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Marijuana-Stocks-weed money wad (1)

Towards the end of June, the S&P 500 had been up almost 20% over the course of 12 months. With a historical rise on average of around 7% annually, the new average is something investors are excited about. If this looks like solid gains than you’re right, but take a look at the gains for the marijuana industry and you’ll be ecstatic. In some instances this industry has doubled or even tripled its value over the past 12 months.

Why are these stocks doing so well? One of the main reasons behind it is the rapidly changing public opinion on the plant. With more research than ever being conducted, the public is learning the truth behind marijuana’s health benefits. A 2016 poll from Gallup showed that favorability toward the legalization of marijuana hit an all time high of over 60%. As opinions get better, so do sales. Investors project the sales from U.S. legal marijuana will top $6.9 billion in 2016 and are expected to more than triple by 2021. All of this leads to a bright future for cannabis related investments.

Marijuana stocks are more profitable than ever as sales continue to grow. This does not mean one should forgo their usual research, if anything one should be extra careful because it is a new industry. That said, this is the time to diversify a portfolio to get some green with some green. Here’s four stock picks that should see profit this year.

1. Aphria
This is one of many Canadian medical marijuana producers and retailers as the Canadian marijuana industry has been around for much longer than its U.S. counterpart (legally that is).

Aphria (NASDAQOTH: APHQF) has been profitable for investors for an astounding five consecutive quarters. A new project is seeing the company enlarging its growing capacity to a 1 million square feet to help produce an estimated 75,000 kilograms of cannabis per year.

2. Canopy Growth Corp.
Yet another Canadian marijuana stock; this company currently has the highest market cap. Canopy Growth Corp. (NASDAQOTH: TWMJF) is on track to be profitable for this year. This company has benefitted from exporting some of its production overseas in places where cannabis is legal medically.

Canopy Growth also acquired Mettrum Health (which boosted its customer reach within Canada). In addition, they recently purchased 472,000 sq. ft. for its headquarters to expand grow capacity.

3. MedReleaf
This is another profitable stock called MedRelead (NASDAQOTH: MEDFF) (TSX:LEAF), which was the largest North American IPO to date. MedReleaf, like Aphria and Canopy Growth is a producer of medical cannabis for Canadian patients. The company recently raised over $74 million dollars from its IPO to fund its expansion in a facility located in Bradford, Ontario. Once the new facility is completed, MedReleaf says it will be capable of 35,000 kilograms of annual cannabis production.

4.Scotts Miracle-Gro
This emerging marijuana stock Scotts Miracle-Gro (NYSE: SMG) is expected to generate high profits for the 2017 fiscal year. The majority of Scotts’ business comes from various traditional lawn and garden care products. The other portion of business comes from hydroponics. As the traditional part of Scotts’ sees various ups and downs according to weather etc., their hydroponics section is growing very quickly up 17% from last year.

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Marijuana-Stocks-20s

Unless you’ve been hiding under a rock somewhere, you’re probably aware that the marijuana industry is booming. With more than half the U.S. legalizing medical marijuana, several legalizing recreational marijuana, and Canada recently making recreational marijuana legal nationwide, demand is greater than ever. Promising marijuana-based drugs could be on the market in the near future.

There are several reasons to think that marijuana stocks still have plenty of upward potentials. But what are some marijuana stocks to consider for investors who have yet to jump on the bandwagon? Here’s why Scotts Miracle-Gro Company (NYSE: SMG), GW Pharmaceuticals (NASDAQ: GWPH), and Canopy Growth Corporation (NASDAQOTH: TWMJF) are three marijuana stocks you could buy if you’ve never bought a marijuana stock before.

These Marijuana Stocks Be The Future Of The Industry

Scotts Miracle-Gro

Scotts Miracle-Gro doesn’t cultivate marijuana. It doesn’t develop marijuana-based drugs. Technically speaking, Scotts Miracle-Gro isn’t a marijuana stock. But it might as well be.

Much of Scotts’ focus and fortune is tied directly to the marijuana industry. Scotts Miracle-Gro provides key supplies for marijuana growers, including fertilizers, hydroponics, and lighting. The company’s business currently skews toward small recreational growers, but Scotts also has a solid presence among professional growers and a strategy to build its relationships with larger players.

Of course, not all of Scotts Miracle-Gro’s business is connected to marijuana; that’s what makes it a compelling choice for an investor who is new to investing in marijuana stocks. Buying Scotts Miracle-Gro shares allows you to participate in the growth of the marijuana industry, but with more stability than you would get buying a micro-cap marijuana stock.

