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Players Network (OTCMKTS:PNTV) Continues To Exhibit Upward Potential

Players Network (OTCMKTS:PNTV) Continues To Exhibit Upward Potential
Written by
Jim Bloom
Published on
September 28, 2017
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Players Network (OTCMKTS:PNTV) made strong upward moves in the days and weeks that followed our last coverage of it on July 16. The stock has retracted since, and this can be partly attributed to profit-taking, which is usual in stocks following a sharp upward price move. We see more upside potential in PNTV and in this piece we explain why by examining what we view as catalysts for upward trend in the stock.Before we get into the details, take a look at PNTV’s share price action. PNTV Daily ChartBusinessFor our readers who are coming across PNTV for the first time, a brief background on the company will suffice.PNTV is an American company that was founded in 1993 and is headquartered in Las Vegas, Nevada. PNTV is a diversified company that operates in media and regulated cannabis industries. Through its majority-owned subsidiary Green Leaf Farms Holdings, LLC (Green Leaf Farms), the company holds licenses to operate in Nevada’s medical and recreational marijuana markets. On the media side, PNTV 100% owns and operates WeedTV.com, which it is developing as a marijuana lifestyle media platform that features live broadcasts, news videos as well as other information and entertainment programming.PNTV secures financing, eliminates uncertaintyAt the end of 2Q17 (June quarter), PNTV had a small cash balance, raising the need for the company to shore up its financials to make its dreams come true. If PNTV’s limited cash balance at the end of 2Q17 was a cause for concern for some investors, we can confirm that PNTV has secured financing to enable it carry on with the pursuit of its goals. This financing eliminates uncertainty for PNTV’s management and investors and should pave the way for the stock to move higher – especially as more investors become aware of the elimination of the financing risk.To meet its growing financial needs as it expands operations, PNTV entered into equity financing agreement with Kodiak Capital Group (Kodiak). Under the agreement, PNTV will issue 37.5 million shares to Kodiak in exchange for funding that could be more than $18.7 million. PNTV will release the shares committed to Kodiak over a period of 18 months, and the selling price will range from $0.18 a share to $0.50 a share. This pricing takes into account a 20% discount to the prevailing price of PNTV shares at the time the financing deal was announced.This kind of financing does not always impress existing shareholders because of its dilutive effect. But in the case of PNTV, raising financing in this manner was not only necessary, but also important.PNTV has grown at a faster clip and it needed more capital injection to enable it to keep up the rapid pace of growth. One of the plans that PNTV has is to expand its management team, especially by adding high caliber executives. Attracting top management talents is not only important for PNTV to execute on its development plans with speed, but also bolster its credentials in the regulated cannabis industry.In a strictly regulated industry such the cannabis industry, credentials matter – and can make a competitive difference. In recognition of this fact, PNTV tapped Geoffrey Lawrence, a former senior official in the Nevada State Controller's Office, to be its chief financial officer.Green Leaf Farms is generating revenueRaising capital through ways that cause dilution of the stock is not going to be the order of the day at PNTV. The company’s Green Leaf Farms, which swung into operation immediately after receiving licenses to operate in Nevada’s medical and recreational marijuana markets, has started to generate revenue and the future looks bright.Revenue from Green Leaf Farms should help plug PNTV’s financial needs and reduce the risks that could cause the stock to plunge on concerns arising from issues such as missed execution targets because of limited funds. Revenue from Green Leaf Farms is still small, about $30,000 - $50,000 a month. But that is largely because the business is not fully operational. PNTV expects Green Leaf Farms to bring significantly more monthly revenues once it begins firing from all cylinders.Capitalizing on cannabis advertisingPNTV’s nascent WeedTV is already generating revenue even before it kicks into pull operation. Through WeedTV, PNTV is pitching to cannabis companies seeking publicity, advertising and other marketing support. Initial WeedTV sales are coming through traditional advertising and sponsorships, but the revenue opportunity is huge as PNTV is keen to make WeedTV platform a business-to-business marketplace for cannabis companies. Mark Bradley, CEO of PNTV, stated:

“Within the next 2 quarters, we intend on launching Phase 2 of the WeedTV platform. This release is being developed on a highly scalable platform which will host thousands of channels. We are taking a unique and clever approach to marketing companies in the marijuana space.”

Source:ConclusionPNTV is on the right track and it is only a matter of time before it starts to post substantial revenues – and profits – from its various operations.We will be updating our subscribers as soon as we know more. For the latest updates on PNTV, sign up below!Disclosure: We have no position in PNTV and have not been compensated for this article.

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