PotNetwork
Holdings' CEO, Kevin Hagen, Provides Letter to Shareholders on
2018's achievements and the Year Ahead
FORT LAUDERDALE, FL
-- May 2, 2019 -- InvestorsHub NewsWire
-- PotNetwork
Holdings, Inc. (OTC Pink: POTN)
("the
company") released
today an open "Letter to Shareholders" from its President and Chief
Executive Officer, Kevin Hagen, to provide its investors with an
overview on the Company's performance and developments in 2018 and
what is anticipated for the year ahead.
Dear
Shareholders,
I would like to
begin by thanking you all for your trust in us over the past year
and beyond and I hope that this letter will help underline the
incredible potential that I firmly believe this company has to
become one of the CBD space's most important players.
Record
revenues
I am excited to
report that we closed 2018 exceeding
$25.5 Million in revenues, which was more than 78% ahead
of our audited 2017 annual results. For us, this record growth
validates the strength of our brands, our innovative strategy, and
the ever-increasing consumer demand for our
products.
In 2019, our
overall revenues are anticipated to continue to grow, driven by an
expanding global market for our CBD products, our overall
innovative marketing and product development, and our manufacturing
and supply chain's ability to rapidly and cost effectively respond
to consumer and trade channel desires and needs for high quality
products.
Capturing new
markets
If you follow our
general press releases during the year or attend any of the
innumerable trade shows, expositions and exhibitions we attend, you
know that we are constantly innovating and always expanding
our distribution
footprint.
For example, in
November, you witnessed the introduction of what has become our
highly successful MediPets product line, which opened completely
new channels of distribution and outlets for us in the pet industry
which represents
$69.5 billion in consumer sales in the United
State alone. As a result of the new line, today we are
approaching multiple new points of distribution, from pet supply
stores to veterinary facilities. We firmly believe that our
product formulations for pet wellness are unsurpassed in the
marketplace and have positioned us for strong continued growth in
this new niche market.
We didn't stop with
pets. An
announcement in December confirmed that
Diamond CBD planned to claim a piece of the $46 billion coffee
market with a line of coffee and tea K-Cup capsules, which are
compatible with almost any single cup coffee machine. To
date, the company has sold out almost all of its initial 20,000
production run and is ordering more to satisfy what appears to be an
accelerating demand for a new CBD product category that we are at
the forefront of.
Education efforts
underline a successful year
On "Black
Friday," Diamond CBD
announced plans to sell its
products in shopping malls across America via stand-alone retail
kiosks, carts, and mall retail stores displaying the Diamond CBD
logo and brand. Our efforts here are geared not only to sell
product, but to educate consumers about CBD. We have already begun
such sales initiatives in the South Florida area to refine product
offerings, merchandising and messaging. We anticipate a
gradual metro market rollout in 2019 in Florida, with a leap to
other major metro markets in other states starting in
2020.
Diamond CBD also
launched its own fleet of
mobile sales vans to deepen its penetration in
brick-and-mortar retail outlets in its hometown of Miami. The fleet
provides a level of customer service to retailers that is
unprecedented in our industry. The literal "front door delivery
service" has redefined retailer expectations of what exceptional
customer service and support mean in our industry. To date,
the mobile fleet has installed over 500 self-contained Diamond CBD
product sales centers solely designed for this initiative. Based on
our early success, we have expanded the fleet to a dozen colorful
vans readily visible on the roads and highways of Miami, which has
become an important tool for building our local consumer awareness.
This program is planned to expand to other Florida metro areas in
2019. Inevitably, such a program can further expand in
creative ways to solidify reseller loyalty through initiatives such
as targeted local co-op advertising and promotions to more firmly
seat Diamond CBD as the leading CBD brand in such
markets.
The PotNetwork
magazine sheds a light on our industry
We have always
strived to be an industry leader with high levels of "top of mind"
awareness in the CBD and cannabis industries. So, in 2018, we began
the process to further strengthen this industry position by
exerting renewed effort behind PotNetwork.com, our informational
cannabis industry website, while embarking on the publication of a
hard cover sister magazine, PotNetwork Magazine.
With more than
300,000 page views and in excess of 150,000 unique visitors per
month, PotNetwork.com is the cannabis sector's leading news and
information website. Our recently launched PotNetwork Magazine
offers the only 360-degree view of the cannabis industry that
exists today, from small retail enterprises to publicly traded
companies in the U.S. and Canada. The printed magazine reaches a
diverse readership of individual cannabis industry investors and
entrepreneurs, as well as high-level cannabis industry executives
and CEOs in the U.S. and Canada.
It is a natural
offline extension that promises to delve deeper into the untold
stories of an industry that is expected to
generate $136 billion in retail sales over the next
six years in the U.S. alone. We believe the two together,
PotNetwork.com and PotNetwork Magazine, will further solidify our
industry leadership standing while building brand equity and
synergy across all our efforts.
Cutting edge
vending machines offer new opportunities
At the Consumer
Electronics Show in January, Diamond CBD
announced a partnership with CloudPlay for the development of a
stand-alone retail vending machine to sell select Diamond CBD
products. The machine's prototype was displayed at CES 2019 and its
announcement generated far reaching news coverage across the $292
billion electronic technologies market. Critical to the success of
the machine is the completion of a groundbreaking built-in age
verification technology. The companies plan to have a commercially
marketable version of the machine to be placed into test markets by
CES 2020.
