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Replies to post #274141 on American Green Inc (ERBB)
12/14/17 10:40 AM
TEMPE, AZ–(Marketwired – Mar 22, 2016) – American Green, Inc. (OTC PINK: ERBB) today announced that it has it signed a Purchase Agreement for a Class A building in Tempe, Arizona that will be a prime location for a Medical Marijuana Dispensary it will lease to one of its license holder clients.
TEMPE, AZ--(Marketwired - Aug 12, 2016) - American Green, Inc. (OTC PINK: ERBB) announced today that Mr. Jonathan Miller's position as American Green's CEO has been terminated. The company will be guided by its executive chairman, Mr. David Gwyther, who has been, over the years, very familiar with the organization's various initiatives.
"We may have come at it initially thinking grow and dispensaries and that, but the more time we spend out here, the more we realize while it’s something we still want to pursue, it’s not going to happen right here in the town," said American Green's vice president of marketing, Mike Rosati. Instead of highlighting cannabis-centric entertainment, Rosati pointed to Nipton's other options: the neighboring Mojave National Preserve, stargazing, mountain biking and exploring old mines. He said American Green hopes to build a "moderate concert venue." They're also interested in bottling Nipton's water, and eventually infusing it with CBD.
County spokesperson David Wert confirmed Monday that commercial cannabis activity is not allowed on unincorporated San Bernardino County land. That includes cultivation, sales of marijuana products at dispensaries, use of marijuana delivery services and the consumption of CBD.
County counsel informed American Green of the regulations in an August letter, after learning about the company's plans from media reports. Wert said the company has not yet reached out to the county to talk about compliance or cooperation. And he said the county hasn't discussed changing its rules, largely because no residents have asked.
Nipton could bypass county rules by incorporating. But state incorporation guidelines require would-be towns to prove the viability of their tax bases. Nipton, with fewer than 20 residents, "would not come close," Wert said.
"Fraudsters often exploit the latest innovation, technology, product, or growth industry – in this case, marijuana – to lure investors with the promise of high returns. Also, for marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances. When publicly-available information is scarce, fraudsters can more easily spread false information about a company, making profits for themselves while creating losses for unsuspecting investors."
Things aren’t always what they seem in the heat of the desert, and American Green’s purchase of Nipton may be no exception. While most of the press attention on the sale focused on the novelty of a cannabis company owning a town, New Cannabis Venture’s Alan Brochstein is the first to draw attention to American Green’s dire financial situation. According to their most recent filings, American Green has only $191,000 in cash, about $2.1 million in assets, yet $8.76 million in liabilities with over $8 million due this year. Brochstein described American Green as “an incredible disappointment for investors since inception.” Furthermore, according to Brochstein, the company is “on a serial dilution treadmill from which it is unlikely to escape anytime soon.” So far, instead of making money, it appears that American Green has just created more shares to pay down its hefty debts. Brochstein suggested that investors proceed cautiously, because “the company has a long history of issuing exciting press releases but then not following through.”
Given Brochstein’s dire prognosis of the health of American Green as a company, it’s hard to say for certain if this project will ever get off the ground, or if it will be one more case of “not following through,” leaving Nipton high and dry.
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