GW Pharmaceuticals

GW Pharmaceuticals is, for now at least, is one of the biggest biotech specializing in the development of marijuana-based drugs. The company has one cannabis product on the market already in 16 countries outside of the U.S. — the muscular-sclerosis spasticity drug Sativex. Yet, the greatest opportunity for GW Pharmaceuticals lies in a cannabinoid drug that hasn’t been approved yet.

The biotech reported positive results last year from late-stage clinical studies evaluating cannabidiol drug Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS). GW Pharmaceuticals is on track to submit Epidiolex for U.S. regulatory approval soon and for European approval later this year.

Canopy Growth Corporation

With Canada recently passing legal marijuana Canopy Growth Corporation could be a good way for investors to profit from the anticipated growth in the Canadian marijuana market. Canopy Growth already ranks as one of the largest providers of medical marijuana in the country.

Just how big could the Canadian marijuana market be? Professional services firm Deloitte released a report that projected the retail marijuana market in Canada could grow to $8.7 billion annually. To put that into perspective, Canopy Growth’s revenue last year was only around $30 million.

Canopy Growth should be in a great place to become an authorized provider of recreational marijuana. The company has already made several acquisitions. It wouldn’t be surprising to see Canopy Growth buy smaller operations to expand its presence in Canada and other countries.

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Marijuana-Stocks-Cannabis-gavel

U.S. Attorney General Jeff Sessions is reportedly trying to build support to go after companies that sell marijuana in states that have legalized the drug. However, while the executive branch contemplates fighting marijuana, the legislative branch is taking the opposite approach.

Last week, several U.S. senators introduced legislation that would end federal prohibition of medical marijuana. If this bill ultimately becomes law, one thing is a near certainty: Marijuana stocks will soar.

Senators Corey Booker (D-New Jersey), Kirsten Gillibrand (D-New York), and Rand Paul (R-Kentucky) introduced the Compassionate Access, Research Expansion and Respect States, or CARERS, Act of 2017. The primary goal of this bill to “extend the principle of federalism to state drug policy.” That basically means let the states make their own decisions instead of having the federal government interfere when it comes to legalization of medical marijuana.

The bill would change the Controlled Substances Act in several ways. It would reschedule marijuana and THC (the primary psychoactive chemical in marijuana) as Schedule 1 drugs instead of their current Schedule 2 status. Schedule 1 drugs are illegal under federal law because they have high abuse potential, no medical use, and serious safety concerns. Schedule 2 drugs are not illegal but are controlled because of their high potential for abuse.

This legislation would also specifically exclude cannabidiol (CBD) from the definition of marijuana in the Controlled Substances Act. CBD is a chemical in marijuana that doesn’t have the same level of psychoactive effects as THC does.

In addition, the CARERS Act would eliminate many of the restrictions currently in place that limit the ability of banks to serve companies that sell marijuana-related products. The bill also would require the U.S. Food and Drug Administration to make it easier for companies to research and develop cannabinoid drugs.

Stocks set to take off
Passage of the CARERS Act would undoubtedly cause stocks of U.S.-based marijuana growers to skyrocket. Stocks of companies that maintain that they’re already operating in compliance with federal marijuana laws, such as Medical Marijuana, Inc. (OTC: MJNA), provide risk-reward scenario for seasoned traders. Medical Marijuana, Inc. markets CBD products that it makes from parts of marijuana that are currently excluded from the Controlled Substances Act.

However, these wouldn’t be the only stocks to benefit if the legislation becomes law. Biotechs that develop marijuana-based drugs could also rise if restrictions on research and development of cannabinoids in the U.S. are eased. Currently, companies like GW Pharmaceuticals (NASDAQ: GWPH) conduct their research outside of the U.S. because of tight restrictions.

Good news for companies that grow medical marijuana would also likely be good news for another stock — Scotts Miracle-Gro Company (NYSE: SMG). Scotts Miracle-Gro is the largest provider of supplies that marijuana growers use. The company sells fertilizers, lighting, and hydroponic supplies that are critical in growing marijuana.

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AeroGrow Reports that The Scotts Miracle-Gro Company Has Exercised its Current Outstanding Warrants, Establishing an 80% Beneficial Ownership Position

  AeroGrow International, Inc. ( OTCQB : AERO )
  • Exercise generates $47.8 million in cash for the Company
  • Board of Directors declares a $41 million, $1.21 per share distribution
  • $6.8 million retained to retire all debt, fund working capital and growth

AeroGrow International, Inc. ( OTCQB : AERO ) (News) (“AeroGrow” or the “Company”), the manufacturer and distributor of the world’s leading indoor gardening systems — the AeroGarden line of Smart Countertop Gardens™ — announced that SMG Growing Media, Inc. (SMG), a wholly owned subsidiary of The Scotts Miracle-Gro Company, exercised all of its outstanding warrants to acquire common stock of AeroGrow on November 29, 2016.

