Upper Street Marketing, Inc. and Cannabis Company Growing Springs Holdings Announce Growth Plans and New Management
GlobeNewswire•October 16, 2018
SCOTTSDALE, AZ, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Upper Street Marketing Inc. (OTC: UPPR) is pleased to announce that further to the news release of July 26, 2018, that the merger with Growing Springs Holdings Corporation (GSHC), of San Diego, California, has now been completed. The shareholders of Growing Springs Holdings Corporation have exchanged their ownership of Growing Springs for ownership in Upper Street, and Upper Street now owns 100% of Growing Springs.
Growing Springs Holdings Corporation via its wholly owned subsidiary, Growing Springs LLC (GSLLC), provides exclusive liquid conversion water technology to various cannabis and hemp cultivators in the U.S. and Canada. Additionally, Growing Springs Services Group (GSSG) acquires and operates cannabis cultivation, dispensary and related manufacturing operations.
Several Upper Street shareholders transferred the majority of their shares to the shareholders of Growing Springs whereby they, the Growing Springs shareholders, now own a controlling interest in Upper Street. Upper Street now has approximately 71 million common shares issued and outstanding.
Mr. Joseph Earl, the founder and CEO of Growing Springs Holdings Corporation has assumed the role of CEO and President of Upper Street Marketing, Inc. and has been appointed to the board of directors of Upper Street.
Upper Street Marketing, Inc. has raised sufficient working capital and has begun executing on the Growing Springs business expansion.
BUSINESS EXPANSION HIGHLIGHTS
Using the unique business model of management contracts and royalty agreements, Growing Springs/Upper Street has created the following businesses that we manage and are paid royalties and management fees from;
A licensed Colorado Springs cannabis dispensary, cultivation manufacturing operation that already has approximately $1 million in annual revenues. Our plan is to expand the revenue to $1 million per month by the end of 2019. 100% of the income generated comes to Growing Springs Holdings Corp/Upper Street from which we pay all of the operating costs, which is approximately 40% of revenues. Growing Springs acquired this opportunity for cash of $1.7 million payable over 18 months, plus 250,000 restricted common shares of Upper Street Marketing, Inc.
A one time hemp transaction for a substantial amount of bio-mass that contains significant amounts of Cannabidiol (CBD), from which we expect revenues of $3 million by the end of the current year (2018).
Growing Springs/Upper Street is negotiating for the cultivation of up to 1,000 acres of hemp for cultivation in 2019 and beyond, as well as a 200,000 square foot facility for processing Cannabidiol or CBD from the hemp. CBD is a chemical compound in cannabis with a variety of uses. Growing Springs/Upper Street plan on being able to grow and process up to 1,000,000 pounds of bio-mass in 2019 and up to 3,000,000 pounds of bio-mass in 2020 from the 1,000 acres and the processing facility. Using current pricing for CBD extract this could generate up to a target of $50,000,000 of revenues for in 2019 and a target of up to $150,000,000 of revenues in 2020. The estimated costs for growing the hemp and processing of the CBD oils is approximately 40% of the revenues. Negotiations are at an advanced stage, but have not concluded.
Growing Springs/Upper Street is also negotiating an additional 7,000 acres of hemp for cultivation.
Joseph Earle, President and CEO of Upper Street and Growing Springs states, “This merger is a perfect fit and offers the best vehicle for financing needed for rapid growth and expansion of the Growing Springs Holdings Corporation business model.”
Upper Street Marketing, Inc. will immediately begin the process of changing its name to Growing Springs Holdings, Inc., and will apply for a change in its trading symbol.
The company has begun the process to become a fully-reporting issuer and to up-list its shares to the OTCQB or OTCQX.
Growing Springs' website is www.growingspringsholdings.com.
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the Company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about the Company's business, based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such statements could be affected by risks and uncertainties related to: (i) our ability to integrate Ennoble Progressive Beverage Distribution Inc. into the Company's operations, (ii) product demand, market, and customer acceptance of the Company's products, (iii) the Company's ability to obtain financing to expand our operations, (iv) the Company's ability to attract qualified sales representatives, (v) competition, pricing and development difficulties, (vi) the Company's ability to conduct the business if there are changes in laws, regulations, or government policies related to the Company's products, (vii) the Company's ability to conduct operations if it faces product recalls, and (viii) general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release
