By Michael Berger
Players Network Inc. (PNTV: OTCQB), is a diversified holding company that is focused on two primary industries, media and medical marijuana. PNTV offers investors the opportunity to invest in a diversified cannabis company that is levered to the legal Nevada marijuana market. PNTV is a one of the only fully reporting companies that has received a license to cultivate and process cannabis. This fact gives us a sense of confidence that PNTV is one of the more legitimate OTC traded marijuana stocks.
Entrance into the marijuana space
In late July, PNTV formed Green Leaf Farms Holdings, Inc. The company used Green Leaf to enter the legal medical marijuana industry and apply for a medical marijuana dispensary in Nevada. A few months later, Green Leaf’s application was approved by the state of Nevada for an edible extraction facility. The facility will be located on a 3.2 acre piece of property purchased by Green Leaf. The land which they purchased is able to support a 70,000 square foot facility which will easily be able to satisfy demand. PNTV owns 80% of Green Leaf Farms Holdings with the remaining 20 percent held by key advisors and experts.
The company is working diligently to hopefully commence operations by mid-2015. These operations will provide PNTV with a source of revenue that will enable the company to continue to grow and invest in profitable business ventures. The company believes that the facility can generate $12 to $14 million in annual revenue in its first year of operation. They expect total revenue generated by the facility to increase year over year as demand grows.
Unique business model can create synergies for their two business units
PNTV is also actively involved in the media industry through their proprietary channels. This offers the company another source of revenue, and free exposure for their marijuana business. The company will use WeedTV.com, one of their proprietary channels to increase exposure for Green Leaf. This channel also generates revenues through advertising, cross selling with other companies and premium membership subscriptions.
The company has a unique advantage that makes them an interesting play in the cannabis space. PNTV is able to utilize their two businesses units to create synergies for each other and increase total revenues. These revenues will lead to higher margins, which will improve the company’s bottom line if they are able to execute on their business plan.
Strong management team
PNTV has been around since the early 1990s and they have created many strategic relationships that strengthen the company’s footprint. The company’s CEO and founder, Mark Bradley founded Players Network in 1993 and has served as CEO since the company’s inception. Bradley has been a producer/director at United Artists, and was studio manager and postproduction supervisor with United Cable Television in Los Angeles, engaged in the production, packaging and syndication of television and film productions for such media venues as HBO, Nickelodeon and MTV.
The company’s Chief Creative Officer, Michael Berk, is a prolific writer, producer and director with over three hundred hours of television programming to his credit. Berk created and Executive produced “Baywatch,” the most popular series in television history, and is currently producing a large-budget “Baywatch” feature film for Paramount.
Leslie Thomas is the marketing and operations manager for PNTV. Thomas works directly with major media outlets, including: Comcast Communications, DirecTV, AT&T, Verizon, and TivoCast, as well as multiple broadband sites.
The marketing and licensing advisor, John Raczka, has a proven track record of success in driving revenue growth in the linear, interactive and gaming entertainment sectors worldwide.
Edward Sullivan serves as the company’s media, branding, and marketing advisor. Sullivan has overseen the brand & marketing efforts for over 50 launches and re-launches of major media companies including: CBS, ABC, FOX, Discovery Networks, Turner Broadcasting, HBO and Disney cable networks.
Doug Miller serves on the board of PNTV and brings over thirty years of hands-on operating experience to the Players Network Board. Focusing on high growth start-up and turnaround companies, Mr. Miller participated in leading four companies to IPO´s. Mr. Miller holds a B.A. from the University of Nebraska and an MBA from Stanford University.
PNTV’s entrance into the medical marijuana market offers a lot of upside to current estimates, however the stock has not reacted favorably to this. PNTV is down over 10% since early November even though the story has improved. Technical420 thinks that the company has the potential to be player in the cannabis industry due to their unique business model and the synergies that can be created between Weed TV and Green Leaf Farms Holdings. However, the current trading pattern of PNTV keeps Technical420 on the sidelines until an upward price trend is formed, or until positive guidance is released regarding their Nevada operations.