(ALGA) American Seed & Oil Company Announces National Medical Marijuana Strategy To Put Company On Top Of Market Opportunity Estimated at $35 Billion
Medical Industry Veteran CEO Steven Rash Issues Corporate Update & Outlook
Dallas, TX / Dec. 15, 2014 / Algae International Group, Inc. (OTC: ALGA), through its operating subsidiary American Seed & Oil Company, today released a corporate updated and 2015 outlook authorized for issue by new CEO Steven Rash.
CEO STEVEN RASH
Steven Rash was announced as the new CEO on November 11, 2014. Mr. Rash is a medical industry veteran with a lengthy list of career accomplishments and experiences well suited to American Seed & Oil’s cannabis business strategy. Mr. Rash has negotiated medical device licensing agreements and health care partner strategic alliances that combined have generated over $650 million in new revenues. Mr. Rash has also managed numerous drug trials and secured multiple FDA approvals. He has signed over 400 managed care contracts and made more than 200 Boardroom presentations at Fortune 500 companies. Mr. Rash served as President and CEO of American BioMed, Vice President of Blue Rhino Corporation and Division President of Maxum Health Corporation. He earlier held numerous Vice President positions at BOC Group, PLC. Mr. Rash has a BS in Business Administration from the University of Delaware and an MBA from Southern Illinois University. Mr. Rash is also a Veteran of the United States Army.
Algae International Group, Inc., through its operating subsidiary American Seed & Oil Company, cultivates cannabis to include hemp and marijuana in the States of Vermont and Maine. The Company is also engaged in the processing of harvested hemp and marijuana plants in order to deliver a variety of health and wellness consumer products in addition to supplying commercial clients. Cultivation and processing operations to date have been concentrated on establishing best practices and validating economic and market opportunity assumptions. The company plans to stair step up the scale of its operations in 2015 to include generating revenues from the sale of processed materials derived from hemp and marijuana.
In addition to cultivation and processing, the Company has entered into a number of partnership agreements to pilot potential health and wellness consumer products that would utilize cannabis cultivated by American Seed & Oil. The objective of the pilot partnerships is to increase potential revenue and margin opportunity by integrating American Seed & Oil cannabis into end health and wellness consumer products whereby American Seed & Oil adds to its proceeds from cannabis sales a share of the proceeds from the end health and wellness consumer product sales. The Company continues to develop additional potential pilot partnerships to add to its existing partnerships.
While not all 50 states have yet established regulations for the cultivation and distribution of medical marijuana, American Seed & Oil will nevertheless pursue a medical marijuana strategy nationwide.
Currently, the health and wellness benefits from medical marijuana are credited largely to two substances found in cannabis, Tetrahydrocannabinol (THC) and Cannabidiol (CBD).
Hemp typically has negligible amounts of THC but is rich in CBD. The therapeutic benefits of CBD suggested by preclinical studies include the treatment of seizure disorders, chronic pain, anxiety, nausea, schizophrenia, diabetes, PTSD, alcoholism, strokes, cardiovascular disease, cancer, as well as other ailments and various conditions.
Marijuana is typically rich in THC, but with limited CBD. Like CBD, THC also has many therapeutic benefits but is better known for its recreational characteristics.
The United States Drug Enforcement Administration (DEA) has differentiated hemp extracts not containing THC from marijuana in an effort to avoid disrupting ‘legitimate industry.’ Accordingly, hemp seeds, hemp oil, hemp lotions and other hemp infused products are readily available at boutique grocery stores, supermarkets and department stores.
In the states where legal medical marijuana policy has not been established, American Seed & Oil will work to establish a market presence by making CBD from hemp available to health and wellness consumers.
BRIEF CORPORATE HISTORY
Algae International Group, Inc. initiated the American Seed & Oil Company operation to pursue the cannabis industry approximately one year ago. The Company had previously been endeavoring to build a business around a process to produce bio-diesel from algae. The bio-diesel market opportunity softened in response to reduced government subsidies. The algae cultivation and bio-diesel processing experience proved useful in developing plans for American Seed & Oil’s cannabis operation.
Through acquisition, organic business development and key contracts, American Seed & Oil Company has established the necessary licenses to cultivate hemp in Vermont and marijuana in Maine. The Company has conducted one complete hemp-growing season and is currently expanding an existing marijuana cultivation operation. Fiber, seeds and oils from the first hemp crop are currently being processed and trialed in a number of different consumer and commercial products.
