LOS ANGELES, Aug. 1, 2017 /PRNewswire/ -- PINEAPPLE EXPRESS, INC. (OTC Gray: 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, today issued the following shareholder update letter from Matthew Feinstein, CEO and Chairman.
To our valued shareholders:
First and foremost, I thank you for your continued support of the Company. As CEO of Pineapple Express, I wish to take this opportunity to recount our recent corporate actions and business activities.
- We are in the final stages of a recent audit covering our wholly owned subsidiary, THC Industries LLC as well as our parent company, Pineapple Express, Inc. Once these audits are complete, which is anticipated to be any day, we will immediately file our registration statement with the SEC. To reiterate, we expect this to be any day within the next couple weeks once the audits are signed off by our auditing firm.
- Contingent upon filing of the registration statement with the SEC, the Board of Directors has approved a 2-1 restricted stock dividend to shareholders of record on December 31, 2017. Additional details on the dividend will be provided upon filing of our registration statement with the SEC.
- We have leased a pre-entitled and correctly zoned 107,000 square foot cultivation and manufacturing warehouse in Adelanto, CA and have branded the same "Pineapple Park – Adelanto". We have sub-leased about 34,000 SF at a profitable rental rate and plan on keeping 11,000 SF for ourselves to launch our licensed manufacturing and cultivation activities in California under the Pineapple Express PüR brand name. Interior construction of the building has commenced for our existing tenants and we are in the process of leasing the remaining 62,000 SF of space in that warehouse over the course of the next 6 months.
- We closed on a transaction at $700,000 to acquire 1.26 acres of vacant land (APN 665-030-043-1) that we are developing in Desert Hot Springs, CA for cultivation and manufacturing activities. The Company now solely owns that land free and clear of any encumbrances.
- After acquiring the THC.com domain and THC registered trademark, the Company licensed our THC trademark to Putnam Accessory Group, Inc., 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 also announced that it had licensed its THC.com web domain to The Hit Channel, Inc., 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 Q3 2017.
- On May 9, 2017, the USPTO granted Patent US 9642476 to Pineapple Express for its "Top-Shelf – SDS" (Safe Display System). This unique invention converts 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 third quarter of 2017.
- On January 27th, 2016, we announced that our 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.
- We are currently in the process of opening our first Pineapple Express branded dispensary location in LA County that will feature our products. We expect this might occur by yearend but we cannot be certain as far as timing or if we will be able to open this location at all since local laws are changing rapidly. We are diligently pursuing this opportunity and feel we have the knowledge and experience to roll out a retail chain with ease. I have over 5 years of experience in the cannabis industry and have rolled out 400+ company owned and franchised DVD rental stores at the last private retail company that I owned. Our VP of Business Development, Theresa Flynt, established, designed and implemented over 15 HUSTLER HOLLYWOOD retail stores nationwide along with securing licensed products during her 21-year career at Hustler, in various executive roles with the company.