The warrant exercise generates $47.8 million for AeroGrow, in exchange for 21.6 million shares in the Company to be issued to SMG, bringing the total outstanding shares in AeroGrow to approximately 33.9 million beneficial shares. The warrant exercise price was established by a formula negotiated during SMG’s 2013 purchase of approximately 31% of the Company’s common shares.

The Board of Directors of the Company was restructured effective November 29 to reflect SMG’s new ownership position. As part of these changes, Board member and CEO J. Michael Wolfe, and Board member Michael S. Barish resigned their Board seats, as of November 29. Mr. Wolfe will remain in his capacity as President and CEO of the Company. Jack J. Walker and Wayne Harding will remain on the Board as independent directors. Chris Hagedorn, GM of The Hawthorne Gardening Company, a wholly-owned subsidiary of ScottsMiracle-Gro focused primarily on the areas of indoor and urban gardening, will assume the position of Chairman of the Board, replacing Mr. Walker who has served in this capacity since 2008.

Two new Board members were appointed effective November 29, Peter D. Supron and Albert J. Messina. Mr. Supron, an 18-year veteran at The Scotts Miracle-Gro Company, is currently the Chief of Staff to the President and COO of ScottsMiracle-Gro, and has been a non-voting observer on AeroGrow’s Board since 2013. Mr. Messina is the Finance and Strategy Lead at The Hawthorne Gardening Company and brings a background in corporate development, strategic planning and investment banking to the Board.

Of the $47.8 million received by AeroGrow following the exercise of the warrants:

  • The new Board immediately declared a $41 million distribution ($1.21 per share) to shareholders of record on December 20, 2016, with a payout date for the distribution of January 3, 2017.
  • $6.8 million will remain in the Company to fully repay the working capital loan to ScottsMiracle-Gro and provide working capital to fund operations and growth.

“When we first signed our deal with The Scotts Miracle-Gro Company in April of 2013 I described that as a transformational event for AeroGrow. That transformation continues now with another red letter day for our company,” said J. Michael Wolfe, President and CEO of AeroGrow. “We’ve come a long way over the past three years — effectively tripling our business, significantly improving our bottom line, greatly expanding our distribution and launching a series of innovative new products.

“The capital generated by the warrant exercise allows us to be instantly debt-free and provides the working capital to fund our anticipated growth for the foreseeable future. We’ll use that capital to accelerate the development of several exciting new products, further expand existing distribution channels, open significant new markets in North America and in other international markets, and fund increased advertising media to generate product, brand and category awareness. In addition, shareholders will receive a very attractive distribution.

“At this inflection point in AeroGrow’s history, I’d like to thank the many stakeholders in our company who have supported us over a long period of time. I’d particularly like to acknowledge Chris Hagedorn, Pete Supron and other key players with The Scotts Miracle-Gro Company who have been so instrumental in helping with our turnaround. I’d also like to thank Mike Barish, who invested in the company early and lent his significant expertise on our Board of Directors for many years. And I’d like thank our key retail and online selling partners along with an incredibly supportive vendor community who have helped our company gain traction and now begin to thrive. And finally I’d like to recognize an exceptional team of associates here at AeroGrow who have worked tirelessly to help build our company.

“In closing, I couldn’t be more excited for our future and the opportunities that this creates for AeroGrow. We stand poised — and well-funded — to seize the opportunities created by our highly innovative and expanding technologies.”

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A few months back….Like eight months ago…we highlighted a very real and very important part of the Marijuana Industry that no one was paying attention to. But taking a 30,000-foot view, it made total sense to us. As investors were scrambling to grab cheap, emerging marijuana stocks that were just putting a business plan together, who was already established in the “growing industry”? Think back to grandma’s garden. What did she use to get those beautiful flowers and raspberries off the bushes? Miracle Grow!

Marijuana cultivation is very real and very relatable as far as opportunity goes. Sure lights and grow boxes are great but without the actual plant, we’ve got nothing. So growing is obviously the first stage you need in order to even have an industry like marijuana. Case and point, and why I bring this up: I caught an article from CNBC (http://www.cnbc.com/2016/08/04/scotts-miracle-gro-is-a-marijuana-play-says-jpmorgan.html) this afternoon that apparently was “breaking news” about Scott’s Miracle Grow (SMG) becoming a huge opportunity for the marijuana space according to JPMorgan (rolls eyes).

