Agritek Holdings, Inc. Announces Approval of Name Change, Corporate Update and Letter to Shareholders
Through almost ten years, we have shared many ups and downs but still managed successful returns for our shareholders, especially in the early stages of our industry.
LOS ANGELES, CA, April 09, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Agritek Holdings, Inc. (AGTK) www.AgritekHoldings.com, a fully integrated, active real estate investor and white label provider for popular hemp brands, today announced the following corporate update and Letter to Shareholders.
Dear Shareholders,
Agritek Holdings, through its many years as one of the first public companies within the cannabis sector, has been operating every day focused on seeking to build an ever increasingly strong and profitable business model, all serving to enhance shareholder value. Given the recent wave of change within the cannabis sector and its challenges, we have witnessed even the largest cannabis companies in the US and Canada struggling to maintain operations and their listings on higher exchanges including NYSE: Aurora Cannabis: trading at .85, Curaleaf, Aphria Inc., The Green Organic Dutchman Holdings trading at .19 and MedMen closing at .20, all suffering massive layoffs and consolidation while burning through millions of dollars in infrastructure costs.
The Company thought it necessary at this time to provide an important update to all shareholders on Agritek Holdings’ focus and resolved commitment, despite the current market events of the global COVID-19 pandemic over the past few months. Under the advice of counsel and our corporate advisors on behalf of what is best for our shareholders moving forward, the majority shareholders of the Company voted on April 3rd, 2020, to approve a corporate name change and spin-off the cannabis assets of the parent Agritek Holdings, Inc. The newly approved name will be "iBet Gaming Corporation", with a majority focus on the eSports and legal video game wagering sector. The Company will seek to have all cannabis assets transferred to its wholly owned subsidiary, Full Spectrum Biosciences, Inc, and then initiate a “spin-off” doing a dividend to current Agritek Holdings shareholders. Following the official name change to iBet Gaming Corporation, we will file an S-1 registration statement for our subsidiary Full Spectrum Biosciences, Inc., (FSB) becoming a completely separate public company traded on the OTCQB exchange. Significant shareholder support for both the name change and change of business was received with approximately 70% of the majority shareholders voting in favor of these board resolutions.
It has always been my commitment as the founder and returning CEO to provide the most favorable and robust business strategy for long lasting shareholder value. Through almost ten years, we have shared many ups and downs but still managed successful returns for our shareholders, especially in the early stages of our industry. The Company’s majority shareholders have determined now is the time to spin-off of the cannabis-related assets into a separate public entity, while pursuing a new emerging growth sector of eSports and gaming. This corporate action is meant to reward our shareholders over the near term through a stronger market segment for our common stock price within the eSports sector. At the same time, all shareholders will receive a stock dividend once the spinoff is approved, becoming shareholders of two publicly traded companies within two emerging sectors bringing potentially great benefit to our investors.
I would like to take this opportunity to explain our new business model from Agritek Holdings, Inc. to iBet Gaming Corporation, and the assets and licenses we have already acquired to initiate this change to our corporate strategy without delay. We will be submitting the corporate action and name change resolutions via a 14-C information statement for SEC and FINRA review and final approval. There will be no interruption in trading, no further shareholder vote necessary, no reverse merger process and most importantly, no reverse split on our common stock post-transaction. As recently announced, the Company has filed its 8K extension and is presently completing its 10-K annual report for the year ending December 2019. Additionally, the Company expects to finally complete its application for uplisting to the OTCQB this month. The filing of the previously announced ELOC agreement for its $5,000,000 equity line investment and financing through its institutional investor will fund the newly named parent and trading entity as iBet Gaming Corporation and will be filed in conjunction with the 10-K annual report. Further, the S-1 registration statement for the spinoff of Full Spectrum Biosciences, Inc., will take place shortly after the filing of our annual report.
Our management team, board of directors and its advisors primary goal is to create maximum value for our shareholders and new investors. We have come up with a strategy in which we can give our shareholders two bites of the apple, being a part of two completely different sectors creating a market hedge, which in my opinion are poised for trajectory growth as regulations continue to change in a positive direction for both sectors and companies.
Our recently announced acquisition of Full Spectrum Biosciences (FSB) as a wholly owned subsidiary of Agritek Holdings, manufactures and distributes its hemp-derived CBD products under the RehabRx, MD Vapes, Hemp Pops and Higher Society trademarked brands. FSB brands are currently sold online (www.RehabRx.com) as well as approved for sale on Amazon (www.Amazon.com) being sold in the United States and parts of Canada. The Company posted nearly $500,000 in top line for 2019. Post spin-off, Full Spectrum Biosciences will continue to invest in the growth of these brands while also seeking to acquire and develop additional brands as intellectual property under the “FSB” banner.
The transaction, once completed, will result in two separate public companies benefiting from separating their respective corporate strategies and capital allocation priorities. Accordingly, the Company will establish a record date for the spin-off at such time that all conditions have been met and expect to declare a dividend to all shareholders of record, where all registered shareholders of Agritek Holdings (AGTK) will receive a pro-rata dividend or ownership of Full Spectrum Biosciences as the separate public company once cleared for trading, at the record date to be determined in the near future. The Company is presently working with an M&A advisory firm speaking with at least one public company within the cannabis sector for “FSB” to be considered as an acquisition candidate. Full Spectrum Biosciences will be pursuing a private round of financing, and post spin-off, it will take the necessary steps toward listing its shares on the OTCQB exchange if a proposed acquisition is not completed before the process.
iBet Gaming Corporation, our new parent company (presently AGTK) and trading entity post name change, has immediate plans to integrate its peer-to-peer eSports licensed wagering platform into its new business model. This change in strategy and model comes amid changes to betting laws in the US. Currently, certain jurisdictions have approved skill-based betting activities whereby, for example, an individual can take advantage of peer to peer wagering through live streaming eSports tournaments, fantasy and virtual sports events or video game tournaments similar to Call of Duty competitions.
