass the number of clients, and amount of revenue generated by platforms like WeedMaps and Leafly that are both generating about $30 million per year. Our Plan is to use WeedTV.com to launch NextGenTV, then expand to other Lifestyle Categories, creating a network of Digital Lifestyle Channels under the NextGenTV umbrella.
Having overcome all licensing obstacles, GLFH is moving into the design and engineering stage and seeking to raise the additional capital to open our facility. After exploring several options, we selected “3C”, a highly creditable consulting firm out of Colorado that has 7 years of experience in the MME industry. With their assistance we have made tremendous progress completing enhanced business and marketing plans to garner the initial $6,000,000 investment needed to convert our 22,000-square-foot, single story building, into a 38,000 square foot, two story, state-of-the-art production and cultivation facility.
At full capacity, the facility is projected to generate approximately $42,000,000 per year in revenue. We expect to be at full capacity by the time Nevada follows Colorado and Washington and legalizes the sale of recreational Marijuana in 2016 / 2017. At that time Las Vegas will become an even more lucrative recreation destination for first-mover companies like ours. With this business opportunity looming, we have many large funds interested in funding our operation.
The Comcast Lawsuit
PNTV’s $150,000,000 Lawsuit against Comcast was filed in Nevada in January 2014. It charges Comcast with breaching its ten (10) year contract with PNTV entered into in 2005. The contract requires Comcast to support PNTV’s “Vegas On Demand” VOD Channel with the same resources they support their own VOD Channels, which includes providing PNTV with Dynamic Ad Insertion (DAI), which Comcast failed to do, despite the fact it activated DAI on its own VOD channels in addition to several other claims.
PNTV’s lawsuit ascribes significant loss of income and market value due to Comcast’s breach. Comcast’s high-priced lawyers have made multiple attempts to get the case thrown out. PNTV has prevailed in each attempt. The lawsuit is now in its second phase of discovery and is expected to go to trial in 2016 (unless of course Comcast offers a significant settlement prior to a trial). PNTV has the additional advantage of winning the right to have the lawsuit filed in Nevada, with a Nevada jury deciding the case, and the amount of damages awarded to our small, local company undermined by a media behemoth from Philadelphia.
The second round of depositions are scheduled to be held from mid-August to early September, there after we will be entering the damage stage and validating our losses with expert witnesses.
Corporate Structure: PNTV has had 600 million shares authorized, and issued about 270 million over twenty years. This past week, PNTV filed to increase its authorized shares to 1.2 billion. Often when companies increase their authorized shares investors worry about dilution. Let me assure you that we intend to take the same measured approach we have taken historically. This reason for the increase is that the company has many shares tied up in the outstanding notes referenced above. Due to that reservation of shares, and our low stock price, PNTV has little leverage to use our currency. Thus we need to have more shares available for opportunities such as mergers and acquisitions, new investors, and spin offs, etc. That is why it is imperative for PNTV to gain back its leverage, and having more authorized shares can provide us that leverage.
The Future:
Our NextGenTV Platform allows PNTV the opportunity to become a leader in Media and Technology.
Green Leaf Farms Holdings, Inc. provides an opportunity to become a leader in the lucrative MME Industry.
While having two vertically integrated business sectors is optimal in many ways, Wall Street often prefers two separate sectors. Thus, as GLFH ascends toward that individual goals, in two to three years may will likely consider spinning it off into its own public company with its own dedicated management team. If this happens, you, our shareholders, will have stock in two viable public companies, creating a substantial dividend.
With most of our development behind us, the company can now focus on generating revenue from NextGenTV, Channels Partnerships, WeedTV.com deployment and Green Leaf Farms, not to mention a positive resolution to our Comcast lawsuit.
If only one of these opportunities is successful, PNTV will be able to leverage its unused assets, such as our 27-million-dollar tax-loss-carry-forward, that will allow us to keep more cash in the company.
If you would like to do your own due diligence, we have published both our overall Business Plan, and our Power Point on Green Leaf Farms, on the following link:
I hope this update has provided you with insight into our company’s struggles to win in today’s precarious business battlefield, our challenges, our victories, and most of all, my determination to reward you, the shareholders, for your support and loyalty. I hope this has made you a bit more enthusiastic about PNTV’s potential for success.
Please feel free to contact me any time to answer your questions.
Sincerely,
Mark Bradley CEO
About Players Network: Players Network is a diversified company with holding in Medical Marijuana and Media. The Medical Marijuana asset is primarily through the Company’s 80% ownership in Greenleaf Farms Holdings. The Company that uses its proprietary Enterprise Web Platform to develop Branded Digital Lifestyle Television Networks for itself and its partners in a wide range of lifestyle categories. Players Network’s current original channels, “Players Network”, “Vegas on Demand”, “Real Vegas TV”, focus on Las Vegas and Gaming Lifestyles. The newest channel “WeedTV.com focuses on the rapidly expanding cannabis community. These channels are distributed over PNTV’s owned and operated VOD Channels on TV in over 23,000,000 homes over Comcast, its Broadband Network and Mobile Platforms, on Hulu, Google, YouTube, Blinkx and Yahoo Video, on DVD, and through worldwide television syndication. For more information please visit www.playersnetwork.com
Statement under the Private Securities Litigation Reform Act: With the exception of the historical information contained in this Release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to: the ability of the Company to increase revenues in the future due to the developing and unpredictable markets for its products, the ability to achieve a positive cash flow, the ability to obtain orders for or install its products, the ability to obtain new customers and the ability to continue to commercialize its products, which could cause actual results or revenues to differ materially from those contemplated by these statements.
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