Pineapple Express Announces Medical Cannabis Dispensary Registration Conditional Approval for Illinois Consulting Client and Related Revenue Channels for the Company
LOS ANGELES, Jan. 14, 2016 (GLOBE NEWSWIRE) -- PINEAPPLE EXPRESS, INC. (OTCPink:PNPL) (the "Company"), a publicly-traded company that offers cannabis industry consulting, technology, investments, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, announced today that after a 10 month registration process, the state of Illinois granted the Company's consulting client Nature's Treatment of Illinois, Inc. ("NTI") a Notice of Conditional Approval regarding its dispensing organization application for registration. NTI was awarded one of only approximately 60 dispensary conditional registration approvals in Illinois. The dispensary will be the only one in Illinois' District 7. Following receipt of final approval by the state, which is anticipated within the month of January, NTI will engage in the distribution of cannabis for medical use, and related goods and services in the cannabis industry in Illinois. Construction is almost complete on the freestanding building for the dispensary operation and the dispensary is expected to open in early 2016. The Company is currently one of several landlords for the dispensary, receiving 15.18% of all rental revenues paid by the dispensary.
The Company is also negotiating with NTI to provide additional consulting services related to operations and license renewals, and to provide NTI with its "Top-Shelf" Display Safe System to weigh, secure, and display cannabis products. The Company would receive a consulting fee of 5% of gross revenue, in lieu of receiving rental payments. This new consulting agreement, if finalized, would need to then be approved by the Illinois Department of Financial and Professional Regulation.
"It has been a long process getting NTI the registration conditional approval from the State of Illinois but I am happy to report that Pineapple Express came through for yet another one of our consulting clients and capital investment targets," stated Mr. Feinstein. "Since Illinois is a heavily regulated state as it pertains to canna-business, after we finalize terms with our Client on the new consulting agreement, we will then go through the process of disclosing the consulting agreement to the state. We don't anticipate any issues that would hinder our ability to provide consulting services and receive payment now that we have gone through the registration process for our client."
The Company also clarified that it may opt to purchase equity in the dispensary operations in lieu of a consulting arrangement with the dispensary if it is deemed in the best interest of the Company.
"Pineapple Express already has a 15.18% interest in all rental income received from this dispensary client in Illinois," added Feinstein. "The Company can also elect to purchase 15.18% of the dispensary's net income instead of 5% of the gross revenues in exchange for services. We are currently weighing out our options in that regard. As stated, either choice would then need approval from the Illinois Department of Financial and Professional Regulation."
About Pineapple Express
Headquartered in Los Angeles, CA, Pineapple Express is a publicly traded company that invests in, expands, and brands existing and newly established canna-businesses through expert consulting and cutting-edge technology. We provide capital to our canna-business clientele, lease real properties to canna-businesses, and provide consulting and technology to operators within the cannabis industry. We intend to create a nationally branded chain of company- owned cannabis retail stores under the "Pineapple Express" name, as soon as federal laws allow. As long as cannabis remains federally illegal, our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology and branding/retail concept support services. Home to some of the most experienced and well-connected minds in the business, Pineapple Express is at the forefront of the legal cannabis industry.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. More detailed information about the Company is available at www.otcmarkets.com/stock/PNPL/quote. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.