Published On: Wed, Aug 31st, 2016

American Green, Inc. (OTCMKTS:ERBB) To Shift Focus Towards Arizona Cultivation Facility

American Green, Inc. (OTCMKTS:ERBB) has announced that it has secured the funding and would now be moving forward with a focus on its cultivation facility in Phoenix, Arizona. However, this means that the company’s dispensary plans would be delayed, for at least the next two quarters. The company stated that its fast-track focus on cultivation would create additional unwanted dilution in its stock, at the current time.

ERBB revealed that it expects to have the facility operational, within the next 60-days and is expected to start generating revenues from the facility, within the next 120-days. The company has recently adopted a policy of developing a single revenue stream at a time, which helps it focus on key initiatives and results in improved share value. The chairman of American Green, David Gwyther, stated that changes have been made in the strategy because the company believed that this would bring revenues, faster than any other initiatives.

Mr. Gwyther also reaffirmed that expanding operations in other states and opening of dispensaries has not yet been ruled out. He also revealed that once this has been done, the company can focus on extraction as well. Eventually, this would lead to the development of product lines, including medicinal quality cannabis. Mr. Gwyther was of the view that this would create better margins for the company, rather than just being a wholesale grow operation.

This is the first major change made by Mr. Gwyther, since the position of ERBB CEO, Jonathan Miller, was terminated. At the termination of Mr. Miller’s position, Mr. Gwyther had stated that the time was right to exercise informal restructuring from the top down. He had also stated that the short and long term initiatives of the company were to be aligned with the activities of its top manager. However, the change in direction seems to be the first one of Mr. Miller’s initiatives that has been replaced. It remains to be seen if others would follow.

American Green, Inc. (OTCMKTS:ERBB) did not record a change in its share value, during the August 30 trading session, despite having a trade volume of 40.65 million, to close at $0.0007 per share.

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