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Feel the same way. I emailed this weekend, haven't heard back.
I don't understand why he wouldn't want to address the share structure. It's ridiculous to think it's no big deal how it currently is, then try to justify it by comparing market caps of other MJ companies. I hope you continue to email him and he eventually changes his mind. I love the potential of this company. But I honestly can't see myself staying invested much longer if this issue isn't addressed. Thanks for your post Joe!
SHARE STRUCTURE ADDRESSED in emails from GREENTIME (BOTH EMAILS)
PER ZRZH, NO CHANGE TO SHARE STRUCTURE, PER EMAIL BELOW:
On Jan 28, 2017, at 8:14 PM,
wrote:
Don,
Again, nice job with the most recent interview on Money TV. For investors such as myself, we are very excited to see the revenues coming in. We are grateful be invested in a company that is seeking to move the stock onto the list of top 5 of MJ related stocks, and plans on doing it by releasing results-not fluff PR’s. However, many of us are gravely concerned that the current share structure needs to be reduced, and reduced quickly. Given the current share structure, we feel the stock is topped out due to market cap being WAY TOO HIGH for the income presented.
Share Structure
Market Value1 $222,986,390 a/o Jan 27, 2017
Authorized Shares 10,000,000,000 a/o Jun 30, 2016
Outstanding Shares 5,574,659,739 a/o Nov 01, 2016
-Restricted Not Available
-Unrestricted Not Available
Held at DTC Not Available
Float 1,383,336,622 a/o Nov 01, 2016
Par Value 0.00001
As you can see above, the market cap, A/S and OS are outrageous and will kill any chance of attracting any savvy investors. So, please get the share structure reduced and PR the shareholders when you have filed and again once its completed. You will then put yourself in a position of growing shareholder value, as of right now you are topped out due to market cap. Moreover, if you don’t do something about share structure, many of the existing shareholders will take exit and move to investments with a more favorable share structure.
Thanks for listening!
Respectfully,
REPLY FROM ZRZH:
We appreciate your concern. We addressed this in our last money TV interview by outlining the company's growth plans. The smart greenhouse market is estimated at 6 billion alone. If Zerez/ next gen simply capture 10 percent of that market ( which we will easily do) thats $600 million in annual revenue.
Second, our automated proprietary control software is ubiquitous to ANY greenhouse company and we are pursuing license deals- which means wholesale revenues and retail subscriptions.
Third, acquiring additional assets and businesses will strengthen the balance sheet.
Finally one should not make assumptions about the holdings of the balance of the outstanding shares ( difference between the float and outstanding shares ). Remember , as officers we are not able to sell any restricted stock for at least 12 months from our taking over the company. Therefore, it's obviously In our best personal interest as well as that of the shareholders to maximize the company's potential.
In short, we are confident that our company's share structure is adequate at this time and that the value of our company is completely supported by our current and future business plan implementation. If anything should change we will stay true to our duty to maximize shareholder value and take whatever action is necessary to do so.
Thank you for your inquiry.
Second email response from Don:
On Jan 30, 2017, at 11:44 AM,
wrote:
Don,
Most of the folks that are invested right now have made an assumption that you would clean up the share structure you inherited from the reverse merger. It’s pretty common and is about the easiest way to increase share price. I won’t disagree with you on market cap. Eventually, it will matter very much, as the elite MJ stocks will be judged by fundamentals, float size, O/S, & AS. Fundamentally, ZRZH is separating itself from the non performers. However, with the current share structure is one of the largest I’ve ever seen and I don’t believe you will sustain the current pps and will see a ceiling in pps approaching fast.
Look at the Canadian MJ stocks, as they are a few years ahead of us-due to a more liberal political environment. Take a look Canopy growth, they are MJ stock number 1 and have a 930 million market cap that is based on 2 year projected forward earnings of 145 million. That’s where we are headed in a few years.
My point is that ZRZH has an enormous A/S & O/S. Let’s just say you have a target of being a 500,000 million dollar company. Based on the current share structure, that would put your price per share at about 0.08. Now imagine you are an investor that wants to invest large in ZRZH in their infancy, because they sold 1.4 million in the first 90 days, even though $900,000 is on a long term lease option and income only drizzles in. Why would they, if at best they could see their investment double? It’s not enough incentive for the MJ sector Don and you should recognize that. So, you will have a hard time attracting investors from the current price point higher, because there are myriad MJ plays that have more potential of a higher return.
