LAS VEGAS, July 21, 2014 /PRNewswire/ --
To Our Shareholders,
Introduction: Much has been happening at GrowBLOX
Sciences, Inc. (OTCQB: GBLX) over the past three months, and I
wanted to take a moment to update you on our progress. On
March 12, 2014, we entered into an
asset acquisition agreement that took us to the forefront of the
emerging legal cannabis industry. The March agreement gave us
intellectual property, equipment, business plans, and other assets
that we think will allow us to revolutionize our industry by
turning cannabis cultivation from an art into a science.
From Art to Science: Current cannabis cultivation is
typically performed without standard methods, scientific scrutiny,
or rigorous testing – you might call it a dark art. The
invention of our GrowBLOXTM growing chamber seeks to
change all this by controlling, standardizing, monitoring, and
testing every aspect of cannabis cultivation. We've invested
millions of dollars and hired some of the best engineers and
botanists to develop this chamber. The chamber is a sealed,
sterile environment where computers measure and control everything
from temperature, to lighting, to water, to oxygen, to
CO2. The result is something like a cannabis
factory, where, because you control all the variables, you get
consistent, pure, toxin-free strains of cannabis in predictable
volumes. You can see a video demo of the chamber on our
website, gbsciences.com. To our knowledge, no other company
can claim to cultivate high volumes of cannabis with the
predictable, standardized outputs that we will achieve.
The GrowBLOX Solution: Not only have we developed our
proprietary GrowBLOXTM growing chamber, but also a
complete solution to the challenges facing the medical marijuana
industry. The full GrowBLOX Solution contains: 1) the
GrowBLOXTM tissue propagation chamber for preparing
clonally-derived plants; 2) the original GrowBLOXTM
growing chamber; 3) the GrowBLOXTM curing chamber to
cure and dry each Cannabis harvest; 4) the GrowBLOXTM
extraction chamber to create our proprietary oils; 5)
GrowBLOXTM branded, childproof packaging for each of the
GrowBLOX strains and cannabis-oil based products; and 6) GrowBLOX
research supporting the medical efficacy of our products. We don't
sell the GrowBLOX Solution to the public or even to the medical
marijuana industry. Instead, we will enter strategic partnerships
in each state as we rapidly expand.
Turning It into a Business: On the strength of our
GrowBLOX Solution, our subsidiaries were awarded two permits in
Clark County, Nevada: one to grow
cannabis in our industrial grow facility and a second to open a
retail dispensary in the Fort Apache area. Securing these
permits in a highly competitive process was a huge victory for our
company and in our view, the hardest part of the entire
process. We still need to receive State approval before we
can open these two facilities. We cannot guarantee the result
or the timing of the State's process, but it is our current
expectation that we will be fully licensed for both the grow
facility and the dispensary in the fourth quarter of 2014.
Allowing some time for construction, we should be on pace to be
generating revenues from both the cultivation and sale of legal
medical cannabis in the second half of 2015.
Just the Beginning: As exciting as the opening of our
Nevada sites will be, it is just
the beginning for our company. Our industry is an emerging
one, and we view the current environment as a land grab.
Accordingly, we are in the process of attempting to secure
cultivation and dispensary licenses throughout the country through
our strategic partnerships. Each state has its own rules and
requires working with the right local partners. We are
currently in various stages of permit applications in several
states, including Florida,
New York, Illinois, as well as the territory of
Puerto Rico which is taking an
aggressive approach to launch a cannabis industry. We will
continue to develop other territories as aggressively as we
can. It is impossible to predict the timing of the award of
the permits, but we are optimistic that we will have others to
announce in coming quarters.
The permitting process is always competitive, rigorous, and
thoughtful as states and cities seek to make the right choices for
their communities. Our secret sauce is our
GrowBLOXTM Solution which alleviates overseers' fears
about the lack of sterility, the use of pesticides and toxic
chemicals, and the inconsistent levels of active compounds in
plants when grown using traditional methods.
