American Green Inc (ERBB)

[KickolasNage]

American Green didn't purchase Nipton.

The deal is not complete.

Would be nice if news outlets would actually fact check their articles before they post them. The Nipton, CA plot is 80 acres, and ERBB hasn't paid $5 million for it. The property is still listed on the market as "For Sale" by Sky Mesa Realty:

http://direct.propertyline.com/castrigano/

No deals have been closed, American Green does not own Nipton. I don't know why it is so hard for people to check this, don't take everything the company says for face value.

Not only that, but the realtor even said American Green doesn't own it:

"Broker Tony Castrignano of Sky Mesa Realty, who is listing the property, cautioned that no sale has closed. He described American Green as a "serious prospective buyer," but said there are other serious prospective buyers, too." - Rosalie Murphy, Desert Sun

http://www.desertsun.com/story/money/business/2017/08/04/marijuana-nipton-american-green-buying-town/537931001/

The mayor of the town, Jim Eslinger, doesn't even think the owner will sell to American Green:

"Roxanne (Lang, the owner) is not going to sell the town to a marijuana grower, simple as that," he said. "We have other people that have deep pockets that are interested." - Jim Eslinger, mayor, and longest resident of Nipton, CA

http://www.desertsun.com/story/money/business/2017/08/04/marijuana-nipton-american-green-buying-town/537931001/

If by some chance American Green even manages to scrap together $5 million to purchase the town, they can't grow or sell weed there:

Commercial marijuana cultivation and sales are illegal in unincorporated areas of San Bernardino County. Knowing the past history of Nipton, CA, they'll probably want to stay unincorporated to keep their water aquifer out of municipal hands. That's probably why American Green has been pushing cbd infused water, cbd spas, and cbd edibles... they can't legally sell marijuana there. Just snake oil.

"The press release made no mention of the purchase price, reported elsewhere at $5mm, or the terms of the deal.

The media bit hard on this story, but not one writer took the time to discuss the most perplexing aspect of the story: How can this company afford the purchase? American Green is proud to have been in the cannabis industry since 2009, but it has very little to show for its efforts to date. A review of its recent financials for the fiscal 2017 third quarter ending March 31, show a company in distress:

Cash of just $191K
Assets of $2.096mm, but only $296K of which are current
Liabilities of $8.76mm, over $8mm of which are due within a year
Negative equity of $6.67mm

American Green has been an incredible disappointment for investors since inception, as the company has failed to produce material revenue but has dramatically increased its share-count due to the issuance of stock to holders of its convertible debt

Investors should be extremely cautious, as the company, which doesn’t file with the SEC, doesn’t have the financial capacity to buy the town or develop the project. It has historically relied upon convertible notes to fund its money-losing operations, and they have extremely onerous terms, perhaps among the worst of any OTC borrower, as the note-holders have the right to convert at 50% of the 52-week closing low bid. This means that through the end of August, shares can be purchased at about $0.0003 per share based on the closing low of $0.0006. Even after August, note-holders will be able to convert at $0.0005 through the end of July 2018.

The company has a long history of issuing exciting press releases but then not following through. Until the company cycles through the remaining convertible notes, its share-count will keep soaring, as the millions in debt will turn into literally tens of billions of shares."

https://www.newcannabisventures.com/town-of-nipton-sells-itself-to-american-green-a-silly-penny-stock-company/

But hey, listen to all the pumpers on this board if you want. Or do some actual due diligence and see this company for what it really is and always has been. A shell company to sell shares to insiders and line their own pockets. They don't care about common investors, and will screw you over.