LOS ANGELES, May 22, 2014 /PRNewswire/ -- Verde Media Group
Inc. (OTC: VMGI)
Dear Valued Shareholders:
VMGI is currently experiencing tremendous growth. As the
CEO of the company, I want to reach out to you and explain how we
are positioning the company during this exciting time and what we
are accomplishing.
To date, 2014 has seen dramatic change and growth in our
business model. With the addition of the Verde Biotechnology
Corp., we've brought a new CEO on board – Dr. Abidi – and acquired
two very promising companies: Butazyme LLC and Beautyject
Inc. The financial projection for the next 5 years is above
and beyond anything VMGI had aspired to previously. We're now
poised to become a globally scaled company within the next 18
months.
We've broken ground on our first Omega-3 project in Asia and have already realized revenue through
a technology transfer fee with Phoenix Energy our joint venture
partner. We've also begun the process of opening an offshore
facility for large-scale CBD oil importation, manufacturing, and
distribution.
Our beauty and cosmetic subsidiary, Beautyject has signed a
contract with a hugely successful marketing and distribution
company. Its patented cosmetic delivery systems are unique in
the industry and are applicable to both commercial and residential
applications and points of sale distribution.
The Agency Division is focused almost entirely on in-house
subsidiaries as we work on due diligence and market research.
Relatedly, we continue to explore the legal marijuana market in
Colorado and beyond. Therein
lies some of the more exciting changes we're making in our plans
for the MJ industry.
Master grower, Ryan McGowan has
closed on the facility on Jason Street in Denver and is continuing with the build-up of
the commercial green-house space. The Agency Division will be
orchestrating the large-scale purchase of all the lighting and
growing equipment through industry partnerships in the Pacific
Northwest. Roles will also shift with VMGI and we will be
bringing on additional advisors in setting our optimal facility in
Asia to most efficiently produce
CBD oil for import to the US. More details regarding these
agency actions will be released shortly.
Omega-3 Technology and Acquisition:
The omega-3 oil industry is projected to reach $35B market in 2020 with 8% growth rate per
annum, with a decreasing supply chain and increasing consumer usage
and knowledge, the time to enter the market is now. The Verde
Biotechnology Corporation (VBC) has acquired a Boston-based Butazyme, LLC. Butazyme has
developed a cutting edge microbial technology for the production of
high value omega-3 oils rich in long chain DHA and EPA fatty
acids.
The VBC business model involves developing and scaling the
technology to semi-commercial stage after which the technology can
be licensed to end industrial users. Towards this end we have
establish a joint venture with Phoenix Energy in Asia.
Commercialization in Asia: We have recently broken ground on
scaling the technology in Asia.
The joint venture with Phoenix Energy "PXE" is fully financed and
involves scaling and co-developing the Butazyme omega-3 technology
to 20,000 liters in phase-I. Butazyme will receive a sum
of $500,000.00 payment for technology transfer and 10%
royalty as licensing fees per annum as part of its contractual
agreement with PXE.
We are confident in achieving our milestones in phase-I so the
project can enter into final commercialization stage in phase-II
that will produce 1000 tons per annum of omega-3 oils. The
commercial production will generate revenues upward of $25M
per annum with the local feedstock secured for 25 years.
Commercialization in US: Our technology development in
Asia will be instrumental in rapid
scaling the technology in US. We have identified potential
feedstock partners and initiated joint R&D with New England's
largest crude glycerol feedstock producer. We are currently raising
financing for scaling the technology using industrial feedstock in
the US. Further updates will be provided shortly.
Medical Cannabis Oil Production:
Verde Media Biotech Division (VMBD) plans to set-up cutting edge
Greenhouse Technologies (GHT) for the production of high value
Cannabis species for the extraction of hemp oil also known as
Cannabidiols "CBD" oils. These medically important oils are in high
demand but the supply chain is limited because of legality in the
production of Cannabis. However, Industrial hemp
products with oils rich in CBD, but negligible amounts of THC can
be legally imported into the United
States after regulated processing.
Extracted and refined CBD oils are used in the health and
wellness industry and currently constitute a $5 billion industry that is growing rapidly each
year. We have recently entered into joint venture negotiations with
an overseas company in Asia to produce CBD oils. Using
proprietary technologies developed by VMBD, highly concentrated CBD
oil will be extracted and prepared for importation and distribution
to the wholesale market.
CBD is a non-psychotropic phytocannabinoid that can be blended
in food products for realizing medical benefits such as chronic
pain treatments, cancer pains and neuro-protection for those
afflicted by multiple sclerosis and epilepsy. The joint venture
would use these selected strains highly concentrated in CBD and is
expected to produce $5M revenues per
annum. The overseas joint venture will complement our plans for US
based production of Cannabis enriched CBD oils. We anticipate
scaling the initial 20,000 sq. ft. facility to 500,000 sq.ft. in a
few years to match the demand with linear increase in revenue
output.
Beautyject Inc. Retail Sales and Marketing:
In April of this year, VMBD entered the medical and cosmetics
industry through its new subsidiary, Beautyject Inc.
Beautyject has perpetual rights for North and South America to manufacture, market,
distribute and sell the first ever needle-free injection technology
specifically adapted to the beauty care and cosmetic markets.
Designed to deliver skin care treatments comfortably, accurately
and quickly, without the use of a needle, the company will provide
clinical grade skin care products to assist physicians and
aestheticians with their procedural skin care needs. In addition,
Beautyject will provide over-the-counter products for customers who
choose not to have professional treatments.
Commercialization: Currently, Beautyject has signed
an agreement with a successful, internationally recognized
distribution group that utilizes far-reaching relationships with
major broadcasting and satellite TV networks. The group has a
proven track record, having successfully marketed and sold more
than $4 billion worth of products to
date.
This agreement has been signed and is moving forward with direct
sales, marketing and distribution functions for its needle-free
kits and products. VMGI will be releasing details about the
agreement in the near future.
The anti-aging market was estimated at $274.5 billion in 2013 and is projected to reach
a trillion dollars by 2025. With increased demand for
multi-feature products with anti-aging and anti-wrinkle properties
driving market growth, Beautyject is in line to reach $18.5 million in top line revenues for its
year-end 2015.
We look forward to continued success throughout 2014 and thank
all of our shareholders for their support of VMGI. We will
continue building value and delivering results as each Division of
Verde grows.
Sincerely,
William F. Veve
CEO
For more information, visit www.verdemediagroup.com, or connect
with the company on Facebook. Twitter- @Verdemediagroup
DISCLAIMER: CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING
STATEMENTS
The results described herein cannot be guaranteed. This release
contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E the
Securities Exchange Act of 1934, as amended and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Statements in this news release other than statements of historical
fact are "forward-looking statements" that are based on current
expectations and assumptions.
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SOURCE Verde Media Group Inc.
