American Green Inc (ERBB)

[nopancakemix]

Popeye Here's A Few Things To Consider
Yes comparing ERBB share structure to MSFT is not proper. I have MSFT share with a cost basis of .17 having bought them for a few dollars when the company started. But MSFT got to a 10b share count because the stock kept soaring and the company split in order to make more shares available as they grew into a massive global business. ERBB has achieved the large share count through constant dilution which is vastly different.

BUT

The main reason ERBB has to dilute shares is because the company is not able to receive traditional financing through banks and other institution due to the nature of the marijuana industry still being strangled by the Controlled Substances Act.

HOWEVER

As of Tuesdays SJC hearing, the federal government is discussing allowing banks to become involved in marijuana related companies in legal states. THIS NEWS IS ENORMOUS. In fact, New Jersey just committed $375,000 of state funds to help a dispensary in that state (don't have the link but it has been posted here and should be easy to find with a simple google search). Allowing MJ companies to setup accounts at banks is a win-win; removes the dangers of having large amounts of cash which is safer for dispensaries/patients but it also gives authorities a paper trail to assist in regulation.

As for you comment that sales will "never be able to measure up to the current share structure", that doesn't make much sense. Yes, it is extremely unlikely that ERBB will ever achieve sales enough to drive the stock to $1 but that is something only time can tell.

Some of the top dispensaries in LA can make as much as $10m in annual profits (profits not income/ revenue before expenses and liabilities). If Altitude Organics can do half that with 2 dispensaries in CO that is some decent cash flow. In WA one proprietor can only own 3 dispensaries and if ERBB can franchise out that could be an additional flow of capital. And there's always AZ. Those 3 states alone could generate an annual $20 in profits and cash flow.

Additionally, the 21 Machine or Green machine, Tranzbyte's vending machine system, could be a gold mine. Those "mom and pop" shops you refer to could easily sell weed and bite into dispensaries market share but they are just as likely to install a vending machine instead of handling the transactions. Grocery stores in CA and ofher states can sell liquor, wine and beer but there is still an abundance (over abundance) of independent liquor stores so I think the cannabis market is big enough for everyone. With a 21 Machine or Green Machine Tranzbyte stands to rake in untold sums in recurring income through licensing, restocking and technical fees.

Then there is the Yo! Card which I know nothing about other than pre-paid, high-interest debit/credit cards are a big business.

And also the RFID tech.

The dispensaries could be the cash flow and the vending, credit/debit, or RFID could be the real magilla