Now, if you reduce your share structure by half and play the above scenario, you could expect a 0.16 pps for a 500 million market cap. Ask yourself, how much easier will it be to attract or KEEP investors from
0.04-0.16 than from 0.04-0.08? Who wants to invest or stay invested in a start-up with a max potential of 100% return?
You either want higher share price potential from less shares or lower share price potential and your current share structure. It’s up to you, because market cap does matter-even in MJ sector. It’s really simple supply and demand.
Thanks for your response and have a wonderful afternoon. If you are open to a reduction, please let me know-as I would love to stay invested in ZRZH!
Respectfully,
RESPONSE:
Typically I do not address these questions, but since I did here is another thought for you. Look at MJNA, CBIS, GRNH. Their annual reported revenues are at most 250k, have very little cash, and all lose money. Granted their outstanding shares are less, but o must point out 1.4 million in revenue on 75 days is far from the 6 years those companies have worked just to continue to lose money and have in my opinion unjustified market capitalizations.
Don Smith
Definitely correct. Also note they have sold double that number of greenhouses to date. Go back and listen to the last MoneyTV show interview. They are blowing sales up and they are just getting started.
I am long and adding when I can at this PPS. Been in since .004.
The name change will get the eyes and attention of new investors no matter what the political view is on MJ. California alone is a key market and they are capitalizing on it as we sit and add shares.
These guys have been working on this business plan for at least 8 years. They didn't jump in over night. They have the resources and the customers.
All we need is more exposure and we will fly with the fin reports.
GLTY
Great Point. Sold, Manufactured and Installed. All in 6 months. I don't know much, but I believe companies that start the way ZRZH approach business based on a clear set goals and a strategy to hit them.
I'm very optimistic and actually enjoying the opportunity to pick up shares this low.
Where will ZRZH price per share be with new ticker for SMART Cannabis and millions of dollars in Revenue next quarter???
My thoughts are much higher than 4 pennies...
Numbers don't lie. 25 Smart Greenhouses delivered with a total of 81,850 Sq Ft. Very impressive in under 6 months. On the front page of their website.
Your sticky needs to stay though. It's important! Good luck to you!
Removing myself as mod here, best of luck to all!
Ty everyone who contributed!
One of the main problems I see is, the current ZRZH symbol does not reflect AT ALL that this a cannabis stock and so it stays under the radar and goes unnoticed with so many weed stocks out there. I believe the new symbol will help a lot and hopefully it will come soon.
The share structure is not very good but I have seen worse. I will still take revenues and profits now and worry about the share structure down the road.
That's cool. I'll jump back in when interest picks up and volume follows. Congrats on seeing a nice gain. Way too many shares outstanding and both owners each have a billion. Hopefully they figure it out. They had a nice quarterly report and obviously have things headed in the right direction. That report would have brought new investors in but they are turned off by the crazy large float. I contacted them about my concerns but haven't heard back. They were pretty clear in their position in the yellow stickie.
This is a long term play. I'm prepared to wait this one out 3-5 years when I believe we could see a dollar. If they keep pumping out profitable quarterly reports, then people will start taking notice. Maybe they have plans to buy out other companies in the future, who knows but this is real company, producing real product and real profits. They don't pump the stock, they just keep putting out greenhouses. I can't wait to see the next Q report. Remember, this only got going last Nov so imagine two years from now. Even after today's drop I'm still up 135% on my investment and in
my opinion, we're just getting started.
Probably right. I'm getting out until they get it fixed. I should have done a bit more DD on this one. GLTU. I'll jump back in when they make it right for shareholders.
I believe they're putting all there energy in product growth, building a brand and the name change. Hopefully the share structure will be addressed in the future.
It's a long term play for now but I'm perfectly fine with it. The share price will go up.
Or, a significant share reduction. They have to be smart enough to figure this out.
Will only see a substantial stock increase when profits reach 50 to 100 million.
Please get back to ZRZH. The sector will be fruitful with news like always.
Bud you're preaching to the choir I'm well aware how this sector runs. At this point we'll be lucky if we get a little ihub money here and there. For the real money flow we need sector news to get this moving
This is a greenhouse stock that focuses on growing plants. MJ happens to be the most profitable and they dedicated their technology to help the MJ plants grow.
