RushNet, Inc. (RSHN) And XYZ Hemp, Inc. (GRPS) Provide Annual Update Concerning Progress and Their Future
BY GlobeNewswire
— 10:31 AM ET 01/24/2019
Palm Coast, FL, Jan. 24, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- RushNet, Inc. ( RSHN) And XYZ Hemp, Inc. (GRPS) began this journey only six months ago, July 2018, with the vision of enhancing shareholder value by engaging in a very focused manner, in a rapidly and exponentially growing and expanding CBD field, still in its infancy, with plenty of room to grow and extraordinary values.
Continuing to depress the value of Hemp and CBD companies is the current set of troublesome and often forbidding legal ambiguities. Yet, we feel that it is the same set of ambiguities that will inevitably pave the way toward explosive future growth and success. Exacerbating this inevitable industry growth is that CBD is indeed the “miracle drug” as first characterized by the medical experts engaged by President Richard Nixon, to which he responded that that is not the conclusion he sought. Still being a Schedule 1 drug, and with society’s continued negative view of cannabis and often reticence to open its mind, and the consequent negativity in public opinion fueled a perfect storm to depress the value of this sector. Yet, it is that same negativity which fosters the great value proposition which will inevitably fuel great future value. It is our view that that storm will soon dissipate. This consequence is particularly enhanced given the incredible benefits to be enjoyed by CBD. And CBD will achieve its unparalleled potential for growth, with bipartisan support in Congress and the entry into the voting population of the younger generations with greater open-mindedness for the value of CBD and its recognition as the “miracle drug” we know it to be. We are confident that the consequent inevitable swing in public opinion will soon result in cannabis no longer being a Schedule 1 drug, and in the not-too-distant future, no longer be federally illegal.
We did not undertake this journey in a conventional manner. The standard practice when taking over a public entity is to engage in a massive reverse stock split and to then issue a substantial number of shares to the incoming group, leaving little or no value to the existing shareholders – the “takeover squeeze out.” That philosophy, however, is the antithesis of our vision for the shareholders. That more conventional approach would have deprived the shareholders of the value to which they have a right and to which they should expect, as a part of our mission and our values which guide us.
Consistent with our mantra, there has been no reverse stock split and there has been no massive dilution. Indeed, while we will need to issue shares in the near future to compensate the dedicated group of individuals we have engaged, it will not be at the expense of the existing shareholders. We can assure the shareholders that any share issuances will be commensurate with the value received by the Company – in other words, we envision that all share issuances will be anti-dilutive by nature.
We remain extremely optimistic about our now four separate pending proposals for federal grant money. Each application has been completed, and is pending approval. The collective amount now pending approaches $200,000,000. The high-powered lobbyist has been retained by us and advised us as to an excellent chance of success, each initiative enjoying bipartisan support in Congress. “This will be a huge benefit for each company, RushNet ( RSHN) and XYZ, and will create the necessary infrastructure to employ all of our business initiatives, to propel our company forward,” said Frank DeAngelo, RushNet’s CEO. Mr. DeAngelo continued, “In each instance, the grant applicant is a subsidiary or a company with which we enjoy a strategic alliance.”
Our business model (RushNet ( RSHN) and XYZ) includes acquiring private companies to become a subsidiary. It also includes, as an alternative to an acquisition, creating a strategic alliance with companies which could bring greater value to each RushNet ( RSHN) and XYZ and its subsidiaries.
We offer unique advantages to each participant in a joint venture type or parent-subsidiary, including, for each:
1. Access to capital.
2. Alternative income in the form of public company stock and the vast array of income tax advantages associated therewith, including the ability to transform ordinary income in the long-term capital gains. Most significantly, we are able to transform income into public company stock value many times the amount of that income. Given the rave currently attending cannabis related stocks and the promise of yet further growth with the inevitable legalization, currently, cannabis stocks trade at approximately 30 times revenues. In other words, a company earning, for example, $10,000,000 of revenues (not net income), would on the average enjoy a market capitalization of $300,000,000! Effectively, we want participating companies to enjoy that market anomaly with us.
3. Access to advanced technologies, including: the most advanced scientific extraction technologies,
the most advanced scientific technologies in order to generate full spectrum products for enhanced market value and with the greatest medicinal impact, including a proprietary nanotization methodology, and through Rhamnolipid Inc., the most advanced scientific methodology for the early detection of mold and/or disease and to efficiently and expeditiously eliminate either, cantilever/drone technology to deliver powerful information on every phase of growth. Rhamnolipid Inc. maintains a unique, patent applied for, environmentally friendly pathogen control technology. Rhamnolipids is already registered with the EPA and FDA as an insecticide. It has also registered “Rhamnowash” with the EPA for use on soil, for remediation. We feel that the recently identified cannabis canker and South America, could already be in the US. The developers of these technologies fear that the cannabis canker is devastating to crops, or at least cannabis crops. We will make available this technology and others for such participating companies.