Well I hate to break it to everyone but we called this one back in December of 2015. December 15th to be exact. This was long before anyone had been reporting on blue chip companies even getting involved. And definitely long before Microsoft started “making a play at marijuana.”

The proof? You can reference the link below. Bottom line is, CNBC, I hate to say it, but we broke it right here first on MarijuanaStocks.com and since then, SMG shares have increased about $15 per share. Was it all from the marijuana industry? Who knows, but we’d like to think it has something to do with it, and we’d like to think that our subscribers can read between the lines and connect the dots we lay out. People need to become more educated on this space and think outside the box…which is exactly what we’ve aimed to do from day one.

SMG isn’t the first company we’ve beat the pundits on the street to or CNBC to, just take a look at my coverage on social for any of the companies in the Biotech space like GWPH, CARA, ZYNE, INSY, and ABBV, you will see that we were weeks ahead of some of the Gurus out there. We get it, we understand that this isn’t your space and you probably think it’s all Penny Stocks. Problem is we are the boots on the ground, MarijuanaStocks.com wants to find the “Gold” first and by the time you “break the news” you’re just buying our subscribers shares… So Thank you!

Marijuana Growers Look For Self Containment
Is this where investors should be looking for the next boom?

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DigiPath Inc. (DIGP) Looks to Solve the Cannabis Industry’s ‘Dirty Little Secret’

A recent New York Post article titled “The marijuana industry has a dirty little secret” highlighted the growing problem of pesticides and other contaminants after a string of recently recalled products that were found to be contaminated. The problem is partially due to the haste of creating capacity following the legalization in Colorado, although the state government does share some of the blame for failing to implement effective regulations when initially setting up the program.

Other states are learning from this mistake and have published pesticide rules, albeit for some after they had already legalized use. Great effort has gone towards the marijuana legalization movement, and the fact that states are willing to admit that improvements are needed shows that people are willing to do what it takes to make the movement succeed in an impartial way just like any other legal, taxed industry.

Oregon for example has approved 250 pesticides that can be used safely in unlimited quantities to address a wide range of potential problems while growing. Among them are Nature’s Care Garden Disease Control, a fungicide produced by Scotts Miracle-Gro Co. (NYSE:SMG) and Grandevo PTO, an insecticide manufactured by Marrone Bio Innovation (MBII).

Nevada, as a second example, requires that an independent laboratory perform a series of tests on usable marijuana, including moisture content, potency, terpenes, foreign matter inspection, microbial screening, mytotoxin screening, heavy metal screening, and pesticide residue analysis. Many states consider Nevada’s testing requirements to be the gold standard in the industry and are looking to model their own regulations with the same stringency.

This is especially important since the federal government has taken a hands-off approach, as they do have the authority to intervene at any time if the matter was considered a public health issue. The EPA is in charge of the use of pesticides on crops, but as the New York Post article points out, “As of February, no state had submitted a complete application for pesticides to be used to grow marijuana, according to the EPA.”

A First Hand Perspective of the Problem

Recently, Cannabis Financial Network interviewed Todd Denkin, President and CEO of DigiPath Inc., who operates a marijuana testing lab Las Vegas, to get his thoughts on the industry. The below video provides some great insights into this troublesome trend and what we can expect going forward.
Digipath Corp CEO Interview on CFN Media – http://www.cannabisfn.com/cfnvideo/?id=c7sO1qG5

“Cultivators want to know what the rules are and want to play by the rules,” said Todd Denkin, CEO of DigiPath Inc. to the New York Post, describing the industry’s take on the problem. “If you can’t grow a clean product, you’re going to go out of business.”

The $850M Cannabis Testing Market

GreenWave Advisors, an independent research and financial analyst firm, believes that the cannabis testing industry could reach $866 million in size by 2020, if federal prohibition on cannabis is lifted. In its report, titled ‘Marijuana Lab Testing: An In-Depth Analysis of Investing in One of the Industry’s Most Attractive Plays’, the firm outlines several reasons why the cannabis testing industry is poised to grow and why it represents a great opportunity for investors.

The report’s primary points included:

– Cannabis testing labs appear to be highly scalable with opportunity for significant margin expansion, as other high margin businesses, (data analytics and consulting) contribute more to the mix of revenues. Operating leverage should translate to attractive Free Cash Flow yields abetted by recurring revenue streams.