The sector does not need to be pumped for this stock to grow is what I am saying. They have positive financials and are growing and doing more things then any other "MJ company" has done.
ZRZH
Bro if he wants to be a dick and make it tough for Mj he can do just that.
This is a Mj stock period if we are gonna get any kind of real money flow We need positive sector news.
No he has no say in that. It is up to the states already.
No doubt just hope he flat out comes out and says he will leave it up the the states
That is very untrue. This stock has nothing to do with national MJ. They build greenhouses mainly for MJ dispensaries and can build them in all states if they do choose. States run their MJ laws not the president. Federal laws are different from state to state.
ZRZH
So you agree his views are for MJ. There are more important issues on the table then MJ. I'm fine with the president focusing on those.
I'm talking about him saying he supporting medical he hasn't given us a direction yet and sessions is leaving a dark cloud over us at the moment. So until trump gives us a direction we will sit here like this for the whole sector. Unless a huge breakthrough comes out in a study etc
He only talked about it during his campaign. Never said anything yet since he was elected
Never said what? I'm confused to what you are saying.
He said it in his campaign never said it after getting elected and he's been flip flopping so much no one feels safe with what's been said in the past
My own opinion, I think once they start getting things going with the new name and keep having consistent revenues, they will buy shares back. But they haven't mentioned it before. Seems like they like to keep it simple and do only what they can for that time being, which is smart to not overload promises.
All is good here except the terrible share structure. Great management, making a profit and growing. I wrote an email asking that they buy back some shares. The O/S is scaring people away and without volume this doesn't move. Don and John have so many shares I wonder if they really care what the stock price does. I'm a long, so not bashing but wanting them to help shareholders and themselves. If you feel the same please let them know. It's their only issue. Sorry for the rant but with their performance in Q1 this stock should be moving up.
Trump administration is for medical MJ. He said while he was running. Not sure if he is for recreational piece of MJ though. Although that aside ZRZH is ahead of the game in California. The states that are in the MJ game aren't going to back out of it, it's too much of a revenue boost for each state.
ZRZH doesn't grow MJ they provide the structures to insure the safety of the growth. Their automated systems are one of a kind and come with each greenhouse. People can customize it to their liking. ZRZH has a niche.
Quietly loading when I can once a week.
Agreed bro! It will all come to a light soon. Sessions and Trump have a dark cloud over the sector right now. If anything positive comes out of the Trump administration this sector will blow up bigger than it did in 2014. Mark my word. Lots of positive news has been going over looked in this sector cause of those two clowns right now. Fingers crossed for something good to come soon
How the hell are more people not eyeing this? Back to back profitable quarters and it appears Q2 will shape up even bigger. Terrific product!
No pump or false hype with this ticker! Share structure could be better but I will take real revs and profits any day.
They need to hire an IR firm to generate investor awareness. Solid play here that is virtually invisible to the investment community. And, a share buy back would help a ton!
Zerez Holdings Corporation rings in 420 with early Q1 2017 Earnings Report and Proposed Name Change to SMART Cannabis, Inc. http://on.mktw.net/2oQfvhL
Nvm, just didn't see it, they did
They will probably PR tomorrow or Monday
The only thing this lacks is awareness. Let's own this and get the word out. This is a very solid greenhouse play.
The company retired approximately 400,000,000 shares of its common stock and 400,000 shares of its
preferred stock. This information has been updated and posted by OTCMARKETS.COM.
When was this?
They need to change the name asap! nobody is buying zerez holdings lol
$ZRZH$
So far ZRZH has done everything they have said they are going to achieve. Let's see that name change next!
$ZRZH
NEWS!! 4/20
SACRAMENTO, Calif., April 20, 2017 /PRNewswire/ — Zerez Holdings Corporation, (OTC PINK: ZRZH) marked the annual 420 celebration with the early-release of its first quarter 2017 earnings report. The company reported gross revenues for the period January 1 through March 31, 2017 of $544,467; an astounding 148% increase over its fourth quarter 2016. Net profits for the period were $281,650, or 51.7% net profit, before allowance for income taxes.
