LOS ANGELES, June 22, 2017 /PRNewswire/ -- PINEAPPLE EXPRESS, INC. (OTC Grey: PNPL) (the "Company"), a publicly traded company that offers consulting, technology, investments, turn-key property rentals and branding concepts to businesses in the legal cannabis industry, announced today that it has signed two separate royalty agreements concerning its THC.com web domain and THC trademark. The agreements were executed by the Company with two different entities whereby THC.com was licensed for a perpetual royalty fee with guaranteed annual minimums and the THC trademark was licensed on an 18-month engagement.
The Company licensed its THC.com web domain to The Hit Channel, Inc. [THC], a media production and marketing company that has stated it has exclusive use of a proprietary social media and e-commerce technology platform. The Hit Channel agreed to develop the website and pay an initial licensing fee of $150,000, which it has paid, along with a revenue sharing arrangement thereafter equal to 12% of the Gross Proceeds of sales generated from the web domain. Guaranteed minimum payments from The Hit Channel to the Company during the first, second, and third year of the licensing agreement total $800,000 and $400,000 annually thereafter.
The THC.com website is slated to re-launch in Q3 2017.
The Company licensed its THC trademark to Putnam Accessory Group, Inc., (PAG) a leading accessory design, product development, production and logistics company for private label and branded fashion. They specialize in young men's, women's and junior's headwear; cold weather beanies, scarves, gloves, an array of both fashion and technical bags as well as small accessory items. Established in 1997, PAG is a global organization with multiple office locations: Worldwide headquarters in Los Angeles; San Diego, Colorado and Japan showrooms as well as manufacturing offices located throughout Mainland China. The royalty arrangement obligates PAG to pay the Company 12% of sales during an 18-month engagement and also calls for royalty guarantee payments during subsequent renewal terms. In producing apparel and accessories with the THC trademark, PAG will be utilizing the THC style guide created by the Company and the Company will be approving any and all uses of the trademark on a going forward basis.
PAG expects to commence its sales initiatives of THC branded apparel and merchandise by July 2017.
Matthew Feinstein, CEO and Chairman stated, "We are making incredible strides with revenue generation which will lead to long-term and steady growth for our Company and value for our shareholders. We recently finished paying the prior owners of THC.com and the THC trademark. With that transaction now closed we were ready with these exciting licensing deals, which make the most of these assets by putting them in experienced and capable hands so that our management team can focus on our other revenue generation sources we are currently developing."
About Pineapple Express, Inc.
The Company is based in Los Angeles, California. Through our operating subsidiary Pineapple Express Consulting, Inc., we provide capital to our canna-business clientele, lease real properties to those canna-businesses, and provide consulting and technology to develop, enhance, or expand existing and newly formed infrastructures. We intend to create a nationally branded chain of cannabis retail stores under the "Pineapple Express" name as soon as federal laws allow, which will be supported by anticipated Company-owned cultivation and processing facilities, and will feature products from anticipated Company-owned manufacturers. As long as cannabis remains federally illegal our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology, and providing ancillary support services. We believe that our competitive advantages include our wealth of experience, business model, exclusive proprietary technology, and key industry contacts in an industry that is foreign to most. It is our expectation that these factors will set us apart from most of our competitors.
This 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 and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
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SOURCE Pineapple Express, Inc.