LOS ANGELES, June 22, 2017 /PRNewswire/ -- PINEAPPLE EXPRESS, INC. (OTC Grey: PNPL) (the "Company"), a publicly traded company that offers consulting, technology, investments, turn-key property rentals and branding concepts to businesses in the legal cannabis industry, announced today that it has signed two separate royalty agreements concerning its THC.com web domain and THC trademark. The agreements were executed by the Company with two different entities whereby THC.com was licensed for a perpetual royalty fee with guaranteed annual minimums and the THC trademark was licensed on an 18-month engagement.
The Company licensed its THC.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 Hit Channel agreed to develop the website and pay an initial licensing fee of $150,000, which it has paid, along with a revenue sharing arrangement thereafter equal to 12% of the Gross Proceeds of sales generated from the web domain. Guaranteed minimum payments from The Hit Channel to the Company during the first, second, and third year of the licensing agreement total $800,000 and $400,000 annually thereafter.
The THC.com website is slated to re-launch in Q3 2017.
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. Established in 1997, PAG is a global organization with multiple office locations: Worldwide headquarters in Los Angeles; San Diego, Colorado and Japan showrooms as well as manufacturing offices located throughout Mainland China. The royalty arrangement obligates PAG to pay the Company 12% of sales during an 18-month engagement and also calls for royalty guarantee payments during subsequent renewal terms. In producing apparel and accessories with the THC trademark, PAG will be utilizing the THC style guide created by the Company and the Company will be approving any and all uses of the trademark on a going forward basis.
PAG expects to commence its sales initiatives of THC branded apparel and merchandise by July 2017.
Matthew Feinstein, CEO and Chairman stated, "We are making incredible strides with revenue generation which will lead to long-term and steady growth for our Company and value for our shareholders. We recently finished paying the prior owners of THC.com and the THC trademark. With that transaction now closed we were ready with these exciting licensing deals, which make the most of these assets by putting them in experienced and capable hands so that our management team can focus on our other revenue generation sources we are currently developing."