– With many players currently jockeying for position and new entrants appearing as each state moves forward with legalization, the lab testing market will become increasingly saturated. Profitability and survival will depend upon technical prowess and adequate capitalization.

– The lab businesses that are best positioned to expand market share beyond their initial geographic confines into additional states or regions will provide the most compelling opportunities for investors seeking the prospect of long term growth or other exit strategies such as eventual absorption by established larger cap suitors.

The analyst firm projects revenue of $553 million for lab testing alone if the U.S. legalizes cannabis on a federal level. When adding in related services, such as data analytics and consulting, the revenue potential could surpass $866 million. The data troves collected through the testing process could become an increasingly valuable asset and generate substantial revenue for the most accomplished laboratories. This data could be used to determine specific genetic attributes of targeted cannabinoids and assist with maximizing medicinal benefits.

DigiPath Capitalizes on Cannabis

DigiPath is a premier play in the burgeoning cannabis testing industry with a Las Vegas-based laboratory that’s already generating tangible revenue.

Nevada waited 15 years after legalizing medical marijuana to permit sales in dispensaries – which began in July 2016 – as it worked through concerns over pesticides. Currently, the state has some of the strictest testing regulations, with only 22 approved pesticides in low levels. All cannabis must be tested by independent labs before they are approved for sales and the products are destroyed if unapproved pesticides are found on them.

By starting in Nevada, DigiPath has built up an operation that follows the industry’s best practices to meet the strictest guidelines in the country. Management plans to expand these operations into other states in the future, while bringing along these best practices to help reassure its customers that the testing results are reliable and valid. The company has also worked alongside regulators to help draft testing requirements across the country.

With upcoming elections in November, Nevada could also legalize recreational marijuana, which could open the door to a significantly larger market given that Las Vegas is among the country’s most popular tourist destinations.

Unlike CannaGrow Holdings Inc. (CGRW), which provides consulting services to growers, DigiPath’s focus on the cannabis testing industry represents a play on government-mandated revenue that’s still tied to the sale of medical and recreational marijuana.

Looking Ahead

DigiPath is an emerging leader in the cannabis testing industry. According to GreenWave Advisors, this industry could reach over $850 million by 2020, making it an attractive destination for investors interested in the space. The industry’s growing problem with pesticides – as highlighted by The New York Post – could mean stricter regulations and that’s an area where DigiPath has excelled in the State of Nevada.

For more information, visit the company’s website at www.digipath.com.

Legal Disclaimer

Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Important factors that could cause these differences include, but are not limited to, the Company’s need for additional funding, the demand for the company’s services, governmental regulation of the cannabis industry, and the company’s ability to execute its business plan. Emerging Growth LLC dba TDM Financial, which owns CFN Media, is not registered with any financial or securities regulatory authority, and does not provide nor claim to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CFN Media, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: CFN Media

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Primco Management, Inc. Announces LOI With Solgate, Inc.

 Primco Management, Inc.(“Primco” or the “Company”) (PMCM), a versatile holding company, with several subsidiaries, announced today that in the follow up to the recently announced new corporate strategy and business development plan, the Company has entered into a Letter of Intent to acquire a Canadian solar power panels manufacturing company, Solgate, Inc. (“Solgate”) through a new subsidiary. To complete the intended acquisition Primco and Solgate will have to go through extensive due diligence and a corporate restructuring process, which may take several months.

“Few would argue that solar power generation is the future of clean energy, and we are proud to team up with Solgate, a company at the forefront of clean energy technology development and manufacturing” – said David Michery, CEO of the Primco Management. He further stated — “Even though there will be a lot of work ahead to implement our plans, we hope that added exposure and the valuation multiples of US public markets will boost the ability of Solgate to further develop its operations, and lay the foundation for other acquisitions in the clean energy field.” Vadim Lyubchenko, the CEO of Solgate, added — “We are looking forward to bringing the value of our well-established business to the shareholders of Primco and, pending the implementation of our acquisition, will be working in close cooperation with the management of the Company to take advantage of the various opportunities to further grow our business, including added reach into the US commercial and government markets, which are actively switching to cost-saving energy generation.”

About Primco Management Inc.

Through its wholly-owned subsidiaries, ESMG Inc., Top Sail Productions and D & B Music, Inc., the Company operates as an integrated entertainment company with interests in music and film production and distribution. Primco also operates in various aspects of the medical marijuana and real estate industries.

About Solgate, Inc.