Another one of our participating companies, TKS Solutions, LLC, creator of the BuddyApp, will make available to its users, which include 700 licensed retail outlets, or dispensaries, products for sale by our participating companies. Included therein, at a reduced pricing for the farmers and processors, is the array of Rhamnolipid products as a prophylactic measure to protect crops from infestation, and additionally, to remediate the soil (through its proprietary remedial measures, including The Rhamnolipid Repellent Disinfectant, patent application number 62768385) from harmful pesticides and thus assure that consumers are not victims of, or poisoned by, such products, so certified by Rhamnolipid, Inc. In addition is the more expensive treatment already infested crops the use of its proprietary artificial intelligence, cantilever and robotics. In other words, Rhamnolipid Inc. will not only be able to remedy infestation, but will also be able to certify (“Rhamnolipid Certified”) the CBD-infused products by testing (including its use of drones) and treating the farmer’s operations and by treating the processing equipment with its proprietary applications. Equally important to the farmer is the protection from crop devastation.
Access to the trucking logistics company – GreatRateFreight, to reduce the cost of transporting product. This, of course, will be more beneficial for future application.
4. Access to the most advanced marketing methodology, including through the BuddyApp. Each is used as a conduit to buyers, customers or branding entrepreneurs seeking a reliable source for quality full spectrum CBD. Participating companies will have all of the benefits of these facilities. In particular, for the Buddy App, we could make this application available to yet additional dispensary users. As users of the BuddyApp, now 700 licensed retail outlets, or dispensaries, access product at a reduced pricing, while the farmers and processors gain access to the retail outlets.
5. Within the confines of the public company, the Participant will have total operational autonomy and total checkbook control of its own operations. It need only provide accounting information on a quarterly basis and must cooperate in the audit process.
6. The Participant will have the right to spinoff and become its own freestanding public company, enjoying the robust shareholder base of the host public company (RushNet ( RSHN) and/or XYZ – which creates a dividend to such host company) companies, but tailored to its own desires. In other words, if nothing else, this becomes a mechanism to become public, if and when it so desires, while leaving those tasks to us until it is ready. And when the Participant is ready and so elects, it will have a very rich shareholder base, much to the benefit of RushNet ( RSHN) and/or XYZ.
7. Specific Compelling Products for Retail Distribution - Further enhancing the relationship with the dispensaries and other distributors, would be several new products created through the joint efforts of RushNet Inc. ( RSHN), XYZ Hemp Inc. and the participating companies. One particular resulting Product would combine: the unique liquors of Rooshine Inc. (most notably, the proprietary ability to enhance the aging process of liquors by reducing the time necessary to create taste occasioned by its processing a mere 10% – for example, requiring only days for the aging equivalence of 20 years), with the proprietary CBD infusion process (recently, successfully demonstrated on several beer products) which does not alter the taste and which facilitates an enhanced efficacy (providing the identical beneficial effect with approximately one tenth the quantity of the CBD infused, the substantially reducing cost vis-à-vis the beneficial effect), with the proprietary formulations as developed by Dr. Goulding and Bruce Bond, DC – Sobriplex CBD, which, among other benefits, is designed to alleviate some of the adverse effects of alcohol consumption, including the minimization of a hangover and the minimization of brain cell depletion. Recognizing the value and the unique qualities of this product, Rooshine Inc., is placing a $1,000,000 purchase order with RushNet Inc. ( RSHN) for future product delivery meeting the above specifications.
8. Additionally, available to participating companies, will be the proprietary new Delivery/ Technology Combination: Dr. Stuart Miller, M.D., CEO of Gold River Productions, Inc. ( GRPS) developed and patented a new delivery system, combined with nanotized CBD. Less CBD is needed for this mode of administration using this combination of technologies. In other words, we feel that it will be demonstrated to be far more efficient see per unit CBD; less cost for desired results and therefore greater profits. Among other applications, this combination of technologies is a rapid administration technology that may well change the way we deal with anxiety attacks, among other medical maladies.
