American Green Inc (ERBB)

[Pennystomper55]

Depending on what you believe, American Green has supposedly “completed” the purchase of Nipton, CA and what has followed is nothing short of hilarity mixed with very little excitement despite international press coverage. Due diligence is being performed daily by amateurs and now professionals have joined the fray. The most credible reports show a repeated pattern of misleading information provided by American Green and the less credible accounts provide some absolutely hilarious, albeit somewhat sad claims being made in pathetic efforts to pump of ERBB share price

Nipton Fallout

For those who do not know, in modern times Nipton was first put on the map not by American Green but by the video game Fallout, specifically the 4th game in the series called New Vegas. The basic premise of the game involves a post-apocalyptic world where the desolation of Nipton provides refuge from nuclear fallout across the globe. Modeled after the real town of Nipton, the game version is similar to the current real-world environment; isolation, desolation and sand, lots of sand.

And that’s about where the similarities end. Yet this has not stopped some of the clueless ERBB pumpers from making the grave mistake of confusing the Fallout video game with real-life in a pathetic attempt to spin more yarns about Nipton. Yesterday, one of ERBB’s most vocal and oblivious social media pumpers made the uproarious, yet grave mistake of conflating a “map” from the video game with a real map of Nipton. This fool actually boasted about the “tourist attractions” surrounding the real-world Nipton based upon the video game map.

Here is the post touting “the many tourist attractions around Nipton”:



http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134961689

And here is the video game map:



http://fallout.wikia.com/wiki/Nipton

“Wow just wow” is right! Do you see any similarities or issues? One dead give would be the icon in the bottom right corner for the “crashed vertibird”.

At first it seems funny that someone would be so clueless as to not know the difference between real-world and video games but this mistake is indicative of the overall cluelessness of those putting forth “positive due diligence” about American Green. Forget the fact this social media user has been so wrong for years while pumping the many failed American Green claims about their business. Forget the facts they can’t read a balance sheet to see that most of the American Green’s convertible debt monies go straight into pockets of ERBB insiders via salary, consulting fees or legal expenses. This person in so inept, they can’t separate fact from fiction.

Alas, this is the quality of stock promotion seen on Investor’s Hub. Whereas the credible due diligence on iHub is excellent, digging up all sorts of dirt on the Nipton “purchase” and much more, the incredible and unjustified promotion of ERBB on that site is nothing short of deplorable. It is one thing to hope or dream about what ERBB could achieve but it is so much worse what users like Rat Fink are doing, both knowingly and unwittingly.

While the boneheaded mistake is laughable, it is indicative of a large pattern of misinformation being spread about ERBB by the company itself and promoters of the stock, especially on social media sites. There are several people who have performed top-notch due diligence on American Green, but there are equally as many offering truly bizarre, idiotic or incredulous analysis. You can choose which sources to believe but it seems pretty stupid to trust someone who cannot tell the difference between the real world and a video game portrayal of Nipton. Maybe the best suggestion for Nipton so far was to build a town based on the Fallout video game since they can’t grow or sell weed in the town!

Beyond Nipton Fallout

Credible due diligence has once again exposed American Green for the many misleading statements recently made by company officers. In early August, American Green released the bombshell announcement regarding the Nipton “purchase” with intent to convert the ghost town into a “premiere cannabis destination”. Shortly thereafter it was uncovered that the company had not actually “purchased” Nipton at the time but they had merely opened escrow on the property. Subsequent information was unearthed about cannabis prohibition in San Bernadino County, the same county where Nipton is located. Of course, in typical American Green form, this news was not released by the company itself but it was dug up by the due diligence of the credible few who have followed the company for some time.

The result of San Bernadino County’s cannabis prohibition is that American Green or any other company cannot legally grow or sell cannabis in Nipton. So much for developing the “premiere cannabis community” anytime soon (if ever). In order for the prohibitive laws to change, American Green would need overcome so enormous hurdles, which based on this company’s history, will never happen. Nipton would need to incorporate, requiring 10,000 full-time residents and 500 registered voters just to get the process going. Yeah, that’s not happening. The only hope would be to lobby the county for some sort of exemption and that’s probably not happening either.

To make matters worse, as noted by the Desert Sun (see link below), American Green has yet to contact any county representatives. Establishing a rapport with San Bernadino County officials should be the first order of business. Instead American Green posts nonsensical social media and far-fetched press releases.

So, what does American Green do now after such a massive faceplant? As American Green’s former CEO and current “project manager” for the Nipton deal Stephen Shearin likes to say, the company will “pivot” but it’s hard to perform a spin move when your knees have been taken out. Doing Shearin’s bidding to cover for the misleading claims about developing a pot destination town is Michael Rosati who has recently disclosed, and further confirmed that American Green will have to explore non-cannabis options in their attempt to develop the “premier cannabis community”.

