Phoenix, AZ -- March 21, 2018 -- InvestorsHub NewsWire --
Today American Green, Inc. (OTC: ERBB) will be answering
the most popular questions received from shareholders regarding the
company’s recent Nipton, California transaction to Delta
International Oil & Gas, Inc. (OTCQB: DLTZ) that was
announced on March 15, 2018.
American Green - Delta International
Questions
Below are a series of questions posed by American Green
shareholders and other interested parties along with the answers to
those questions.
1. Who owns and controls Delta
International?
Upon closing, American Green will own over 80% (majority share
ownership) of Delta International Oil and Gas. This will mean that
American Green will own controlling interest in this fully
reporting public company.
2. Will American Green retain any
of the potential profit from the Nipton
Enterprise?
Because ERBB will control Delta, it will be able to
incorporate that same ownership percentage of Delta’s revenues and
profits on the books of American Green. In other words, should
Delta book $1 million dollars in net income next year, then
American Green will show an additional $830,000 of net income on
its books.
3. Are ERBB shareholders getting a
dividend as a result of this transaction?
American Green is planning to issue qualifying ERBB shareholders a
dividend as a result of this sale which will be paid to them in the
form of a registered share distribution following a registration of
those dividend shares, all subject to filings with the
SEC.
4. How many shares will each
shareholder receive in each dividend?
The number of dividend shares will be based on the number of ERBB
shares held by a shareholder at a to-be-determined record date that
will be announced after the registration becomes effective. Once
the plan is devised, details of how the dividend will be
calculated, as well as how many ERBB shares a shareholder must own
to qualify will be announced.
5. What, exactly was the deal
American Green made with Delta International?
As part of the transaction, Delta assumed over $3.7 Million in debt
and American Green received $4 Million in preferred shares,
convertible to 160 million common shares of Delta. This equates to
a price of 2.5¢ per converted Delta Common share. As of March 20,
Delta Common shares were trading at 19¢ (bid). American Green may
be able to reflect any increased value, over its cost, on its
future financial statements.
6. Who will manage The Nipton
Project now?
American Green has a contract to manage the Nipton properties for 5
years plus an option to extend that contract for an additional 5
years, for a total of 10 years.
7. Will American Green earn future
revenues for its participation in Nipton?
American Green will continue to receive compensation to manage
Nipton and is compensated on a “cost plus 20%” basis by Delta, thus
assuring that American Green continues to profit and participate
from all Nipton enterprises. However, American Green and Delta plan
to have American Green manage other projects acquired by
Delta.
8. Why did American Green sell
Nipton in the first place?
Buying and building towns is very cash intensive. Up until
now, the cost of attracting capital has been very expensive for our
company, due, in part to the fact that American Green is an
unaudited, non-reporting “Pink Sheet” company. It now becomes
Delta’s responsibility to raise capital for real estate and other
non-cannabis-related improvements. Delta, as a reporting company,
with a much smaller number of outstanding shares (compared to
American Green’s) and a much higher trading price, should
have a much easier time raising money, at less cost, leading to a
sizeable reduction in dilution for American Green and its
shareholders.
9. What’s left in American
Green?
In addition to its ownerships interests in Nipton (via its
ownership of over 80% of Delta), American Green retains all of its
interests and revenue - both potential and current - in its managed
cannabis grow operation in Phoenix, AZ, it’s smart vending
division, American GreenCrete, its online cbd store
(http://www.americangreencbd.com) and all its other
enterprises.
10. When can American Green
shareholders expect their dividends?
Prior to their distribution, the anticipated shareholder dividends
to American Green shareholders by Delta are subject to all SEC
filings and regulations. Work on future filings has already begun.
As soon as a dividend plan is made effective, both Delta and
American Green will issue a news release detailing how and when the
distribution will take place.
Be sure to visit the company's website
at www.americangreen.com and sign up for the company's
EMAIL ALERTS to stay current on news. In addition, shareholders and
other interest holders are invited to join the conversation about
American Green found
here: https://otc.watch/groups/american-green-inc-erbb/forum/
Shareholders and interest holders may also stay current
with American Green Updates:
Twitter: @American__Green (two underscores), or
Facebook: https://www.facebook.com/americangreenusa
Instagram: https://www.instagram.com/americangreenusa/
Instagram: https://www.instagram.com/magicalnipton/
NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters
discussed in this press release contain forward-looking statements
that involve risks and uncertainties, including those described in
the Company's Securities and Exchange Commission reports and
filings. Certain statements contained in this release that are not
historical facts constitute forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995,
and are intended to be covered by the safe harbors created by that
Act. Reliance should not be placed on forward-looking statements
because they involve unknown risks, uncertainties and other
factors, which may cause actual results, performance or
achievements to differ materially from those expressed or implied.
Forward-looking statements may identified by words such as
estimates, anticipates, projects, plans, expects, intends,
believes, be should and similar expressions and by the context in
which they are used. Such statements are based upon current
expectations of the Company and speak only as of the date made. The
Company undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after the date on
which they are made.
About American Green, Inc.
American Green, Inc., became, in 2009, one of the first publicly
traded technology companies in the cannabis industry. Now, with
over 55,000 individual shareholders, more than any other company in
the cannabis sector, American Green's mission is to lead the
cannabis industry. Leveraging our team of professionals in
cultivation, manufacturing, extraction, wholesale, retail, and
community outreach, we strive to develop sustainable initiatives,
while increasing shareholder value and company profit.
Contact: American Green, Inc. Investor Relations 11011 South 48th St. Phoenix, AZ 85044480-443-1600 X555
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