Players Network, Inc. Shareholder Update April 20th 2020
Let me start by wishing you and your family “good health”. Everyone here, our entire PNTV family, is safe and doing well during this pandemic.
When disaster strikes, opportunity also presents itself. For me, that opportunity has been the time to look around and reflect on what is truly important. In my case it has been health and family. Like most of you, I’ve been working from home, with only occasional visits to the farm in North Las Vegas. I have had time to call and reconnect with friends I haven’t spoken to in a long time, go through clutter, read a book, and spend time in the kitchen learning new recipes.
The other opportunity I’ve had is time to just “think”… think about the economy, our company and the state of affairs in our Las Vegas and Jujuy Argentina operations. Let me give you a general update and share where I see the Company going both short and long term.
In January I put out an optimistic shareholder update focused on the fact that in 2019 we laid down a great foundation to allow us to soar into 2020 with positive cash flow from North Las Vegas and harvest our first crop in Jujuy. I also updated shareholders on our Nevada class action dispensary lawsuit, financial filings and more.
Those who know me personally, or have followed the company, know I’m the ultimate optimist. As you’ll read, I remain so now. Regardless of the delays this pandemic has put in all our lives, I can assure you…
“The Glass is MORE than Half Full”.
The Cannabis Industry:
As is typical with over-optimism in the early stages of a new industry, most cannabis companies have been overvalued, trading at market caps far beyond their actual value. Beginning in the fall of 2019 that began to change, just like the dotcom bust for those of you old enough to remember.
Many of the companies that suffered the worst had used overpriced stock to acquire overpriced assets, hired far too many people, and built a bloated overhead to give the market perception they were doing great. Now, they are suffering with far more liabilities than their revenue can support. Keep in mind, federally cannabis is still illegal in the U.S. Every state, where it has been legalized, has imposed burdensome regulations and taxes that provide few, if any, of these companies a business model for long-term success. Now comes this pandemic. Because it is federally illegal, cannabis companies are not just struggling, they don’t even qualify for any of the $2.5+ trillion stimulus money.
In PNTV’s situation, we got caught in a market sell-off and margin calls. I hope all of you, like me, have retained faith in the company and believe our stock is extremely undervalued. As I’ll discuss below, and as I firmly believe will be shown in the near future, I hope you have not been forced to sell.
Not a client..