We are still in the process of finalizing contracts with several CBD farming operations. We are also currently in negotiations with three different production companies for product fabrication. Among the more significant considerations provided by this operation is that it is set up to actually make the products and provide the labeling for any products, including products infused with CBD oils. We will be creating a separate and distinct product line featuring broad-spectrum organically produced cannabinoids as an alternative to the single dimensional, less efficacious CBD product offerings which are generally available from competing lines. Typically, the only cannabinoid present in most products is CBD, invariably from the use of CBD isolate. By contrast, we will be positioned to provide a broad spectrum approach to formulation of each product offered--a blend of various cannabinoids for optimum efficacy and bio-availability and product efficacy based on and tailored to each specific product application. We are convinced that CBD isolates, already being synthesized by pharmaceutical companies, relying simply on isolates, will not be sustainable as the synthetic product hits the market in greater supply, albeit at a reduced cost. By contrast, by presenting a broad spectrum approach, CBD, CBDV, CBG, CBC, CBN, CBDA, CBGA etc. (up to a 100 different cannabinoids), at various price points, we open the door to virtually unlimited number of products utilizing “blends” of various cannabinoids for specific applications using a variety of mediums. Together with blended products; superior (uniform) dispersion of cannabinoids within each product. Additionally, we seek a certified organic designation. Those with whom we are negotiating are each uniquely capable of efficiently manufacturing our products to specific requirements and specifications associated with particular ailments and medical maladies, targeted by Dr. Goulding and Dr. Bond. As science (clinical trials) and FDA regulation (labeling, processing, truth in advertising) increasingly impact the industry, those companies having already met proposed quality standards are likely to be much more sustainable than those that lack the same level of testing associated with their products--credibility will become an increasingly important factor in maintaining market share, price points and stock value. As specific scientific data from clinical trials proving positive impacts on health becomes more available, increased opportunity to market an even wider range of products is likely to follow for those with established sophistication and credibility in growing, harvesting, drying, extracting, post-extracting, and marketing organic cannabinoids particularly in the context of a branded, vertically integrated product line---backed by science at every step. Those studies will be conducted, at least in principal part, at Pillars Recovery.
“We are progressing with our hemp/nutraceutical line with the formulations having been structured, sourced and now processed for the market,” said CEO Dr. Stuart Miller. “We are very excited about these products, which will be drastically different and more effective than anything on the market thanks to the thoughtful compilation by Dr. Bond.” Dr. Richard Goulding, Chairman of the Board, stated. “The process of creating our nutraceutical/CBD entities is not as quick as many of our shareholders would prefer. I get countless emails wondering where the products are, worried that our competition is beating us to market, etc. Dr. Bond, one of the most meticulous practitioners I've ever met, is very specific about the types of herbs, the quality of the herbs, ratios, extractions, compilations and handling. Obtaining the right companies to work with us and in exactly the way it should be handled is time consuming. But so worth it. Like our CBD, always organically grown, full spectrum and nanotized where possible, so are the herbal additives. Formulating and compiling the compounds is a key to our future success and we are taking the necessary steps, however painful, to put quality above speed. The good news is, that we are getting much closer, and certainly by the time our SEC filings become effective.”
Consistent with its endeavor to uplist and enhance transparency, the Forms 1-A is nearly complete for each XYZ Hemp Inc. and RushNet Inc. ( RSHN), for filing with the SEC. “We look forward to a very robust year ahead,” said Frank DeAngelo, CEO RushNet. “With the Regulation A process underway, we can proceed with our acquisitions and funding of our line of beverages.”
Western Sierra (WSRA) has reported to us that it has not yet completed the CBD drying process following their harvest. It plans to create products from the CBD and not to sell it wholesale. We have added to our list of possible celebrity endorsements. We will finalize this process to coincide with product launches.
About our other initiatives:
RushNet will continue to report its further progress on the successful implementation of its synergistic acquisition model, of not just the grow operations, but its processing, product integration. RushNet and XYZ Hemp will soon report the progress of its engagement of the prominent DC lobbyist to secure substantial public grant money from Homeland Security, Department of Transportation and FEMA for two initiatives now being prosecuted by its subsidiary, GreatRateFreight, Inc. RushNet reports that the testing of the CBD enhanced blueberry drink of Apple Rush was successful beyond expectations. A full spectrum supercharged beverage has been created. We are pursuing distribution outlets regarding this exciting product.
About RushNet, Inc.: RushNet, Inc. (RSHN) is an edibles and beverage based company with stand-alone products, including most enhanced with CBD. Currently, we have developed 12 Products that will take advantage of the natural and non-GMO grow, pristine mineral water enhancement and natural CBD.
About XYZ Hemp Inc., formerly Gold River Production Services, Inc.: XYZ Hemp is a top of the line medical CBD company. With innovative products targeting specific disease states as supplements, XYZ Hemp, along with RushNet ( RSHN), is poised to take CBD to the next level. With two of its top officials being not only M.D.'s but well-versed in the field of cannabis, a team of scientists and technical experts have joined forces to utilize all that CBD has to offer.
About the joint venture between XYZ Hemp Inc. and RushNet, Inc.: This joint venture is a unique effort to secure all areas of hemp production from cultivation to extraction and retail with an emphasis on unique products and high-quality CBD. RushNet ( RSHN) is more focused on product development, particularly edibles and beverages. XYZ Hemp addresses the more scientific elements of these pursuits, using the same formulations as nutraceuticals. Together, they are able to facilitate the vertical integration envisioned. Both are acquiring and joint venturing with companies in all aspects of the cannabis field as they jointly pursue a full integration cannabis and hemp business model.
Safe Harbor Statement: This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “likely”, “should”, “could”, “would”, “may” or similar words or expressions. Such statements are not a guarantee of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company’s ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company’s operating history and resources, economic, competitive, and equity market conditions.
CONTACT: RushNet
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