We are adapting to
new regulations
Clearly for any
company, rapid growth in a quickly accelerating, volatile industry
brings significant
challenges.
For the industry, 2018 boughtlandmark
shifts in federal
and state laws and regulations impacting CBD businesses. While most
changes are beneficial it is essential that we remain agile in our
approach to facilitate rapid adaption to an uncertain regulatory
and business environment.
As a result of
these changes governmental attention and oversight of our industry
has increased. A change that we welcome since we believe properly
balanced increased oversight will benefit both the consumer and
legitimate operators like ourselves in the long
run.
You may recall that
in October we had
announced that Diamond CBD had
engaged Washington-based legal counsel to assist us in
applying for FDA product registrations for unique product
formulations for medicinal use. Scientific and other work has
already been initiated in this area and it progresses. As a
result, we have every reason to maintain positive feelings about
continuing our development of a positive relationship with the
FDA.
As managers of your
company, and at all times, we exert all efforts and intentions to
comply with all governmental requirements, but in addition, as
industry leaders, we believe we have an obligation to proactively
nurture all such relationships. One way to help accomplish this
goal is by increasing our overall transparency for the benefit of
our customers, shareholders and the Company alike.
As our company
grows transparency is key to our success
We also believe
that increased investor transparency is necessary. In 2018
we
initiated the process of becoming a fully
reporting SEC company, and as part of the process had the Company's
financial results fully audited by PCAOB member audit
firms.
Initial efforts at
SEC registration proved unsuccessful because of, first, an
auditor's internal problems stemming from an audit in 2015 for an
unrelated company, and secondly, a predecessor company's loss of
some accounting backup records from 2016 needing accounting
comparatives against our results for 2017. Neither of these had any
relevance to the Company currently. Pursuant to strict PCAOB rules,
the effect was that we were prevented from obtaining the necessary
qualifying audit opinions.
2019 is now a new
year, and we have completed a full PCAOB audit of our 2018
financial statements as recently published. In turn, we will now
move forward to become a fully reporting SEC company which we
intend to be by mid-year.
Lastly,
in order to better communicate with investors, customers and
consumers alike, we have begun a broad internal initiative to
improve our overall communications infrastructure and efforts. As
part of this plan, I will be writing letters similar to this one
each quarter to provide you with the most recent updates on our
progress, growth and challenges. For 2019, we have numerous
plans in the works that we believe will further escalate our
growth, shareholder value, and our overall market standing as
well.
In the last two
years, we have watched the overall CBD and cannabis industry
environment change dramatically for the better, with an exploding
consumer awareness and mainstream acceptance of CBD and its
benefits. Such dramatic trends have attracted new competitors to
our space further cluttering consumer choice and making market
"noise". Know that we are committed to maintaining and
expanding our market leadership positions and continued growth in
revenues from our businesses in these exploding markets. We believe
our history has demonstrated that our innovation, high quality
products and approach in these diverse markets is paying
off.
2018
was an exciting year for us. 2019 is looking even
better.
Thank
you.
Kevin
Hagen, President and CEO
About Diamond
CBD, Inc.: Diamond
CBD focuses
on the research, development, and multinational marketing of
premium hemp extracts that contain a broad range of cannabinoids
and natural hemp derivatives. Diamond CBD's team consists of hemp
industry pioneers and natural product experts, chemists, doctors
and scientists, dedicated to producing the finest and
purest cannabidiol
(CBD) oils. The
result is a robust selection considered among the most powerful
natural CBD
oils,
tinctures, edibles, and vape liquids found anywhere. For more
information, please visit its website at www.DiamondCBD.com.
About PotNetwork Holdings, Inc.: PotNetwork
Holdings, Inc. (OTC
Pink: POTN)
is a publicly traded company that acts as a holding company for its
principal subsidiaries, First Capital Venture Co., the owner of
Diamond CBD, Inc., the maker of Diamond CBD products, and
PotNetwork Media Group, Inc., the publisher of PotNetwork News and
PotNetwork Magazine. For more information, please visit,
www.potnetworkholding.com.
Safe
Harbor: Forward-Looking Statements are
included within the meaning of Section 27A of the Securities Act of
1933, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements regarding our expected future financial
position, results of operations, cash flows, financing plans,
business strategy, products and services, competitive positions,
growth opportunities, plans and objectives of management for future
operations, including words such as "anticipate," "if," "believe,"
"plan," "estimate," "expect," "intend," "may," "could," "should,"
"will," and similar expressions are forward-looking statements and
involve risks, uncertainties and contingencies, many of which are
beyond our control, which may cause actual results, performance, or
achievements to differ materially from anticipated results,
performance, or achievements. We are under no obligation to (and
expressly disclaim any such obligation to) update or alter
forward-looking statements, whether as a result of new information,
future events or otherwise.
View source version
on businesswire.com: https://www.businesswire.com/news/home/20181023005241/en/
Contacts
PotNetwork
Holdings, Inc.
Investor
Relations:
1-800-915-3060
investor@PotNetworkHolding.com
Potnetwork (CE) (USOTC:POTN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Potnetwork (CE) (USOTC:POTN)
Historical Stock Chart
From Mar 2023 to Mar 2024