Cannabis U.S. Companies

[JohnCM]

Conversation I had with CEO

John –

Really like what they are doing. I would immediately initiate a stock split. Better now than later.

Authorized Shares 4,945,000,000 a/o May 15, 2017
Outstanding Shares 2,630,788,915 a/o May 15, 2017

1 for 10 would reduce O/S to 263,078,892 and would be manageable. I will suggest this to the company.

Anthony –

NEVER EVER DO A REVERSE!! INVESTORS ARE ALWAYS SCREWED…. I’VE DONE ONLY 3 IN 26 YEARS

John –

I understand. But the company is now attracting many, many new follower’s due to the green rush. Existing shareholders will do fine. There is momentum that would carry the valuation of company shares higher. Typically, a R/S is an artificial way to bring company shares out of the dumps or to stay listed at a certain level.

If US ENERGY split, right now, and had an outstanding share count of 200,000,000 that would be a perfect number. The share price USEI would be $0.014 and would climb higher from there.

Another thought would be to rename the company or spin off
USEI Cannabis Corporation. The “cannabis” name is very valuable right now.

I do not like R/S. Rarely does it work. But there are instances where it does work indeed. This would be perfect timing.

Anthony –

I understand your logic… but in the short term this stock has a long way to go forward… we have many milestones before us… there will be a significant amount of press going forward.

Organically this stock can grow above .005 to .02 if we produce the revenues predicted even in the next few months (this is not a stock play for me). By February we intend to acquire a second CO2 processor which will immediately double revenues. I truly believe in this revenue model. I was in Oregon and one MRX client had 4 of these machines going 24/7 and will produced 12 million this year.

They too started with just one unit. I’m not naïve, a reverse in inevitable however, now is not the time. if we generate real revenue, get fully reporting and then the R/S has a sustaining power for this firm, and at that point any heat I will take from shareholders will be insignificant. That is my logic at this moment.

Also note… I am contemplating that spin off concept. Just not sure how to do it at this moment. And you are right about many of your thoughts

John –

“if we generate real revenue… get fully reporting and then the R/S has a sustaining power for this firm

I like this way of thinking! I would be a shareholder, if I knew that the O/S would be reduced, by one way or the other, below 1B at some point

What do you think about the “name change, or spin off” idea?

I really appreciate the dialog. I am a native Californian and just recently jumped back into MJ investing. Excited about the new ETF MJX. So many things to discuss. What do you think about “big tobacco”? I started with Tweed at $2.00 and when there were 10 licensed growers in Canada.

Best of luck to you and I will be following your company closely!!

Anthony –

Name change and spin-off are good moves… for sure… ultimately, we will get below 1B… I got a crazy idea that will come soon… hopefully a good curve ball to retain those who are currently in this market. Note I have done 15 start-ups and been doing public company stuff and an officer, director, capital raiser or principal for over 25 years.

Leaning on those experiences to move this firm forward, I cannot rule or run the firm by the stock price. My most pressing goal is to create a revenue model that will sustain growth and pay the bills and keep shareholder interest and prosperity. And cannabis seems to be an excellent path for us to take.

Thanks a Bunch