During an interview with the Desert Sun, Rosati offered up some truly underwhelming alternatives like “stargazing, mountain biking and exploring old mines”. Here is the link to the Desert Sun article:

http://www.desertsun.com/story/money/business/2017/09/26/nipton-california-marijuana-american-green/569319001/

It is worth noting that the Desert Sun has also provided some extremely credible information regarding the Nipton deal, exploring both the negative and positive aspects of the purchase. Unlike many other heavily circulated domestic and international news outlets that just re-circulate pressers about American Green’s Nipton purchase, the Desert Sun has fulfilled their journalistic duty by seeking out follow up information about the deal. In the article linked above, Rosati tries to spin the prohibition fallout with a positive angle but there is no good way to spin this into anything other than the disaster is has become. The fact that American Green cannot grow or sell cannabis in Nipton is nothing short of a deal-breaker.

Those who have purchased ERBB under the assumption that American Green will convert Nipton into a pot haven should be sorely disappointed and not just because ERBB share price has retraced, leaving many new shareholders underwater. A “premiere cannabis destination” where visitors cannot access cannabis, instead having to bring their own THC products, is preposterous considering the ease access to cannabis all over California and Nevada, as well as the access to quality hiking, biking and other outdoor activities that do not require driving to an isolated desert town. Oh yeah, and the same activities and THC products are also available in Washington, Oregon, Colorado and Alaska. This is by no means meant to disparage Nipton as I am sure it provides natural wonder and soul affirming isolation, but there are so many other destinations available similar offerings where visitors can legally access cannabis.

Perhaps the biggest red flag with the Nipton deal is not the misleading information or the inability to grow or sell cannabis in the county. Instead, the real concern should be that 24 hours prior to the first deceptive Nipton “purchase” declaration American Green increased the available ERBB share count by 10,000,000,000 shares. Yes, American Green issued 10 BILLION shares because it is the only way the company can generate any income. This issuance bring the total available share count to 25,000,000,000 ERBB shares making any upward price action almost impossible.

Even on exceptional volume such as the 3,500,000,000 ERBB shares traded the day after the first Nipton announcement, this stock cannot move much, nor can it sustain any sort of positive momentum due to massive share dumping by insiders and convertible debt holders who sell 10s, sometime 100s of millions of shares each day. Baseless pump and dump press releases will no longer move this stock.

Munch and Company

Speaking of inane press, American Green’s first attempt to prolong the dwindling excitement about Nipton came from a long-winded PR about retaining the services of Munch & Co, an Las Vegas based event promoter with a brief and unspectacular foray into the cannabis industry.

https://ih.advfn.com/p.php?pid=nmona&article=75726008

Consistent with past American Green “partners”, Munch & Co is a small-time operation that launched in 2014. Much like American Green’s supposed "involvement" in the cannabis industry, Munch & Co was established as a cannabis-centric event marketing firm.

Unfortunately, little information is available regarding events hosted by Munch & Co. The company website has a link to “events” (http://www.munchandco.com/amenities/) and there are interesting photos of well-known artists at some sort of event but the site offers zero context to accompany the pictures. Nowhere on the site is any details about the photographed event, nor are there any updates about upcoming events.

To date the only cannabis based event linked to Munch and Company, more specifically linked to the company’s founder Freddie Wyatt, is the failed “Kushella” event that piggybacked off the Coachella Festival, billing itself as a “Coachella for pot smokers” (an absurd concept in itself considering Coachella is an extremely 420 friendly event already). This concept was not well received by the residents of the Coachella Valley but even worse, by attendees which lead to closure of the event due explicitly to a lack of interest after the first weekend of what was to be a week long event. The Kushella event was cancelled because of this lack of interest. Once again, the Desert Sun provided valuable information about the debacle:

http://www.desertsun.com/story/news/local/coachella/2017/04/19/kushella-cancelled-coachella-marijuana/305678001/

The logical assumption is that American Green and new partner Munch will be organizing and hosting a grand opening event in Nipton. If the Nipton event is anything like the Zazzz event in Montana or the Kushella ordeal, it will be completely underwhelming. American Green can barely generate enough interest in the company to get 100 likes on Instagram or Twitter yet they think their followers would make a trip to the desert for an event where they will have to bring their own THC products? And helping organizing this event is Munch and Company, a group that wasn’t even able to sustain an event despite sponging from a massive music festival? Give me a break!

Full Disclosure

Finally, on a more personal note, there was question about the “ERBB long” disclosure at the end of my last post. To clarify, I do own ERBB shares that were purchased from 2012-2014. Having sold the majority of those holdings in the 2014 OTC Pot Stock boom, I do have a handful of ERBB shares leftover. Initially, the hopes were to ride the leftover shares to glory but it quickly became evident that American Green is a share selling scheme leeching off the burgeoning legal cannabis industry. For some reason, I am unable to select “no disclosure” so this will have to suffice.

Conclusion

In a few short months California will be part of the legal reform for adult-use of cannabis and the event will be nothing short of spectacular. Having spoken to growers and dispensaries across the state, the discussion about harvest sizes alone is truly daunting. To put it into perspective, Califonia’s population alone is larger than the combined population of every single state where cannabis is recreationally legal. Just about every town and county in California will receive massive tax revenues from cannabis related commerce. That is nearly every town, except Nipton.

Maybe ERBB will see some upward movement as a result of the pending California hype but it will not be sustainable. Several other OTC stocks have a much better chance of participating in the boom because they have not been so thoroughly outed for fraud as has American Green.

Disclosure: I am/we are long ERBB.

Additional disclosure: I own ERBB long shares but would not be considered "long". I have and will not be compensated for this or any writing