The Cash Solution: We also have a second ingredient in
our secret sauce: a banking solution. Today, the medical cannabis
industry is challenged by something very mundane – cash
management. Traditional banks are almost never willing to
accept a dispensary as a client. The high volumes of cash
transactions in a dispensary also pose a security risk. Our
relationship with First Security Bank of Nevada gives us a partner to manage the
currency and banking flow of our retail operations. We were
able to sign a letter of intent with First Security because of our
pioneering cashless dispensary solution. Through the use of
ticket kiosks and enterprise software, no employee of ours will
ever touch cash in a dispensary. It will go straight from the
customer to the kiosk to the bank, with the cash secured and
auditable every step of the way. This solution addresses a
host of the industry's concerns, from money laundering to
theft.
We Are Really a Biotech Company: The roll out of
our nationwide dispensaries and grow facilities will position us to
be the world's premier supplier of standardized, medical grade
cannabis. Research at leading universities has shown that
various compounds in the cannabis plant may be beneficial in
treating a wide range of medical conditions, everything from
glaucoma to epilepsy to cancer. GrowBLOX is embracing the
science, and actively supporting the research of, cannabinoid-based
therapeutics as effective medicine for multiple health
conditions.
In the second half of the year, we expect to begin establishing
clinical trials for the treatment of serious medical conditions
using medicinal marijuana-derived therapies, each addressing a
large unmet clinical need. For each successive condition, we
will be filing for patents on: 1) distinct strands of cannabis that
we grow in our proprietary manner, 2) process patents to protect
our proprietary extraction methodologies, and 3) specific
pharmaceutical formulations. Our vision is to be selling our
own medical-grade marijuana; as well as plant-derived
neutraceutical and biopharmaceutical products over time. In
addition, we are poised to become a supplier of standardized,
medical grade cannabis-derived compounds to the pharmaceutical
industry. That's why, as much as we view ourselves as a
leader in the cannabis industry, we also think of ourselves as a
real contender in the emerging cannabinoid-based biopharmaceutical
industry.
Financing: How will we fund all our growth? Yes we
have large ambitions, but are taking a methodical and calculated
approach to growth. Earlier this month, we announced the
closing of a $5 million private
placement with institutional and accredited investors. The
financing included warrants which, when fully exercised, amount to
a $30 million financing. By
next year, we expect to see significant monthly revenues from our
grow facility and dispensary in Nevada. As we add new
dispensaries, our cashflow will continue to grow. I am the
largest shareholder of this company, so I am very sensitive to
dilution and I strive to keep expenses low.
Summary: As you can see, so much has happened in the past
three months. We've gotten two key permits, solved the
industry's banking problem, developed a robust pipeline of new
dispensary and grow facilities, raised significant financing,
gotten to the point where we are months away from revenue, and
positioned ourselves to be the leading supplier of standardized,
pharmaceutical-grade cannabis. Along with my colleagues at
GrowBLOX, I feel that we are at the forefront of a revolution and I
couldn't be more excited about the future.
Sincerely,
Craig Ellins
Chairman and CEO
GrowBLOX Sciences, Inc.
About GrowBLOX Sciences, Inc.
GrowBLOX Sciences, Inc., is a research and biotechnical company
that has developed proprietary indoor growing chambers specifically
designed for medical cannabis cultivation. The
GrowBLOXTM chamber allows for completely controlled
growing conditions, ensuring the manufacture of a consistent,
toxin-free, natural and medicinal-grade product. The Company
believes that the advantages of a controlled environment over
traditional outdoor or greenhouse growing, will empower the public,
physicians and pharmaceutical industries to embrace cannabis as an
effective treatment for a myriad of serious medical
conditions. http://www.gbsciences.com
Forward-Looking Statements
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are inherently
unreliable and actual results may differ materially. Examples
of forward-looking statements in this news release include
statements regarding the payment of dividends, marketing and
distribution plans, development activities and anticipated
operating results. Factors which could cause actual results
to differ materially from these forward-looking statements include
such factors as the Company's ability to accomplish its business
initiatives, significant fluctuations in marketing expenses and
ability to achieve and expand significant levels of revenues, or
recognize net income, from the sale of its products and services,
as well as the introduction of competing products, or management's
ability to attract and maintain qualified personnel necessary for
the development and commercialization of its planned products, and
other information that may be detailed from time to time in the
Company's filings with the United States Securities and Exchange
Commission. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
Jonathan Barkman
Riverview Capital Enterprises
+1-866-845-0105
SOURCE GrowBLOX Sciences, Inc.