American Green Inc (OTCMKTS:ERBB) Working On A Turnaround

American Green Inc (OTCMKTS:ERBB) is a name that we've been covering all year here at Insider Financial. It's a company badly in need of a turnaround and one that has greatly disappointed investors. Disappointment is actually an understatement as the company has done nothing but destroy shareholder value. However, now that Jonathan Miller is out the door as CEO, there might actually be some hope for the company.First up, a little background on the company. American Green Inc became one of the first publicly traded technology companies in the medical cannabis industry in the world, beginning in 2009, with the introduction of the ZaZZZ machine for automated, age-verifying dispensing of cannabis-based medicines. Now, with over 50,000 individual shareholders, American Green describes its mission to become "the cannabis & industrial hemp industry, seed-to sale innovator, leveraging our team of professionals, as well as value-added companies and products -- spanning cultivation, manufacturing and extraction, retail, and community outreach. We strive to develop sustainable businesses, while increasing shareholder value, and awareness beyond our industries."Increasing shareholder value is certainly not something the company has been able to achieve, at least under former CEOs Stephen Schearin or Jonathan Miller. In August, the company said that Miller's position as American Green's CEO had been terminated. In his place, Executive chairman David Gwyther became the interim CEO. Gwyther said:

"A change was necessary and the time was right for informal restructuring from the top down, with the goal of better aligning the company's short and medium-term initiatives with the day-to-day activities of its top manager."

The biggest surprise for us is that it took this long to fire Miller. He started off saying the right things, but failed to deliver on any of his promises, much like Schearin. The good news is that ERBB started providing updates after Miller got sacked. ERBB announced that it had consolidated efforts to move forward specifically with its Phoenix, Arizona cultivation facility.American Green said that "the "fast-track" focus on cultivation will temporarily postpone the company's dispensary plans for at least the next two business quarters due to the fact that its current share price would create additional unwanted dilution at this moment in time. The company is confident that the results of this focus put it just 60 days from an operational facility with proceeds to follow in not more than 120 days while serving to reinvigorate shareholder interest in ERBB. The focus on developing one single major revenue stream at a time has now become a regular practice at American Green -- concentrate on key initiatives with clear purpose where shareholder value is at the core." Gwyther said:

"The company rules nothing out in the future including dispensaries or operations in other States. The current route it has chosen is designed to bring revenues through the front door faster than anything else we were involved in. With professionally produced high-quality product and the aforementioned moderations to the original plan, American Green's grow operation will enable the company to focus on phase II - Extraction -- and the development of product lines such as pure extract, popular edibles and medicinal-quality cannabis vape cartridges, all of which are designed to create higher margins in faster growing markets than simply trying to be a wholesale grow operation."

The latest news from American Green is that the new model of the American Green Machine is now available for purchase. One of the major improvements in the new machine version is that every unit will be able to sell ANY product -- from the most regulated to virtually any specialty item. The company has also been able to work with the top level biometric companies in the world to ensure that any purchase fulfilled through the system would be accepted by the world's top banks and governments.Currently trading with a market cap of $386k, it remains to be seen whether ERBB can turn things around. Gwyther has been there through all the troubles. If he's the right man for the job or not, remains to be seen. In looking at the financials, there's not a lot of time to make things happen. So far, the new changes have not moved the needle much on the stock price and that's a major concern. The good news, however, is that there's not much lower the stock price can go. We will be updating our subscribers as soon as we know more. For the latest updates on ERBB, sign up below!Disclosure: We have no position in ERBB and have not been compensated for this article.