LOS ANGELES, CA--(Marketwired - March 04, 2015) - Agritek Holdings, Inc. (AGTK) (http://www.Agritekholdings.com), a fully reporting company on the OTCQB and leader in Compassionate Care Technology and indoor/outdoor agricultural solutions for the medicinal marijuana industry, today released a Letter To Shareholders updating current activities and outlining its Corporate Strategy for 2015, as follows:
Dear Fellow Shareholders:
As the CEO of Agritek Holdings, and as a major shareholder myself, I want to first take this opportunity to thank you for your decision to continue to be an investor within this Company and for your ongoing support as we continue to strategically build your company within the emerging multi-billion dollar cannabis industry.
First and foremost, there is a lot of work yet to be done to maximize the value of our existing portfolio of business assets. I believe that 2015 will be a pivotal year for the company as we transition from acquiring, and investing to the alignment and ongoing vertical development of our core and key business models in both our agricultural land division and expanding our wellness products subsidiary that will allow for both consistent and meaningful revenue generation.
Although, in my opinion, our current price per share does not reflect it, I am pleased at the accomplishments and land assets we have been able to accumulate over the last several months and strategic relationships we have achieved. My hope through this correspondence is to restore the confidence in your Company and present a firm understanding of our past and present accomplishments and at the same time provide a blue print to where we see our immediate future within the sector.
We are continuing our product development and expansion of our trademarked Mont Blunt™ Brand, now being revamped to proprietary technology with further planned expansion within the e-juice and hemp CBD enriched oil markets. With plans for the addition of a new marketing team and strategy in place, we firmly hold the belief our brand can be at the top tier in our industry. From a standing start, and as a fully reporting Company within the sector, we have positioned Agritek Holdings as one of the most strategic and 360 degree model companies within the recreational cannabis space. I believe that no other company within our sector presently holds as assets the amount of agricultural approved land for recreational use, water rights, agreements with licensed entities, its own trademarked vaporizer and financial software platform as a single Company with fully reporting status, yet one of the smallest market caps in the industry.
The recreational cannabis industry is a sector that has suffered many setbacks, seemingly each month, more change and inconsistencies in regulations than any sector in the history of the marketplace including legal research determining the acceptance of meaningful revenues within federal guidelines. Often being the first, or a pioneer within a new frontier has its setbacks. I am here today to admit I have had my own defeats running your Company for so long through these uncharted territories. However, I am pleased to report that within the next short weeks, we plan on adding new additions to our Board of Directors which include candidates with years of experience within the capital markets, previous license holders and operators within the cannabis sector, creating a team that can fully execute on our pool of assets of both our land holdings and wellness products that will form a remarkably dedicated group with a unique set of skills that will ensure your company's success.
Together with our new advisory committee also soon to be announced, I have been meeting with regulators and licensees across the country to ensure a smooth launch of our Colorado, Nevada and California operations. With the benefit of former and current members of the various branches of government (legislative, executive and judicial) in multiple legal jurisdictions, we have been able to find the correct operational strategies, open doors, satisfactorily answer questions on behalf of licensing and distribution of our wellness products and land operations that are now anxiously anticipated.
We have presently still available $350,000 as investment notes to fund our sales and marketing efforts. We have been offered several million dollars in credit lines to fund our operational projects in Colorado and Nevada. I believe we will have the necessary financial resources available to us upon the announcement of new management and expansion of our advisory board which represent the perfect ensemble of professionals and an awaiting market to deliver strong financial performance and maximum use of our asset portfolio, while ensuring that our performance levels can be sustained over the long term.
Agritek Holdings and its subsidiaries are setting a series of long-term targets, but at the same time with the enrollment of our new team of professionals both within management and marketing, will work to ensure that they also support our short-term needs. There is little debate that the pace of change within the recreational cannabis space today can be challenging. It is now time for us to turn our work and acquired assets into balanced and strong revenue streams. To that end, we will remain dedicated, capable and focused. We have identified three business initiatives which represent the lowest hanging fruit on which we will focus to achieve growth over the near term.
