NEW YORK--(BUSINESS WIRE)--Green Energy Management Services Holdings, Inc. (OTCQB:GRMS) (the “Company” or “GEM”), a company previously focused on marketing and selling energy saving lighting and water conservation products and technologies, announced today that it has changed its strategic business direction to improve shareholder value.
The Company announced that it has entered into an Advisory Services Agreement with Lotus MMJ Consulting, LLC (“Lotus”), an industry leader in consulting for marijuana infrastructure and operational services (the “Marijuana Industry”), for Lotus to assist the Company with the development of a similar business model. Erik Santus, a principal of Lotus and an industry pioneer in the state of Colorado, has performed various services for numerous parties interested in participating in the rapidly growing Marijuana Industry that have capital but require expertise in licensing, growing, and retailing marijuana based products in Colorado and other states where marijuana has been legalized. Mr. Santus is also a principal of, Lotus Medical, LLC, which was issued one of the first medical marijuana licenses in Colorado. Lotus is the premier medical marijuana dispensary in Colorado and currently operates a fully integrated growing and dispensing facility in downtown Denver. Mr. Santus has appeared on CNN, the Daily Show with John Stewart, and been featured in the Wall Street Journal.
Commenting on the agreement with the Company, Mr. Santus stated “The opportunity to work with a public company that will focus on the Marijuana Industry will open opportunities for GEM and us that most industry participants do not have. Most industry participants have little or no experience in licensing, growing, plant nutrient systems, or the retailing of Marijuana based products. My goal is to assist GEM by utilizing GEM’s access to public markets capital, to provide a blue print to build a successful and sustainable infrastructure, and creating a globally recognized cannabis brand. I believe that utilizing our proprietary management techniques should reduce the capital risk exposure for those just entering the Cannabis Industry. My background in alternative plant based treatments with non-THC based products also should prove beneficial to GEM in its new business direction.”
Mr. Santus continued “The 2015 budget for Marijuana sales tax revenue in Colorado is projected to be over $1 billion, and as part of our initial strategy, we believe that this should allow GEM numerous opportunities to provide equipment, construction management, plant growing expertise, and retail consulting to the industry players. As part of GEM’s future strategy, subject to a change in applicable Federal laws, we hope to assist GEM in licensing, growing, and retailing marijuana based products in the states where marijuana has been or will be legalized. As part of our initial consulting strategy for GEM’s clients, we view obtaining options to acquire such businesses as an innovative approach to establishing our brand, subject to applicable state laws and a change in applicable Federal laws.”
Dr. Robert Thomson, GEM’s interim CEO, acting CFO and Chairman, noted “The addition of Lotus’ management team and expertise in the Marijuana Industry will allow GEM to focus on creating revenue opportunities in the legal Marijuana space. In the coming future we hope to announce several measures that will establish our company as a known entity in the legal Marijuana infrastructure services industry, as well as to use Lotus’ experience to research other alternative care products for the ill. While we believe the ancillary services of the Marijuana Industry have the potential to generate significant revenue, our long-term objective is to capitalize on entering the market as a fully integrated business in the Marijuana Industry, provided that legislative changes allow that to occur. As more states legalize the retail distribution of marijuana and alternative marijuana care products, we will be positioned to provide capital, real estate financing, equipment, construction management and consulting expertise for customers entering the business. This represents an extremely viable opportunity and a better option for improving shareholder value than our prior business operations.”
As part of the Advisory Services Agreement, to align long-term shareholder value with Lotus’ compensation, the Company issued warrants to Mr. Santus to purchase up to 3,250,000 million shares of the Company’s common stock. Mr. Santus will continue to own and operate Lotus and Lotus Medical, LLC.
In connection with entering into the Advisory Services Agreement, the Company also announced that it sold its assets associated with its prior energy saving and water conservation business (the “Assets”) to an affiliate of Barry Korn, the Company’s former CEO, in consideration of the buyer assuming all of the Company’s liabilities related to the Assets. In connection with such sale, the Company also announced the appointment of Dr. Thomson as the Company’s interim CEO and the departure of Mr. Korn from his position as CEO, who acquired the Assets and is otherwise pursuing private ventures in his current financial services business. Mr. Korn will remain a consultant to the Company to assist with the transition to the new cannabis business operations.
About Green Energy Management Services Holdings, Inc.
Effective as of March 17, 2015, the Company provides infrastructure and technology services for the legal Marijuana Industry. They consist of consulting, horticultural advice, construction management and financing alternatives for customers wanting to enter the industry. The Company also plans to research non-THC based treatment alternatives focused on a variety of illnesses.
Prior to the change in its strategic business direction, the Company was a full service provider which focused on marketing and selling energy saving lighting and water conservation products and technologies. Utilizing proprietary technology and design, the Company provided, lighting, electrical, and water savings products at little or no cost to the owner, while recovering its revenue from the recognized shared savings. The Company offered these services on a nationwide basis.
Please visit www.greenenergymgt.net for more information. The Company is in the process of considering a name change and updating its website to more appropriately reflect the new business model. The Company’s new website will provide its investors information on its new business model and activities, as well as all of its past filings, press releases and communications. Please visit www.lotuscannabis.com and see below to learn more about Lotus and Lotus Medical.
About Lotus MMJ Consulting, LLC and Erik Santus, Owner & Managing Member
Mr. Santus serves as the Chief Operating Officer for Lotus MMJ Consulting, LLC providing the company with the extensive knowledge and experience needed to successfully navigate and control operational components of running a medical marijuana establishment. Given many years of research Mr. Santus also focuses on non-THC based alternatives to cure the ill.
About Lotus Medical, LLC
Lotus Medical, LLC is the premier medical marijuana dispensary in Colorado and was one of Denver’s first medical marijuana care centers to obtain its official business license as a marijuana dispensary in 2009. Mr. Santus worked in conjunction with local lobbyists, legal professionals, congressional members, and the Medical Marijuana Enforcement Division to facilitate the advancement of medical marijuana legislature in Colorado. His close cooperation and coordination with various governmental agencies helped craft the initial Denver city ordinance which was the first set of laws regulating Marijuana in the state of Colorado. www.lotuscannabis.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company, including statements about the Company’s expectations regarding projected revenue, market size and the value of the services to be provided by Lotus to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the Company and its business, especially those related to the highly regulated and uncertain marijuana industry, the Company’s ability to fund and implement its new business model, its ability to benefit from the Advisory Services Agreement and the new business plan, the contribution of Lotus’ executives and the continued rapid growth of the local Colorado and other states’ legal marijuana industry, could cause the Company's actual results to differ materially from those indicated in any forward-looking statements. These and other factors are identified and described in more detail in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K filed with the SEC on May 13, 2014. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.