American Seed & Oil Company has conspicuously included defensible differentiation into its national marketing strategy in order to establish, grow and sustain market share within the cannabis sector which is experiencing nothing short of gold rush attention from entrepreneurs and investors. According to a recent research report published by GreenWave Advisors, the marijuana market within the United States if legalized nationwide could reach $35 billion by 2020.
Central to the Company’s differentiation strategy is producing superior product through research partnerships with recognized universities that can identify, validate and enhance the natural attributes of cannabis beneficial to human health and wellness.
To further differentiate itself and insure long-term operational sustainability, American Seed & Oil is
1.) integrating the local community into its production process and
2.) integrating the customer community into the product development process.
American Seed & Oil is leasing local land and contracting local farmers to tie the Company’s economic success with the local community’s economic vitality. The Company thrives if the local community thrives and the local community thrives if the Company thrives.
Similarly, the Company is engaging the cannabis health and wellness consumer in the development of cannabis infused products. American Seed & Oil is not designing its products. American Seed & Oil’s customers are designing their own products.
American Seed & Oil is integrating the veteran community through out its production process and health and wellness consumer product development cycle. The Company is actively engaging organizations helping to train veterans and put them to work in sustainable and organic farming. The Company is also exploring research project opportunities to evaluate the efficacy of both CBD derived from hemp as well as medical marijuana in the treatment of Post Traumatic Stress Disorder (PTSD).
PENDING CORPORATE UPDATES
The common stock of Algae International Group, Inc., the parent holding company of American Seed & Oil Company is quoted on the OTC Pink Market Place administered by the OTC Market Group. Algae International Group’s common stock trades under the ticker symbol ‘ALGA’ in compliance with OTC Market Group’s ‘Current Information’ financial disclosure standards.
Management is in the process of changing the Algae International Group, Inc. name to American Seed & Oil Company, Inc. in order to better reflect the priority and nature of the Company’s current business focus. Shareholders and perspective investors should expect a name change and ticker symbol change within the next 30 to 90, possibly sooner.
The electronic trading of securities quoted on the OTC Pink Market Place can be enhanced when a company’s stock is eligible for electronic book entry services offered by the Depository Trust Company (DTC). Electronic book entry makes the ‘settlement’ of stock trades faster and more reliable than a ‘settlement’ conducted outside DTC’s electronic book entry system.
The Company has engaged M. Richard Cutler, Esq. of Cutler Law Group to manage the DTC application process. Mr. Cutler has extensive experience in general corporate and securities matters. He is a graduate of Brigham Young University (B.A., magna cum laude, 1981); and Columbia University School of Law (J.D. 1984). Mr. Cutler was a Harlan Fiske Stone Scholar at Columbia and the Managing Editor of the Columbia Journal of Law and Social Problems. Mr. Cutler was admitted to the State Bar of Texas in 1984 and the State Bar of California in 1990. After notable experience at prestigious Texas and California law firms, Mr. Cutler founded the Cutler Law Group in 1996.
The Company’s application process is well underway and DTC eligibility is anticipated within the next 30 to 90 days, possible sooner.
The Company anticipates meaningful sales activity from its core cultivation operations in Vermont and Maine to begin in the second calendar quarter of 2015 (Company’s fiscal year end is June 30) and to continue to increase through out the year. The anticipated revenue for the 2015 calendar year from the core cultivation operations is roughly estimated to reach $1 million. However, the Company anticipates additional revenues from its health and wellness consumer pilot partnerships that have not yet been estimated. The Company has also established a reseller relationship with a foreign hemp cultivator and expects revenue in the 2015 calendar year that has also not yet been estimated. Management believes the revenue potential that might be achieved through reselling for the foreign hemp cultivator could be substantial.
The Company currently has approximately 40 million shares issued and outstanding of which 33 million are closely held. The Company’s current working capital requirements are small and growth is anticipated to be primarily funded by high margin sales. The Company has not experienced any undue pressure in regard to debts associated with past operations. Management is optimistic that debts associated with past operations may be mitigated.
A new website specifically addressing investor interests and facilitating investor and shareholder communications is in the works and expected to be launched before year end.
About Algae International Group, Inc.
Algae International Group, Inc. (OTC: ALGA), through its operating subsidiary American Seed & Oil Company, Inc., is in the business of hemp production in Vermont to supply seed to the expanding hemp farming market, hemp based consumer products market, and hemp based construction material market. The Company is also piloting a number of other cannabis related products. For more information please visit www.americanseedandoil.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.