Our first initiative is to successfully launch our 40 acre property with water rights in Pueblo County, Colorado. Initially, our plan of creating a "medi-farm" of several green houses with several tenants created a cost of several million dollars of infrastructure for the Company with a minimum three year return on investment based mainly on rental income. We have since entered into negotiations with a single tenant presently holding five recreational licenses in Colorado for the sublease of 20 of the acres to become a Hemp farm to create high CBD strains on behalf of the Company. The Company will benefit from the revenue of rental income, CBD Oil production and distribution within the licensing of multiple product lines, with minimal infrastructure cost for the outdoor Hemp grow. We have made enormous strides accomplishing this initiative and will continue to exert our energies here. We are confident the Colorado land project as a Hemp and CBD oil extraction operation has the largest performance potential and will allow for a launch of our pre-filled Mont Blunt wellness products, it is self-sustaining, with minimal risk and cost, unique and market-driven.
Our second initiative is to complete the operational agreement with our licensed operator in Nevada for cultivation and production. Since the initial announcement, Green Leaf Farms has entered into a purchase agreement for a 22,500 sq. ft. facility in North Las Vegas for a purchase price of $2.8 million dollars which will be a cash purchase by a third party investor and Nevada resident. Agritek Venture Holdings representatives have been working closely with the Green Leaf team providing plans, cultivation experts and is expecting to execute the five year operational agreement which would result in additional revenue annually for the Nevada operation from equipment leasing, consulting and exclusivity of extraction products and brands.
Our third initiative is to work with state regulators to make certain our scalable business plans and operations comply with all state laws and then begin offering those business platforms to licensees in cultivation and production facilities as well as retail dispensaries in multiple jurisdictions including ongoing negotiations with two Native American tribes.
I truly believe we are making progress on all fronts. It is hugely encouraging to see the potential of our team growing with tremendous professionals in our industry to help execute the above. I am certain with the help of these new individuals to be announced, we will prove to have the wherewithal, the ingenuity and the desire to keep moving forward productively.
The year of 2015 brings for Agritek Holdings a very active agenda. As a company, we agree that we need to accelerate the pace in which our land assets, products, services, and brands expand throughout our approved and regulated markets. We have a portfolio of real property and multiple wellness brands which we will continue to work on building and establishing as top leading brands into targeted consumer sectors; such as, operating revenue producing agricultural real estate in regulated jurisdictions, Hemp CBD Oil related products, nutritional supplements and edibles, and body care products as well as increasing operational contracts in multiple jurisdictions for approved licensees and Native American Tribes. Our executive leadership clearly understands that the medicinal and recreational cannabis industries are expanding very rapidly and it is paramount for us to not only keep pace, but to also stay ahead of the curve as we continue to build a much stronger Agritek Holdings on behalf of our existing shareholders and new investors.
I attribute our future success and our ongoing progress in unlocking the synergistic value of our assets to the dedication and efforts of our expected new and exceptionally talented team, our valuable strategic relationships and the ongoing support, guidance and commitment of our incoming board of directors.
I am encouraged about the future growth prospects for Agritek Holdings. We will continue to identify, innovate, invest, partner and launch unique products to further build our brands in all of our business segments within all legal jurisdictions. I will work tirelessly with our new management team once in place, who are firmly committed to growing the Company and delivering value for future clients and shareholders. We will continue to manage your company in a responsible manner in order to regain our competitive position within our sector. We shall remain focused on our initial plan - providing a scalable business model and solutions to an emerging cannabis industry.
During the year ahead, I look forward to sharing with you new milestones and accomplishments, as we lead the Company through its next stage.
I am thankful to you, our shareholders for the years of dedication and continued confidence and support you have shown as we continue our mission in driving sustainable, long-term growth and value for our shareholders. I hope you now share our renewed positive outlook and agenda about your company's path and the shared opportunity on behalf of Agritek Holdings.
Respectfully,
B. Michael Friedman
CEO, Agritek Holdings Inc.
FORWARD-LOOKING DISCLAIMER:
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein.
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