For The Earth Announces Sharp Reduction in Dilution Risk and Authorized Share Total
PHOENIX, AZ -- March 21, 2019 -- InvestorsHub NewsWire -- For The Earth Corporation (the “Company” or “FTEG”) (OTCMKTS: FTEG), an emerging vertically integrated CBD producer and retailer, is proud to announce that it will be cutting its total Authorized Shares by 50% to 10 billion and reducing its forecast for capital requirements in half due to recent improvements in operational efficiency and projected growth in returns on invested capital in coming quarters.
“As we navigate this transition into a fully vertically integrated CBD producer and retailer, we want our investors to know that we are committed to avoiding dilution along the way,” noted FTEG CEO Nelson Grist. “We have taken a number of steps to ramp up operational efficiencies, including the establishment of a tailored product logistics facility in Phoenix. We now believe the path to strong revenue growth will be far less capital intensive than we have previously assumed.”
Management notes that recent increases in analyst expectations for growth in the CBD space (now anticipating a twenty-fold ramp in total sales volume over the next 36 months to over $20 billion in North America, according to several prominent forecasts) is also an important driver for the Company’s reduction in capital needs and share authorization. The Company now sees both a more efficient path to initial revenue growth and a steeper growth curve beyond that point.
In addition, management also notes that the Company has no immediate plans for a reverse share split. “Our assessment of our growth potential once CBD production and distribution is underway at full scale suggests no need to reverse split our shares any time on the foreseeable horizon,” continued Mr. Grist. “That said, there are times when a reverse split strategy can be in the long-term best interests of shareholders. So, it’s something we would consider if we believe it will augment our growth prospects. But, at present, we do not have any plans for such a move given the organic growth potential we believe we are tapping into as we ramp up our integrated CBD operations.”
About For The Earth Corporation
For The Earth Corporation is an emerging integrated CBD producer and retailer in the United States. The Company is in the process of establishing a vertical framework that will extend from cultivation to extraction and production to a strategic retail footprint that includes multiple locations in Las Vegas and New York featuring mall kiosks, vending machines, e-commerce, and full store locations serving both the human and pet CBD markets. Two mall leases have been signed recently in Las Vegas, with another vending machine location secured in New York City. The Company plans to expand its New York vending machine penetration by the end of 2019. In addition, the Company has begun early-stage work to establish a state-of-the-art CBD extraction and production facility in Eugene, OR.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See For The Earth’s filings with OTC Markets, which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflect management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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For The Earth Corporation
20 East Thomas Rd.
Phoenix, AZ 85012 USA
Contact: Nelson Grist
Telephone: 602 612-8300