American Green and Delta International Reach $7.73 Million Deal to Create New Opportunities for American Green Shareholders
March 15 2018 - 8:38AM
InvestorsHub NewsWire
American Green
Plans to Manage Nipton for Ten Years and Anticipates Paying Delta
Shares to Qualifying ERBB Shareholders as a
Dividend
Phoenix, AZ --
March 15, 2018 -- InvestorsHub NewsWire -- Today American Green,
Inc. (ERBB:OTC) has announced that it has agreed to
transfer its holdings in Nipton, California to Delta
International Oil & Gas, Inc. for consideration
totaling more than $7.73 Million.
Under the
Agreement, American Green will manage Nipton and associated
projects for 5 years with a 5-year option. Delta will seek to
acquire additional properties subsequent to the Nipton acquisition.
Both parties intend for American Green to manage those properties
as well. At closing, Delta will assume approximately $3.73 Million
in American Green debt, and issue $4 Million in Delta Series A
Secured Convertible Preferred Stock (“Series A Stock”), convertible
to 160,000,000 shares of Delta Common Stock. The Series A Stock
will pay a 5% annual dividend, in stock or cash and will be secured
by a lien against the Nipton properties.
According to
David Gwyther, American Green’s Chairman, “This transaction will
relieve American Green of the on-going expense of improving Nipton.
That responsibility will now fall upon Delta, giving Nipton
the ability to access cheaper capital through a fully reporting
company, including the ability to file registered
offerings.”
“American Green
can now expend less of its energy on capital raising, and focus on
implementing the revenue-generating components of Nipton, and its
other investments, along with many new, and exciting projects on
the horizon,” Mr. Gwyther continued.
“I believe that
this will be a win-win situation for American Green and our
shareholders. After the Series A Stock is fully registered
with the SEC, we plan to pay, as a dividend to qualifying American
Green shareholders, a portion of the Series A Stock. Qualified
shareholders would then be entitled to receive the 5% annual
dividend attached to any Series A Stock shares that they acquire
through the anticipated American Green dividend,” he
concluded.
Delta is a
current and fully reporting company listed on the OTCQB Exchange.
(https://www.otcmarkets.com/stock/DLTZ/quote).
Escrow is expected to close, with completion of all post-execution
document deliveries, within the next 7-10 days. American Green
shareholders should expect more news regarding the final deliveries
shortly after the closing.
Nipton,
established over 100 years ago (www.nipton.com), is one of many towns
throughout the United States that has seen better days; maybe the
mill or factory closed and took its production overseas, or perhaps
the mineral mine went dry. It has been American Green’s
vision (one embraced by Delta) to use Nipton, California as a
revitalization model for other near-deserted small towns across
America while retaining as much of the town’s and region’s natural
charm, a directive that is paramount to American
Green.
It should be
noted here that while some of the initial news stories the Nipton
purchase generated in the press indicated the purchaser’s intent to
immediately begin leasing land to cannabis growers (or even growing
cannabis itself,) that is not and never has been the company’s
intent for the area. Only when, and if, American Green (as manager)
and Delta (as owner) receive full approval from the relevant
controlling authorities, would Nipton move, responsibly, into the
cannabis product development sector. As the Nipton Project develops
in the future, the company will continue to interact with all
state, county, and, hopefully federal, agencies to ensure it is
acting entirely within the requisite legal guidelines in this, and
all other projects the
company undertakes.
Be sure to visit
the company's website at www.americangreen.com and sign up for the
company's EMAIL ALERTS to stay current on news. In addition,
shareholders and other interest holders are invited to join the
conversation about American Green found here: https://otc.watch/groups/american-green-inc-erbb/forum/
Shareholders and
interest holders may also stay current with American Green
Updates:
Twitter:
@American__Green (two underscores), or
Facebook: https://www.facebook.com/americangreenusa
Instagram: https://www.instagram.com/americangreenusa/
Instagram: https://www.instagram.com/magicalnipton/
NOTES ABOUT
FORWARD-LOOKING STATEMENTS
Except for any
historical information contained herein, the matters discussed in
this press release contain forward-looking statements that involve
risks and uncertainties, including those described in the Company's
Securities and Exchange Commission reports and filings. Certain
statements contained in this release that are not historical facts
constitute forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995, and are intended
to be covered by the safe harbors created by that Act. Reliance
should not be placed on forward-looking statements because they
involve unknown risks, uncertainties and other factors, which may
cause actual results, performance or achievements to differ
materially from those expressed or implied. Forward-looking
statements may identified by words such as estimates,
anticipates, projects, plans, expects, intends, believes, be should
and similar expressions and by the context in which they are used.
Such statements are based upon current expectations of the Company
and speak only as of the date made. The Company undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances after the date on which they are
made.
About American
Green, Corp.
American Green, Corp., became, in 2009, one of
the first publicly traded technology companies in the cannabis
industry. Now, with over 50,000 individual shareholders, more than
any other company in the cannabis sector, American Green's mission
is to lead the cannabis industry. Leveraging our team of
professionals in cultivation, manufacturing, extraction, wholesale,
retail, and community outreach, we strive to develop sustainable
initiatives, while increasing shareholder value and company
profit.
Contact:
American Green, Inc.
Investor Relations
11011 South 48th St.
Phoenix, AZ 85044
480-443-1600 X555
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