Full report for visit to ERBB on Monday, January 27, 2014
Here is my report about my ERBB visit -- great news!
Okay, ladies and gentlemen. I finally arrived back home from my travel in the Phoenix area and now have time to report on my visit to the ERBB offices.
PART 1 (I am writing as quickly as possible and possibly will revise combine the parts later and maybe a total compilation can be stickied)
First of all, I have been trying to find the one MJ stock that I feel has the potential to go a long way and not fizzle or turn into a scam. The idea of a vending machine for cannabis products intrigued me quite a bit and I could see the potential in this MJ revolution happening before our eyes. I sold another MJ stock and went into this one after some additional DD and after hearing about the progress of the machine being brought to market.
I first emailed David Gwyther late Thursday night the 23rd to let him know that I would be stopping by the office on Warner Rd. in Tempe on Friday the 24th or Monday the 27th. I never received an email back before I left on Friday, and I wasn't even sure that David would be there. My departure was delayed and, unfortunately, I arrived after closing time but took some pics and posted them at the Ihub board. On Saturday, the 25th, I received an email from David inviting me to stop by Monday and to talk with him.
I left Tucson on Monday morning and traveled to Phoenix and went straight to the ERBB office. I arrived at 11:30 AM as planned.
I was greeted at the front by a nice young woman (who I think is the daughter of Peter Jacobs). I was greeted by Stephen Shearin, who then directed me to Peter Jacobs. Peter was informed by David Gwyther that I would be stopping by, so they were expecting me. David was flying in from Portland later in the afternoon, but I couldn't stick around. Peter provided all the info needed.
Before I get into the details, I have to say that this group is very nice and hard-working and I was truly impressed. It ends up that Peter and David have known each other for 20 years or more from their time in Oregon. Matter of fact, I believe most of the principals in the business have Oregon roots, and because I lived there before moving to Arizona, we had some things in common to talk about. David Gwyther lives in Portland and flies back and forth to Phoenix all the time.
Now I will expound on details. There are many and I will post on additional pages. Some things I wrote down, some I draw from memory.
Peter Jacobs is the consultant to David Gwyther and is the president of PanPacific International (which deals with Bitcoins). He actually was in the vending business many years before, founding a company that provided special vending for truckers all over the USA. From what I gather, Peter was semi-retired, but David Gwyther brought him on as chief consultant for the vending machines and PR. Peter spent the better of almost an hour with me. I was told a lot of things -- some information I can reveal, some info I have to legally be careful about talking about, and some info I am not at liberty to divulge.
Peter told me many things about the vending part of the business. The ERBB machine differs from Medbox in a significant way. Medbox uses fingerprint verification and can only dispense at medical facilities and dispensaries. The ZAZZZ machine has been developed with the highest security standards, and this includes 24-hour video monitoring. You see, fingerprint scanning can have errors and the system can be manipulated. Peter is very experienced with vending and verification and explained in detail how security is critical and will be scrutinized by the FEDS and the States with regards to vending. ERBB has made a machine that provides adult and medical verification for not only cannabis products, but also for other products that need adult verification (cigarettes, cigars and other misc products can also be dispensed) and 24-hour surveillance is part of the verification. Not only does this provide the most secure verification -- using both the medical card scan, or state ID plus video verification, but also guards against anyone trying to rob or tamper with the machine. The machine also is designed to dispense the MMJ as per the allowed amounts. Let's say you are allowed 5 ounces a month and you go and purchase 2.5 ounces. The software, of course, tracks all the purchases and you will only be allowed to purchase whatever balance of MMJ you have allotted for that time period. They are assembling a video monitoring center right now for the surveillance. They lease the machines to dispensaries and receive a commission/processing fee for all products dispensed. They make enough money with these machines to more than afford the cost of surveillance security. The bottom line is that a dispensary can lease the machines and actually place them wherever they want or are asked to. This means that if a dispenary contracts with a nightclub for a machine, it can legally be placed there. Can you imagine having these machines at the many nightclubs/bars across the nation? How about Las Vegas!
Their initial idea was to begin entry into Colorado, but the PARC dispensary wanted to obtain a machine as soon as possible. Just a note -- the PARC dispensary is very close to the campus of ASU, which is one of the biggest party campuses in the USA! Anyway, Arizona is probably the strictest in terms of regulations for vending MMJ, so getting the software to correctly work is critical. David and company knows that everyone will be watching -- the State, the FEDS, investors, etc. They can't be perfect, but they don't want to leave room for error. However, from what I gathered from my meet at the office, February is going to be a big month. I believe -- and I can't quote or guarantee -- that there will be a big roll-out of machines happening in Colorado. That is where the big money begins. One of the questions I was asked to relay to ERBB was how many machines are initially planned to be manufactured and placed on the first run. Answer: 1000. I think that 50 to 100 could begin to be placed in Colorado in the next 60 days. That's my opinion based on info. When that happens, watch out!
But dig this ... the ZAZZZ machine is the first and only MJ dispenser that will work with Bitcoin!!! Peter told me that the machines themselves will be revolutionary and I have no doubt that investment money will pour into ERBB, but Peter told me that when Bitcoin is allowed for purchase then we will see a huge wave of money pouring in that will be hard to believe! But here is more info ... ERBB is currently hooking up Bitcoin processing for the machines as I write! Stehen Shearin is the guy who makes everything work. While I was in conference with Peter, Stephen cam over to discuss the Bitcoin processing with Peter. They have narrowed down the processing to two choices. I actually discussed the choices with Stephen because I signed up for a Bitcoin account with one of his two finalists. The one I signed up with is the easiest to use and is used by many individuals. The other choice is focused more on business processing. It was cool to discuss that with Stephen. It's real. They are adding Bitcoin processing and it will likely be employed with the first machines.
