Potnetwork Holdings Inc. (fka POTN)

[Drannac]

The CEO has had enough time by April 15, he had better show us what POTN is capable of. I think he will because of his continued rapid introduction of new, innovative, high quality CBD products and marketing strategy as described in detail in the Harbinger report. Now we should be back in a rapid growth phase.

https://www.potnetworkholding.com/sites/all/themes/potn/images/potn-research-report.pdf

Online Sales
During late 2017 and early 2018, the Company experienced extremely rapid month-over-month revenue growth rates of 20% to
30%, mostly topping out at the $2 million per month level by the end of Q1 2018. The Company attributed the flattening of is
sales growth to two primary factors: increased competition and sales organization capacity constraints. Of these two, we believe
sales organization constraints was probably the most important, and is something the Company has been working diligently to
resolve. Management states that they have nearly completed a new call center with greatly expanded working capacity, and they
have also recently hired and are in the process of training what will effectively amount to a doubling of its inside sales staff.
Furthermore, the Company has launched several initiatives that should help it resume solid revenue growth this year of
approximately 40% according to our estimates. These initiatives include the deployment of an outside sales and product
distribution team in Company-branded vans, the rollout of educational kiosks and vending machines designed for shopping malls,
a new customer referral program, and the rollout of its new mobile app.

Mobile App
The Company is in the final stages of development for its new mobile app, which is best explained as an e-commerce enabled
“LinkedIn” for the cannabis industry on a global basis. Geared strictly towards business to business users and transactions, the
app aims to help forge and maintain relationships and e-commerce between different classes of participants in the cannabis
ecosystem.
Outside Sales
In early November 2018, POTN launched its nascent outside sales and distribution team in the Greater Miami market with five
Company-branded vans. These vans will be used by directly salespeople who will work with local cannabis retailers to better
educate them on and provide them with the Company’s CBD products. The Company has chosen to include the distribution
service these vans provide at no extra charge to the customer, which should have a significant positive impact on new customer
acquisition in the local markets served by this team. The Company initially plans to add an addition five such vans to its sales
and distribution fleet, which should soon cover metro Ft. Lauderdale and several other important markets in the southeast. In the
medium term (6-24 months) the Company plans to expand its outside sales and distribution to include the New York market and
other key northeastern markets, as well as the very large metropolitan markets of California.