Pineapple Express refocused its real property procurement and leasing initiatives by locating a more cost effective approach in Adelanto, CA instead of Desert Hot Springs, CA. In relocating its “Pineapple Park” development to Adelanto, the Company has saved tens of millions of dollars in development costs associated with purchasing real estate and erecting buildings to lease to the Company’s clientele tenants. Instead the Company has decided to lease an existing 100,000+ SF building in Adelanto that is pre-authorized for cultivation & manufacturing, obtain the requisite permits, build out the spaces, and sublease those spaces at a premium to the Company’s clientele tenants. The Company expects to finalize details on this development project within Q1 2018.
On February 16th, 2016, Pineapple Express announced that it had finalized an acquisition of the business and assets of THC Industries, Inc. (“THC”), the web domain www.thc.com, and the trademark THC®. THC has been an operating business and was incorporated in California since 1996, making THC one of the first internet based cannabis related businesses in the nation. On June 13th, 2016, Pineapple Express announced that it had entered into an agreement with licensing agency The Sharpe Company to develop brand strategy, positioning, and lifestyle merchandise for the Company's THC® brand. Thereafter, the Company licensed its THC trademark to Putnam Accessory Group, Inc., (PAG) a leading accessory design, product development, production and logistics company for private label and branded fashion. They specialize in young men’s, women’s and junior’s headwear; cold weather beanies, scarves, gloves, an array of both fashion and technical bags as well as small accessory items. On June 20th, 2017, The Company announced that it had licensed itsTHC.com web domain to The Hit Channel, Inc. [THC], a media production and marketing company that has stated it has exclusive use of a proprietary social media and e-commerce technology platform. The THC.com website is slated to re-launch in Q1 2018.
On January 27th, 2016, Pineapple Express announced that its client, Nature's Treatment of Illinois ("NTI"), became one of the first licensed Medical Cannabis Dispensaries in the State of Illinois after Pineapple Express assisted NTI with a rigorous conditional registration approval process and inspection. NTI is now able to engage in the distribution of cannabis for medical use in Illinois and is the only medical marijuana dispensary in Illinois’ District 7. The dispensary opened for business on February 12th, 2016. Pineapple Express Consulting, Inc. (“PEC”), a wholly owned subsidiary of Pineapple Express, Inc., executed a management and consulting agreement with NTI whereby PEC was granted a 5% royalty on all sales revenue at the dispensary or 15.18% of income, whichever is less. Pineapple Express will provide NTI with its industry first and patented inventory weighing, product securing, product display, and point-of-sale system dubbed the “Top-Shelf”. The Company also advises NTI regarding ongoing business activities and dispensary license renewals. The NTI investment was sold to a group of the original investors for $150,000 on November 14, 2017. The Company has the option to repurchase that investment for $200,000 within ninety days after the date of execution of the sales agreement at their sole election.
In its development of the patented (US 9642476) “Top-Shelf” Safe Display System, Pineapple Express is converting four critical components of the current dispensary model into one technologically advanced and aesthetically pleasing solution. Dispensary operators will finally have a single industry-specific technology that allows them to: safely display product, secure product in an armored safe, weigh all product in real-time, and dispense product using a fully integrated Point-of-Sale (POS) system that unlocks dozens of storage compartments as transactions occur at the POS. This proprietary technology is scheduled to become available in the first quarter of 2018.