Solgate, Inc., (www.solgate.ca) located in Ontario, Canada, is a privately owned research and development and manufacturing company, which is the first large-scale, fully automated solar power-generating panels manufacturer in its province. The company specializes in commercial and industrial solar panel manufacturing as well as develops custom solar power generation applications.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. No past revenue or other performance can guarantee the same or better performance in the future. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact:
Primco Management, Inc. (PMCM)
2211 Elliott Ave.
Suite 200
Seattle, WA 98121 United States
206-455-2940
contact@primcousa.com

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marijuana stocks

Primco Management, Inc. Announces Corporate Strategy Update

SEATTLE, April 22, 2015 (GLOBE NEWSWIRE) –Primco Management, Inc. (“Primco” or the “Company”) (PMCM) (PMCMD), a versatile holding company, which currently operates subsidiaries in medical marijuana, real estate management and multi-media fields, today announced the plan of corporate restructuring and development, aimed at streamlining its business, increasing shareholder value and bringing in additional sources of revenue. The Management of the Company has performed in-depth research and had extensive consultations with industry experts, merger and acquisition specialists and financiers, which lead to the adoption of the updated business strategies for its existing subsidiaries as well as development of new ones in partnerships with cutting-edge enterprises.

“We are pleased to make our shareholders aware that Primco is actively working on several new and exciting business development projects, which we expect to start unfolding in the near future,” said David Michery, CEO of the Company. He continued, “We are carefully following the fast-moving regulatory environment in the medical and recreational marijuana fields and are planning to be in the forefront of that core business and its newest area – auxiliary applications, such as payment processing and other services to the growers, distributors and users. Our real estate subsidiary is working on several projects related to clean energy generation and management while our multi-media subsidiary is actively restructuring its activities in the view of the realities of the digital age. Overall we plan to deliver to our shareholders a more lean, revenue and profit-oriented Company in the near future and are working hard to attain that goal.”

About Primco Management Inc.

Through its wholly-owned subsidiaries, ESMG Inc., Top Sail Productions and D & B Music, Inc., the Company operates as an integrated entertainment company with divisions in music and film production and distribution. Primco also operates in various aspects of the medical marijuana and real estate industries.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. No past revenue or other performance can guarantee the same or better performance in the future. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact:
Primco Management, Inc. (PMCM)          
2211 Elliott Ave.          
Suite 200          
Seattle, WA 98121 United States          
206-455-2940          
contact@primcousa.com

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Form 10-K for PRIMCO MANAGEMENT INC.


15-Apr-2015

Annual Report

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCERTAIN STATEMENTS IN THIS ANNUAL REPORT ON FORM 10-K (THIS “FORM 10-K”), CONSTITUTE “FORWARD LOOKING STATEMENTS” WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1934, AS AMENDED, AND THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 (COLLECTIVELY, THE “REFORM ACT”). CERTAIN, BUT NOT NECESSARILY ALL, OF SUCH FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “BELIEVES”, “EXPECTS”, “MAY”, “SHOULD”, OR “ANTICIPATES”, OR THE NEGATIVE THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY, OR BY DISCUSSIONS OF STRATEGY THAT INVOLVE RISKS AND UNCERTAINTIES. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF MASS HYSTERIA ENTERTAINMENT COMPANY, INC. (“THE COMPANY”, “WE”, “US” OR “OUR”) TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. REFERENCES IN THIS FORM 10-K, UNLESS ANOTHER DATE IS STATED, ARE TO DECEMBER 31, 2014.

Since our incorporation on October 14, 2010, in Delaware, we have been a development stage company. We began by offering a general array of real estate management services, which continued until January 31, 2013. We then redirected our real estate focus to seeking out properties which had obtained the necessary building permits but which needed finance to start construction. In addition, as of January 31, 2013 with our acquisition of ESMG Inc. we added an entertainment related business segment. Our performance can be significantly affected by changes in general economic conditions and, specifically, shifts in consumer confidence and spending. Additionally, our performance can be affected by competition. Management believes that, as both industries continue to consolidate, competition with respect to pricing will intensify. Such a heightened competitive pricing environment will make it increasingly important for us to successfully distinguish ourselves from competitors based on quality and superior service and content and on our operating efficiency. We are currently not aware of any other known material trends, demands, commitments, events or uncertainties that will have, or are reasonable likely to have, a material impact on our financial condition, operating performance, revenues and/or income, or results in our liquidity decreasing or increasing in any material way.

The Company was incorporated on October 14, 2010, under the laws of the State of Delaware. The Company is a real estate management and property development company and, through its wholly-owned subsidiaries, Top Sail Productions, LLC and ESMG, Inc., produces and distributes recorded music and intends to co-produce for distribution lower-budget motion pictures.