Speaking of the machines, they are on the way. Software is done. It's placement time! They will issue a PR when things are ready to roll.
More info next post. Wanted to get this much out now while everyone is waiting. I will provide more info regarding trademarks, share structure/float and share price, networking, other products, etc.
Chessman
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PART 2
Continuing from my meeting at the ERBB offices ...
I want to keep relaying more info to all of you, but I have to inject a conversation I had with Peter Jacobs about the share structure and price and the shorting going on.
First, David Gwyther is not interested at all in a reverse split or dilution. Any additional shares being issued are debentures and have to be held for a year before conversion. So enough with the dilution BS.
David actually worked for a large security firm/broker years ago and knows the stock market. Peter Jacobs is also quite experienced. They are aware of the stock price daily and are also aware of the impatient short term investors and traders. They have some big long-term investors and wish that there were more medium and long term investors right now. I did remark to David in an email that I had liquidated one MJ stock to go into ERBB but in doing so I lost out on a rise that would have netted me 10,000 dollars or more. He stated "I think you will find that the opportunity in ERBB for medium and long term shareholders is on parity. However, the short term players will soon see that share movement among the MMJ companies is hard to time." Peter told me that a reverse split is only feasible if the stock price is high and the stock can really support it. Otherwise, it makes no sense.
David does things on the up and up. If he has to sell shares, he files the proper forms. A lot of CEOs don't. David has integrity. Recently, he had to sell some shares for a personal matter that I cannot talk about. If you knew the reason, you would do the same. Nothing to worry about.
We also talked about the share price. Peter told me that three hedge funds are shorting ERBB -- NITE, VNDM and BKMM. They don't care at what price they can short at, just that they can incite panic with a price drop. Peter told me that it is illegal for the hedge funds to communicate with each other, so they have to send signals for mutual cooperation. It isn't a myth about small sells that send code. It's real. I saw this yesterday morning with ERBB. if the bid and ask are tight, that's normal trading. When the bid drops too much and on small amounts, that's a short. The shares of ERBB are not that available to the big funds, so they are in need of shares to short. They will incite panic, get the price to drop, then cover. Rinse and repeat every day. Peter told me that to keep the share price up and rising, we need to keep our shares and hit the ask. No doubt, it is always good to have bid support, but it has to be tight. None of this stuff that NITE is doing. The spreads that you see with ERBB sometimes are not tight and we need to keep the share price up so don't sell into the bid! Hold on to those shares, but if you have to sell, then sell at the ask!! NITE will test us today. Watch them.
More info on the way ...
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PART 3
Continuing from my meeting at the ERBB offices ...
I asked about the IP/trademark situation. Without getting into specifics, Peter indicated that about 95% of everything is done regarding patents and trademarks. A few small things are pending.
The machine is supposed to be called ZAZZZ machine and is trademarked.
I asked about joint ventures. They will do them when the law allows it. However, Peter touched on the recent rumors about different public companies trying to merge (like the rumor about FITX and PHOT). Peter said it involves 500 pages or more of legal paperwork and a year at least in time so a lot of these rumors are just that -- rumors.
Speaking of joint ... did you all know that one of the only three owners/directors of High Times -- Colleen Manly -- is on the Board of Directors of Altitude Organic Corporation? Yessir, it's true. I gathered that High Times will be cooperating with Tranzbyte in the future, maybe regarding products in the ZAZZZ machines.
Someone asked about the role of Stephen Shearin in the future. He will become the COO of Tranzbyte.
Chessman
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PART 4 -- Some additional info
Just got back to the computer and feel good that our stock is holding up well. It's starting to behave like a big board stock -- forming a base after gapping up and getting ready to take off in the coming days.
Some tidbits from my visit to ERBB:
The machines are all programmed for each state. Each state has it's own regulations with regards to dispensing and verification. Arizona is strict, Colorado is less. I get the feeling that once the first batch of machines goes out to locations for a Colorado dispensary, there will be a push to blanket Colorado with the machines since the software and programming will be done and working for that state. Besides, once one dispensary has one, the rest will follow quickly. Then, I think, Washington and Arizona will next. Just my opinion.
Someone asked about moving the company to the big boards. David knows about the stock market and how to get the company on a higher exchange. I will ask him directly about it next time I visit.
I may have mentioned, and many of you already know, OneBode, Tranzbyte, Altitude Organic Corporation, Pan Pacific, etc. work together. While I was there, Peter Jacobs was pointing out that a well-known basketball player was signing on for, I believe, promoting something regarding Altitude Organic Corporation or OneBode. I was so focused on the machine issue that I really didn't catch it all exactly. There was also a small hint that something big is brewing in the agriculture sector that this company is involved in that will be an incredible development and truly affect the industry. Could have something to do with the growing of the plants. I am not worrying about it, though. This company is working hard to get their products done, done correctly and making something unique and progressive. They are cutting edge and you can see and sense it in their personalities.
I am very comfortable with my investment now. It pays to check and verify that a company is real and that the principals have integrity and are working hard to achieve their goals.
Kindly to all,
Chessman
