When the tally is in, Forbes anticipates legal cannabis sales will have rung nearly $7 billion in sales in 2016. A recent report from Bloomberg indicates legal cannabis annual sales will reach $50 billion in the next ten years. With federal law still not completely supporting cannabis sales that are now legal under state law in well over half the United States, the banking behind colleting a fee for the sale of cannabis is problematic.
Alternet Systems (ALYI) History
Alternet Systems (USOTC: ALYI) is a long-time financial systems problem solver. ALYI has a long-term track record in developing innovative financial services industry software solutions. The company is guided by a team of executives specializing in entrepreneurial endeavors, innovation, corporate strategy, financial and executive management of multi-national organizations, and a vast network of industry resources. ALYI recently developed a unique financial services solution which was successfully sold allowing the Company to realize a 47% ROI.
North American Cannabis Holdings (USMJ) History
North American Cannabis Holdings (USOTC: USMJ) is a serial developer of a variety of enterprise solutions for the emerging legal cannabis sector. USMJ has annualize revenues today of approximately $500,000 from the operation of its developing AmeriCanna Cafe business. USMJ has already spun-off a proprietary cannabis extraction company into the standalone public company Puration, Inc. (USOTC: PURA) issuing one share of PURA common stock to every USMJ shareholder holding 200 shares of USMJ common stock. USMJ is also developing a line of cannabis infused sports and wellness supplements among other ongoing pilot projects.
USMJ and ALYI Come Together
USMJ and ALYI started working together early in 2016 to address the cannabis retail payment system conundrum. On December 20, 2016, USMJ and ALYI announced a share exchange agreement between the two companies structured to launch a cannabis retail payment system to be offered by ALYI. Last week, USMJ and ALYI management met in Miami where ALYI is headquartered to advance the transaction executed between the two Companies.
USMJ Spinoff And Dividend Plan: 50 Million ALYI Shares In The Next Dividend
In conjunction with USMJ’s stated business model dedicated to the ongoing development of a variety of cannabis enterprises conceived by the entrepreneurs leading the enterprises (See Marijuana Rules), the agreement between USMJ and ALYI includes the reservation of 50 million ALYI common shares to be issued in a dividend distribution to USMJ shareholders. USMJ’s dividend strategy is intended to create direct access for retail market investors to the return on investment (ROI) opportunity that is created when an entrepreneur brings a concept to life enterprises (See Marijuana Rules).
Before the dividend can be issued, more work is yet to be accomplished. For instance, ALYI is a fully reporting public company but currently behind in publishing its latest required financial reports. A dividend schedule to include a declaration date and payment date must be established and the necessary regulatory approvals must be secured. Most importantly, the operational business plan must be continuously updated to address set milestones that can continue the advance a concept to a revenue generating operation. Accordingly, management of the two companies met in Miami last week to address the work ahead.
The first order of business is of course to bring ALYI’s financial reporting requirements up to speed. At the same time, the operational plan must also be advanced. USMJ endeavors to establish revenue generating pilots that provide a venue to prove concept operations and provide a real-time environment for refining pilot services into a robust commercial solution. For example, USMJ is generating revenue from its developing AmeriCanna Cafe concept restaurant business as well as generating revenue from its developing line of cannabis infused sports fitness and wellness products. USMJ and ALYI plan to announce both a dividend declaration date and a first revenue generating cannabis retail payment system project within the next 90 days.
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