In February, 2014 the Company expanded its operations to include the leasing and property management of facilities for the legal cultivation of medical cannabis, and the acquisition of and/or entering into joint ventures with third parties involving the planning, staffing, management and operation of legalized medical marijuana dispensing and cultivation.

Going Concern

Our ability to continue as a going concern is dependent upon our ability to obtain the necessary financing to meet our obligations and repay our current and future liabilities when they become due until such time, if ever, that we are able to generate sufficient revenues to attain profitable operations. We have experienced losses and negative cash flows from operations since inception and, at December 31, 2014, we had a working capital deficit of $9,779,354 and an accumulated deficit of $12,761,821. The report of our independent registered public accounting firm on our financial statements for fiscal 2014 and 2013 contained an explanatory paragraph regarding our ability to continue as a going concern. There can be no assurance that acceptable financing to fund our ongoing operations can be obtained on suitable terms, if at all. If we are unable to obtain the financing necessary to support our operations, we may be unable to continue as a going concern. In that event, we may be forced to cease operations and our stockholders could lose their entire investment in our company.

Results of operations for the years ended December 31, 2014 and 2013

For the year ended December 31, 2014, we generated gross revenues of $103,403 compared with revenues of $72,116 for the year ended December 31, 2013, which was an increase of $31,287. In the years ended in December 31, 2014 and 2013, the Company earned the majority of its revenues through its subsidiary Top Sail Production, LLC’s music rights.

Our operating expenses for the year ended December 31, 2014, were $1,317,381, compared to $934,905 for the year ended December 31, 2013, which was an increase of $336,699.

For the year ended December 31, 2014, we had consulting fees of $466,345, compared to $239,500 for the year ended December 31, 2013, which was an increase of $226,845. The increase was due to additional consultants needed to facilitate our planned marijuana operations. We also paid consultants to manage our music distribution operations. Currently, we have 7 consultants who work regularly with the Company. They are all engaged on a month-to-month basis and provide various consulting services ranging from, but not limited to, bookkeeping, promotions and marketing, sales and distribution, general management of ESMG, Inc., social media and real estate development.

For the year ended December 31, 2014, we had general and administrative expenses of $292,002, compared to $277,333 for the year ended December 31, 2013, which was an increase of $14,669. The increase was minimal as the Company’s general and administrative costs stay fairly consistent. They include employee payroll expense, rent, marketing, meals and entertainment, travel, supplies and other operating costs.

For the year ended December 31, 2014, we had wages and officer compensation of $366,268, compared to $374,212 for the year ended December 31, 2013, which was a decrease of $7,944. The decrease was due to our CFO resigning in February 2014. Our President and CEO, David Michery, has an employment agreement with the Company, which is detailed in Note 13 in our footnotes to our financial statements.

For the year ended December 31, 2014, we had professional fees of $192,766 compared to $43,860 for the year ended December 31, 2013, which was an increase of $148,906. The increase was due to additional professional fees needed to execute our planned marijuana operations as well as to execute our convertible notes payable.

For the year ended December 31, 2014, we incurred non-operating expenses totaling $7,666,969 compared to $2,779,401 for the year ended December 31, 2013, which was an increase of $5,065,499.

For the year ended December 31, 2014, we had interest expense of $145,519 compared to $177,931 for the year ended December 31, 2013, which was a decrease of $32,412. The decrease was due to reduced outstanding notes payable balances throughout fiscal 2014.

For the year ended December 31, 2014, we had derivative interest expense of $7,666,969 compared to $2,601,470 for the year ended December 31, 2013, which was an increase of $5,065,499. The increase was due to additional derivative liability being recorded in the year ended December 31, 2014. We calculate our derivative liability using the Black Scholes Model which takes into account variable features in our outstanding convertible debt as well as our ever changing stock price. Our stock price decreased dramatically in the year ended December 31, 2014, which was the major factor in the increased Black Scholes Model calculations of derivative liability.

Liquidity and Capital Resources

Our cash resources totaled $196,993 at December 31, 2014, compared to $64,771 as of December 31, 2013. We have a working capital deficit of $9,786,854 at December 31, 2014. Our working capital deficit is mainly due to the outstanding derivative liability of $7,811,895. Without factoring in the derivative liability, we have a working capital deficit of $1,975,486. We believe we will need an infusion of capital from third-party sources as our operations are not profitable.

In the year ended December 31, 2014, we had net cash used in operating activities of $1,472,141, compared to $1,478,481 in the year ended December 31, 2013.