According to Zerez President John Taylor, “We have now posted back to back quarters that show exponential revenue and bottom line profits. I do not believe any other company in the cannabis and organic agriculture marketplace has ever shown results like this in less than 180 days while self-financing company growth. The second quarter looks very strong and we are confident we will surpass our first quarter performance and just keep on going.”
Zerez Vice President Don Smith added, “We are astounded by how the word continues to organically spread about our company. If any investor, analyst, or media channel does not know who Zerez and Next Gen are, they will soon. We look forward to the pending approval of our proposed name change to SMART Cannabis, Inc., which will more accurately represent the company’s current target market. Undoubtedly, it will improve our visibility and leadership among the industry-leading cannabis technology companies.”
Zerez subsidiary, Next Generation Farming Inc., recently established its own key-component manufacturing line and has successfully delivered, and installed, truckloads of greenhouses from those operations. John Taylor commented, “Our primary frustration is locating reliable suppliers that can deliver components on time. We have taken this task into our own hands by collaborating with outside resourcing to place hundreds of thousands of dollars in orders, made to our own unique specifications, while maintaining a reduced cost factor bettering any of our competitor’s pricing. We pioneered this strategy several years ago in our hydroponics operations; as a result, we have a solid working relationship in place that we are confident will enable us to keep up with our sales pipeline.”
About Zerez Holdings:
Zerez Holdings Corporation, (OTC PINK: ZRZH) is a public equity corporation focused on the advanced agriculture and cannabis industries with plans to grow through acquisition, strategic alliances, and proprietary intellectual property. The company’s wholly owned subsidiary Next Generation Farming Inc. provides turnkey commercial greenhouses and automation systems that improve yields and decrease water consumption for cultivators of organic food and cannabis crops. The company’s websites are http://zerezholdings.comand http://nextgen.farm.
Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company’s public announcements.
Contact:
Zerez Holdings Corporation
Don Smith, Vice President
(424) 732-7646
https://zerezholdings.com/zerez-holdings-corporation-rings-420-early-q1-2017-earnings-report-proposed-name-change-smart-cannabis-inc/
We don't need a nice PR we have a Nice Q1 Financials!
Zerez Holdings Corporation rings in 420 with early Q1 2017 Earnings Report and Proposed Name Change to SMART Cannabis, Inc. http://www.bloomberg.com/news/.html
We should nice pr happy 420 to everyone. $ZRZH
Q1 2017 Revenues: $544,466.90
Page 11.
https://www.otcmarkets.com/ajax/showFinancialReportById.pdf?id=169925
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"How does a self-funded company go from a start-up to a profitable, self-sustaining business in 3 months?
The answer dates back to post-World War II Japan. Faced with limited cash, space and natural resources, Japanese manufacturers adopted a different approach. They made smaller factories and house only the raw materials needed for the day's production. Combined with a focus on eliminating waste, a strategy later known as Just-in-Time manufacturing was born.
In the late 1940's, Toyota adopted this strategy into it's Toyota Production System. Using the efficiency of just-in-time manufacturing and focusing on removing wasteful elements in manufacturing, Toyota grew from a small auto company to the world's largest automaker. In the process, they paved the way for what is now called Lean Manufacturing.
Nobody knows more about first-hand implementation of Lean Manufacturing than SmartCannabis President, John Taylor. Interested in how manufacturing companies were improving their operations, Taylor travelled to Europe several times and studied the operations at one of the world's largest machine tool providers, the Trumpf Group.
The Trumpf Group created very high quality tools, but with over 10,000 employee and no systemized production system, they faced delays and excess inventories. Trumpf began implementing the principles of lean manufacturing and it was dubbed the Synchro production system. Taylor watched as department after department, plant after plant was transformed into a clockwork of precision.
In 2007, John applied his first-hand knowledge to help local manufacturer Taylor Wings survive the sharp economic downturn. Lean-manufacturing principles allowed Taylor Wings to operate like an orchestra, in perfect synchronization.
Fast forward nearly 10-years and trend toward greenhouse cultivation was an industry trend he couldn't ignore. He knew he draw on his experience, build a better greenhouse and a better greenhouse company. With use of his synchro knowledge he quickly developed Just in Time Systems geared specifically for commercial Cannabis production with acknowledged global Lean Standards. Not long after, Next Generation Farming was born."
Source: https://smartcannabis.com/next-generation-farming/Volume | |
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