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Wednesday, 06/04/2014 1:24:55 PM

Wednesday, June 04, 2014 1:24:55 PM

Post# of 341663
ERBB: Speculating on Spectacular Potential of Zazzz
In just a few days American Green will be hosting several events that should provide clarity and direction regarding recent operational developments. The company is establishing itself as a premiere cannabis enterprise with a seed to sale to smoke approach. American Green has firmly positioned its business from cultivation to distribution and on to consumption of cannabis.

NEVER BEFORE HAS A COMPANY BEEN SO INTEGRATED IN A SINGLE MARKET. In the previous black market of cannabis cultivation, distribution and consumption were all divided into separate sectors; cultivators were rarely involved in the street level distribution. Distributors did not sell products like pipes or other smoking utensils used to consume cannabis.

American Green sells all that;
Cultivation - Jurassic Water Systems (JWS), AG has a joint venture in Colorado to open a growop
Distribution - Along with the growop, AG plans to open an adjoining dispensary, and then there is the Zazzz machine which could be a juggernaut of distribution
Consumption - Zazzz vapor pens. LET ME BE THE FIRST TO TELL YOU THAT THE ZAZZZ BRAND VAPOR PENS ARE HERE!!!!! I don't want to steal any thunder from Stephen, but I can 100%, without hesitation say that a line of Zazzz vapor pens are soon to it the market. How do I know? I had one in my hand a second ago and took a morning rip. I could give the model type and specs but thats for Stephen and the ERBB crew to disclose.

I will repeat it again NEVER BEFORE HAS A COMPANY BEEN SO VERTICALLY INTEGRATED WITHIN AN INDUSTRY. This is equivalent to Coca Cola owning the sugar plantations (more like corn for high fructose corn syrup) as well as owning the bottling, trucking, vending machines and even straw/cup makers.

And now the fun begins. With all this development in place, we can start speculating about numbers. Obviously since this is such a nascent industry, the revenue figures are pure speculation.

Lets start with the big picture, the overall cannabis market. While everyone complains about "transparency" in the MJ OTC and pink stocks, American Green is an open book compared to the cannabis black market. It is difficult to truly measure the size of the cannabis industry because previously illegal activity of moving the products were not reported but here is what we do know;

In the last 80 years of cannabis prohibition the demand has been so great people are willing kill and die in search of profit. The demand for cannabis is so great that 80 years later the US Government is bowing to the will of the citizen's cries for legalization. Think about that for a moment, think about the significance of the last 2 sentences.

It is estimated in the United States alone the cannabis markets generate between $20-100 billion annually. Again, those figures are hard to fully realize due to the nature of the blackened market but here is a telling fact; for the past 20 years California's number one cash crop is cannabis. Even before CA legalized medical marijuana, the state's largest crop was an ILLEGAL product.

So where does ERBB, American Green and Zazzz fit into that market?

Zazzz
Right now there will be 4 machines placed at dispensaries in 3 different states. For those who do not know, California already has basic vending machines in place. Check Leafly or Weedmaps for Zen Healing in West Hollywood to see pictures of the 2 simple, coil release, alphanumeric keypad machines at the shop and scroll down to read comments about how much customers like the machines, which were so popular the shop got a second machine.

Shearin has stated the goal is to have 1000 machines operating so I'm going to use that number for breaking down a revenue structure. He has also stated the lease will be priced at $100/month or so which will also be factored in.

So with 1000 machines at $100/month that brings in $1.2m per annum.
But the numbers get real fun when you estimate revenue sharing with dispensaries. At the Zen Healing dispensary mentioned above, the machines are filled with $30-100 items and the shop's one machine was so popular, they added a second machine. I would estimated each machine pulls in about $1000/per day.

Based on $1000/per day per machine, if ERBB could command only 10% of the sales, the revenues from Zazzz could be ENORMOUS. A single Zazzz machine could bring in as much as $3000/month for a total of $36000 annually per machine. At 1000 machines x $36000 that could bring in $36m per year. Keep in mind that is ONLY 10%. Most service markups are around 20% so it is possible Zazzz could be a $100m revenue generator.

And lets not forget the potential to push OneBode products through Zazzz machines, exposing the OneBode goods to a whole new market. There is also potential to sell the Zazzz vapor pens mentioned above, as well as other Zazzz branded products via the Zazzz machine, possibly increasing revenues.

Intangibles
Jurassic Water System - This could be enormous. With a $1.17m order already, JWS could very easily become a massive revenue generator because the application is not limited to the cannabis industry. Any crop using irrigation, WHICH IS EVERY PLANT ON OUR PLANET, could benefit from oxygenated water. If you have ever grown hydroponics, oxygen regulation in the water is essential to strong root growth.

American Green Websites - Ad revenues, product sales, and other revenues could be a big part of ERBB's earnings.

OneBode - The health supplements market is massive. MASSIVE. I spend about $100 per month on supplements and vitamins.

Seriously folks, I could go on for days but I have things to do. If you've read this far, I've saved the best for last.
ERBB COULD EASILY COMMAND A ONE BILLION DOLLAR PLUS MARKET CAP. If competitors like MD8X were at one point valued at $900m with their whack setups, ERBB could be twice that considering American Green's operations vastly exceed just the Zazzz vending machines.

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