In the year ended December 31, 2014, we had net cash used in investing activities of $32,500, which consisted of a $12,500 investment in Seattle Green Care and $20,000 in Suzie Q’s NPO. In the year ended December 31, 2013, we had net cash used in investing activities of $9,412, which consisted of purchased of furniture and equipment.

In the year ended December 31, 2014, we had net cash used in financing activities of $1,636,863, which consisted of $1,262,500 of proceeds from convertible notes payable and $374,363 in proceeds from the issuance of our stock. In the year ended December 31, 2013, we had net cash used in financing activities of $1,552,664, which was entirely from proceeds from convertible notes payable.

We have had no off balance sheet arrangements since inception through December 31, 2013.

The Company has not generated sufficient revenue from its operations and needs to raise capital to meet the operating requirements over the next twelve months. The Company’s financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The report from the Company’s independent registered public accounting firm states that there is substantial doubt about the Company’s ability to continue as a going concern.

Plan of Operation for the Next 12 Months

To help improve our current limited financial position, we plan to carefully seek out and secure third-party equity financing, both short-term and long-term, to both replace our current convertible debt financing and to provide a new and more stable source of capital. Our convertible debt financing to date has been expensive and highly dilutive and detrimental to our stock and needs to be replaced with less costly equity investment.

We intend to more carefully review investment in any future music artist so that we can more effectively manage our risk and downside. We view investment in a well packaged, well cast lower budget motion picture to be preferable than and investment in a higher risk one-off/unproven music artist.

We have redirected our real estate focus to acquiring properties specifically for lease to legalized medical marijuana cultivation growers and to investment, potentially with joint ventures, in business associated with the legalized growing of medical marijuana.

We also intend to include potential strategic business partners and alliances as possible sources of financing, as well as traditional institutional and venture capital sources.

0 996

Primco Management ESMG Ready to Launch Downtown Attraction

SEATTLE, Feb. 23, 2015 (GLOBE NEWSWIRE) — Primco Management Inc. (PMCM), a medical marijuana, real estate management and multi-media company announces the long awaited release of Downtown Attraction.

ESMG, Inc. is set to release the debut single from Downtown Attraction entitled “New Addiction”. The single is scheduled to be released March 2015, including a comprehensive radio, publicity and video promotional campaign. This will launch the song and lead the company to a successful summer time 14 track full-length album that has been 2 years in the making. In the meantime, the band is scheduled to film another video entitled “Land Of The F Up’s” that will follow their initial single. The band recently performed live in Los Angeles on February 17th, 2015 and will continue to perform in the upcoming months. For more information regarding Downtown Attraction, please visit www.DTAofficial.com. ESMG has not officially released the video but has a private link available for this press release.

Please go to https://www.youtube.com/watch?v=oThu4Uq8ZWE&feature=youtu.be

Downtown Attraction is produced by legendary multi-platinum producer Mike Clink. Mike Clink started his career as an engineer at Record Plant Studios, recording such bands as Triumph, Guns N’ Roses, Motley Crue, Megadeth, UFO (including Strangers in the Night), Jefferson Starship, The Babys, Heart, Eddie Money and many others. In 1986, Mike produced the release of Guns N’ Roses’ debut album, “Appetite for Destruction.” Mr. Clink’s collaboration with Guns N’ Roses sold a combined total of over 90 million albums. In 1989, Mr. Clink produced the critically acclaimed self-titled debut album of the Sea Hags followed by Megadeth’s blockbuster “Rust in Peace.” Dave Mustaine wrote in the Remaster’s Notebook that Mike Clink produced albums which influenced him as a guitar player. Mr. Clink has been involved in a variety of projects including the live half-time show for Super Bowl XXXV that featured Aerosmith, ‘N Sync, Nelly, and Britney Spears.

“We are extremely excited to have a producer of Mike Clink’s caliber in our camp. Mike sees ‘Downtown Attraction’ as a cutting edge, contemporary rock band and expects great things from them. To have Mike on board with his wealth of experience and talent is a major coup for ESMG and Primco,” said David Michery, President and CEO, Primco Management Inc.

Through its wholly-owned subsidiaries, ESMG Inc., Top Sail Productions and D & B Music, Inc., the Company operates as an integrated entertainment company with divisions in music and film production and distribution. Primco also operates in various aspects of the Real Estate Industry (For additional information, visit www.primcousa.com). Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company’s public announcements.

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Contact:
	CONTACT: David Michery, CEO, (562) 565-9967

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