To say American Green (OTCMKTS:ERBB) shareholders have suffered is an understatement. Over the past few years, shareholders have been lied to time and again. Shareholders have had to deal with failed acquisitions/joint ventures/deals, massive dilution, losses, and ZaZZZ machines being returned. Thankfully the architect behind all of this, Stephen Shearin, was booted out the door in November. All eyes are now on former CFO and new CEO Jonathan Miller to turn things around for ERBB in 2016. Miller laid out his vision for ERBB when he was given the job.
"Our Shareholders have experienced a rough ride this past year. However, the direction of American Green has changed and the initiatives we started in Q4 2015 will begin to bear fruit early in 2016 and will be the model for our growth in coming years. Investing in assets and improving those assets while deriving income from those assets is the cornerstone to our future. These investments position us 'closer to the plant,' as we say. We can operate within state guidelines and position ourselves for changes in the regulatory environment that should allow the Company to directly obtain production, extraction, medical and retail licenses in the future."
Among the things shareholders can look forward to in 2016 include its Phoenix-based indoor medical marijuana cultivation site. ERBB had recently announced that the building will house a 12,000 square foot medical marijuana cultivation facility intended for use by its licensed tenant-client -- Natural Herbal Remedies. Construction of the facility is already underway and American Green Premium marijuana products will be available to authorized Arizona buyers this coming year. The company expects to post revenue with profitable margins in 2016.Furthermore, American Green-branded Premium Joints went on sale just before New Year's Day at the New Hope Wellness Center in Edwards, Colorado and Herbal Elements in Eagle Vail, Colorado. This week they'll go on sale in Oregon. The American Green-branded product line is consistent across ERBB's entire dispensary network, providing premium flower that discerning clients will come to expect. Regional specialties and extract products are also planned for introduction in the very near future.ERBB plans for each venture in Oregon, Arizona, and Colorado to operate under similar structures and policies designed specifically to fall within the scope of state and local regulations. Expansion of the American Green brand includes standardization of high-quality products, procedures, and methodologies.In addition to the above, American Green is hoping to finally get its ZaZZZ machines operating properly. ERBB has begun working to redesign its ZaZZZ cannabis vending operation. In response to feedback from dispensary vendors and customers, American Green has begun work to re-tool its current automated vending program known as ZaZZZ. Each ZaZZZ machine will be sent back to company headquarters in order to facilitate the program's makeover. CEO Jonathan Miller said:
"The entire program needs to be redesigned in order to ensure the company can generate a reasonable return on its investment. We believe the Company knows which course corrections to make in order to achieve that goal. There is definitely a future in vending marijuana successfully. Verified vending outside of licensed establishments will become a reality as state and federal regulations change. In the meantime, we will rebrand the machines The American Green Machine and use them as custom delivery solutions in the dispensaries that we manage and others in our network that can carry American Green products."
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ERBB has made a number of missteps in the past that have cost shareholders dearly. However, ERBB is a hot name in marijuana space and it can really get going if new CEO Jonathan Miller delivers. Combine this with the positives taking place in the marijuana industry and American Green could make shareholders some green money in 2016. Don't miss out on our updates on ERBB and our other hot stock picks, sign up below!
Disclosure: We have no position in ERBB long or short and have not been compensated for this article.
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