Green Energy Management Services Holdings Reduces Balance Sheet Debt, Returns 9,100,000 Shares to Treasury and Converts $500,000 of Debt into 2,000,000 Shares

NEW YORK--(BUSINESS WIRE)--

Green Energy Management Services Holdings, Inc. GRMS (the "Company" or "GEM"), which recently officially launched its infrastructure and technology services platform for the legal Marijuana industry, providing consulting services, horticultural guidelines and recommendations, construction management, and financing alternatives for customers wanting to enter the industry, today announced significant improvements to its balance sheet and capitalization structure.

Through negotiations with various parties, the Company has:

• Reduced the Company's outstanding short-term and long-term debt, as well as certain liabilities, by approximately $1,000,000.
• Reached an agreement with certain Company shareholders resulting in the return of approximately 9,100,000 shares for cancellation, which represents 13.3% of the Company's current issued and outstanding share count.
• In connection with the debt reduction, the Company successfully negotiated the conversion of $500,000 into 2,000,000 shares of the Company's common stock (or $0.25 per share). The debtholder also agreed to waive any and all other outstanding claims, debts, amounts, payments and liabilities owed by the Company to the debtholder, which exceeded $600,000, including the $500,000 that was converted.

The accounting impact of these events will be reflected in the Company's filings of its quarterly results for the first and second calendar quarters of 2015.

In keeping with the Company's recently announced new strategic business direction and agreement with Lotus MMJ Consulting, LLC, the Company also has formed a new operating subsidiary "420 Premium Products, LLC," which the Company will utilize to execute and operate consulting services, horticultural advice, construction management, and financing alternatives for its future customers entering or wanting to enter the legal Marijuana industry. Subject to raising additional capital, the Company also plans to research non-THC based treatment alternatives focused on a variety of illnesses.

Effective as of April 13, 2015, the Company announced the reappointment of Mr. Barry Korn as Interim CEO, Acting CFO, and Interim Chairman of the Board, while the Company continues its search for one or more qualified industry specific executives to take on such roles on a permanent basis. Dr. Robert Thomson resigned due to health reasons that no longer allowed him to provide meaningful time and appropriate amount of attention to the Company's business.

Commenting on the changes Mr. Korn noted, "Streamlining our balance sheet and capitalization structure are important milestones as we position the Company to access capital and execute its business model of creating a nationally recognized brand of infrastructure and technology services for clients who want to enter the legal Marijuana industry. The name "420" is synonymous with the Marijuana community and should assist GEM in the branding of its services."

About Green Energy Management Services Holdings, Inc.

As of March 17, 2015, the Company began to provide infrastructure and technology services for the legal Marijuana Industry. These services consist of consulting, horticultural advice, construction management and financing alternatives for customers wanting to enter the industry. The Company also plans to research non-THC based treatment alternatives focused on treating a variety of illnesses.

The Company's current website is www.greenenergymgt.net. The Company is in the process of considering a name change and updating its website to more appropriately reflect the new business model. The Company's new website will provide its investors information on its new business model and activities, as well as all of its past filings, press releases and communications. Please visit www.lotuscannabis.com and see below to learn more about Lotus MMJ Consulting, LLC.

About Lotus MMJ Consulting, LLC and Erik Santus, Owner & Managing Member

Mr. Erik Santus serves as the Chief Operating Officer for Lotus MMJ Consulting, LLC providing the Company with the extensive knowledge and experience needed to successfully navigate and control operational components of running a medical marijuana establishment. Based on his many years of research Mr. Santus also focuses on finding non-THC based alternatives to treat and cure the ill.

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company, including statements about the Company's expectations regarding projected revenue, market size and the value of the services to be provided by Lotus to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the Company and its business, especially those related to the highly regulated and uncertain marijuana industry, the Company's ability to fund and implement its new business model, its ability to benefit from the Advisory Services Agreement and the new business plan, the contribution of Lotus' executives and the continued rapid growth of the local Colorado and other states' legal marijuana industry, could cause the Company's actual results to differ materially from those indicated in any forward-looking statements. These and other factors are identified and described in more detail in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K filed with the SEC on May 13, 2014. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.