Freedom Leaf Story Continued Per August 1, 2017 Press Release
Freedom Magazine was our first initiative published October 2014 after the reverse merger because we felt that there was a need for a publication suited for activists, cannabis consumers and medical marijuana patients to learn all about “the good news in marijuana reform.” Freedom Leaf Magazine informs consumers and any non-consumer friends about the cannabis community in a positive light. Initially the Company concentrated on making the magazine of a quality that brings recognition to Freedom Leaf Inc. The second reason is to bring credibility and standing in the Industry. A major business goal with the magazine is to draw, much like a magnet, deal flow by individuals and companies that wish to be acquired by (OTCQB: FRLF) and/or Incubated or Accelerated under our guidance. This has been accomplished; we receive a numerous of offers; deal flows and opportunities every week and select from them the projects that we wish to become involved with.
Although our focus has not been revenue from advertising rather the creative aspects of the magazine since it was important to achieve our goal of being a magnet for deal flow, we are now developing a multi-member advertising sales team for all of our media properties, products, and services as well as for social media management services. At this stage of our development the concentration is on revenue growth from all of our projects.
- The company, Plants to Paper LLC, was the first company that we selected to Accelerate in order to guide them for growth. Plants to Paper, LLC has been assigned two patent pending applications that were filed with the U. S. Patent Office on the production of rolling papers and blunt wraps out of marijuana received by the Patent Office on October 22, 2015. The second is for a no lick: peel and stick for all rolling papers and blunt wraps not just marijuana. Both patents have been secured through the Global Patent Control Treaty to allow the patents to be covered in other countries. Plants to Paper LLC has, through an agreement, to assign 25% of the ownership of the LLC in return for them joining our Accelerator program. Our go to market strategy is to license the marijuana papers and wrap patent to licensed producers in all legal states and countries. We will license the peel and stick rolling papers and wraps patent to any rolling paper manufacturer in WorldWide.
- Our acquisition of the two Spanish websites, lamarihuana.com and www.marihuana-medicinal.com is the start of expanding our global media network within the Cannabis and Hemp Industry. It allows us to offer a broader selection of advertising opportunities to advertisers. This is intended to make our advertising offerings more attractive to the advertiser.
- Freedom Leaf Inc has entered into a Letter of Intent with Green Market Europe L. S., in Spain, see our press release here. The company grows organic hemp in both greenhouses and warehouse buildings, the latter for light deprivation. We are in the process of having our auditor do a complete audit on the financial information of the company and we expect to enter into the final contract within the next 45 days. They have explained that they grow 3 crops a year each crop sells for 350,000 Euros. As with our business model for acquisitions, the majority of the purchase of Green Market Europe L. S. is with treasury stock. The stock would be issued with a restricted legend pursuant to the Securities Act of 1933. We have been asked about the 4.8 million newly issued shares from this acquisition being in new ownership and the subsequent effect on the OTC market. On acquisitions we typically require the owners to enter into a Lock-up and Leak-out Agreement with stock that we issue for an acquisition. These agreements typically restrict the sale of the stock even after any possible holding period requirement has been met. The proposed Green Market Europe L. S. Lock-up and Leak-out agreement will limit the amount of shares that can be sold on a weekly basis as well as makes restrictions on the Ask price. This should aid in maintaining an orderly market within FRLF stock.
- Freedom Leaf has also entered into an agreement to market, to sell and to distribute NuAxon Bioscience large capacity super critical CO2 extraction units. This is an exclusive sales agreement for the Cannabis and Hemp Industry, worldwide, subject to us meeting specific sales milestones. We believe the “Green Rush” demand for high grade cannabinoid extracts, such as CBD (cannabidiol), will only be feasibly met with large capacity super critical CO2 extraction devices that are manufactured to maximize efficiency for the Cannabis and Industrial Hemp sector. You can review the press release here. Our sales personnel are working with over 54 leads all were direct inquiries from the NuAxon website requesting information and/or pricing. We have sold one unit and it was just recently installed and commissioned see press release here.
- Freedom Leaf purchased a unit from NuAxon see press release here. The intention was to use this unit as a production extractor for hemp grown in Nevada and to have for a demonstration unit. For two reasons we have decided to lease this unit: first it will take a number of months to work with a licensed grower of hemp to follow the regulations here in Nevada which limits the income for too long a period and second due to the length of time to manufacture a new unit (25 weeks) there are a number of marijuana licensed facilities that are in need of a unit immediately so we are in negotiations with license holders in Las Vegas to lease the unit which should provide revenue for Freedom Leaf. Part of the lease agreement will require access to showcase and demonstrate the working unit for prospective buyers. We will explore the licensing requirements for Nevada regulations further. If we can acquire a license, we will purchase another unit for our use.
- Freedom Leaf has developed a new product line called hempOLOGY. We have created a temporary website to introduce the brand : www.myhempology.com A press release was issued when we were just starting to create the brand’s two product lines planned for hempOLOGY. We anticipate the first products to be introduced on the New Website will be the Herbal Vapor blends within 30 days. They are formulated with American produced hemp CBD and organically grown Ayurvedic herbs produced by a leader in India’s ancient Ayurvedic herbal medicines. Our special combination of CBD oil with the Ayurvedic herbs is currently a unique product being introduced to the marketplace. The website will be an e-commerce website that will be programmed so that Influencers from Social Media can become affiliate marketers earning commissions from directing their followers to the website. CBD oil in two sizes will also be available under the hempOLOGY brand. Although the skin care line is already formulated, we decided to delay its introduction on the website for a few months allowing the vape products a solid period of time to establish a following. The timed release will keep the marketing efforts from confusing the consumer.
- Freedom Leaf License – We currently have sold three licenses to companies who wish to run their businesses under the auspice of our Freedom Leaf Brand. One in the Netherlands, one that covers Spain and Portugal and one for the State of Florida. The license sells for $250,000 for a country or a state with either $25,000 or $50,000 deposit and remaining balance from payments over approximately 15 months. Pursuant to the agreement they will pay royalties on their income (except for Freedom Leaf products). Besides the income from license fees and royalties the licensees widen our reach to consumers for the magazines, products and other services that we will be introducing. They make the Freedom Leaf Brand stronger. We plan on starting a nationwide tour to educate, to give seminars about the industry as well as to promote the sale of licenses.
Answers to questions that we have been asked by Shareholders of FRLF:
1.) Has the CFO who resigned in June been replaced?
Prior to appointing the CFO we had accountants who are very experienced with SEC regulations manage our financial reporting requirements. We are still using those same accountants now so that it is not necessary to appoint a CFO at this time. We do not expect any issues to arise since the accountants that are managing the financial aspects of Freedom Leaf Inc are experienced with our record keeping.
2.) Are any forward or reverse splits planned for the near future?
There are no plans for either forward or reverse splits in the near or foreseeable future.
3.) Is there any toxic debt outstanding at this time?
We have received convertible note financing in the past. Although it is not our preferred type of financing, we may enter into additional ones. In the past we redeemed one note prior to it being convertible and in another situation a friendly stockholder redeemed a note.
4.) Is Freedom Leaf going to fund business operations from shares that will not be restricted?
According to SEC regulations, we are not permitted to issue unrestricted shares for funding and we follow SEC regulations very carefully so we have no plans to issue unrestricted shares for the funding of business operations.