Through our new technology and licensed gaming platform for the eSports arena, the Company believes our new direction could prove to be bigger than our original business model over the near term. We have already partnered with some of the leading companies within the eSports industry, and our iBet platform is approved for wagering in two major gaming jurisdictions (Curacao and Malta) for peer to peer wagering on eSports, fantasy sports, video game wagering and is second to none as a technology and video streaming platform.
Through my many years as a public officer and advisor in the online gaming and regulated gaming sector as part of my professional resume, I am attributed for creating one of the first progressive slot machines for the casino industry, “Ed McMahon’s Million Dollar Madness” within my first public company “Interactive Games Inc.” I look forward to returning to an industry I know well and leading this Company along with a seasoned management team. We have already expanded our plan for land-based betting kiosks for eSports and handheld devices through technology partners. iBet through its subsidiaries, will plan to represent and sponsor some of the top, up and coming eSports teams from around the globe through its wagering and interactive, social media platforms.
As competitive gaming cements itself in the popular culture, global investors, brands, media outlets, and consumers are all paying attention. 2018 was a landmark year that cemented eSports as the next billion-dollar industry. With $865 million in market revenue, the global eSports market revenue is forecast to reach US$1.79 billion in 2022, growing at a CAGR of 22.3%.
Total eSports viewership is expected to grow at a 9% compound annual growth rate (CAGR) between 2019 and 2023, up from 454 million in 2019 to 646 million in 2023, per Business Insider Intelligence estimates. As a result, the industry has seen a huge uptick in investment from venture capitalists, and more recently from private equity firms. The number of investments in esports doubled in 2018, going from 34 in 2017 to 68 in 2018, per Deloitte.
MOVING FORWARD
During our initial years as a pioneer within the cannabis sector, our Company originally known as “Mediswipe” was the first fully reporting cannabis company. Our innovative business model within the cannabis sector was to be the first to offer financial transactions for the cannabis industry. At one point, we reached $20,000,000 in monthly processing volume for dispensaries in both Colorado and California. Through my leadership, we were also the first cannabis related company to award our shareholders a dividend through the spinoff of our merchant processing division 800 Commerce, Inc. to our long term investors. As I mentioned earlier, before my term as CEO of Mediswipe, I was the founder of another public company “Interactive Games”, a company within the regulated gaming industry which ultimately led to producing celebrity slot machines for the casino industry. With that said, I believe there now exists great opportunity within the untapped esports and gaming sector, now seemingly mimicking the excitement of the cannabis sector years ago with new markets opening to eSports wagering monthly, including Las Vegas, New Jersey, Mexico, the EU, and Canada.
The new iBet Gaming Corporation capitalization table (presently AGTK) is less than 50 million shares outstanding, with management owning approximately seventy percent of the Company. The majority of the convertible debt has been purchased by our long term institutional investor, helping to limit the downward pressure of our common stock, and who will continue to fund the new company under a new $5,000,000 equity line to be registered.
As we will compete in a very young and in many ways immature industry, I thought it important for you to know that Agritek is responding by focusing on our business plans and growth priorities for the remainder of Fiscal 2020 as the world markets change through this global epidemic. We have momentum on various fronts and we remain confident in our ability to achieve our revenue and profit commitments through both our eSports business model for our parent, and open a new door through our cannabis hemp brands and assets with Full Spectrum Biosciences as a new public company with no convertible debt and fresh slate at the same time rewarding our shareholders with a dividend share of the newly formed company. It seems clear based on estimates of growth within the eSports industry, we will be poised to catch the wave of this sector as we once did in the beginning of the cannabis sector as the first public company serving financial transactions for cannabis.
As the largest single shareholder of our Company, I remain optimistic about our future and I am excited about the challenges and opportunities that lie ahead. You can be assured that our management team which will be expanding over the coming months consisting of seasoned professionals, will be taking an aggressive and optimistic approach while diligently working to build on our growth strategy. We will demonstrate, through solid financial performance and laser focus, that we are moving in the right direction and adding value to those that we will continue to serve: Our shareholders, employees, customers, and business partners.
Respectfully,
B. Michael Friedman, CEO
About iBet Gaming Corporation
iBet Gaming Corporation is a licensed gaming company with a focus on esports, fantasy and in video game wagering. The Company offers real-time wagering lines on esports events through the Company’s licensed, regulated and secure platform to the global esports community through the soon to be released portal www.ibetgaming.com. In addition, iBet intends to offer users in legal jurisdictions throughout the world the ability to participate in esports entertainment and video game tournaments for cash and prizes. The eSports market is expected to grow exponentially because of various driving factors, such as the increasing popularity of video games and growing awareness about eSports.
iBet Gaming Corporation is led by a team of industry professionals and technical experts from the online and regulated gaming industries, with a new focus on eSports. According to Statista, worldwide revenue for eSports will top $1 billion in 2019, continue to grow rapidly in the coming years and by 2022, 650 million people are expected to be watching eSports online.
The Company, through its partners, holds licenses in Curacao and Malta to conduct online gaming tournaments and take wagers for 18+ gaming in the EU and multiple countries.
About Agritek Holdings, Inc.
Agritek Holdings, Inc. (www.AgritekHoldings.com), is a fully integrated, active real estate investor and advisor of white label brands in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of cannabis related real estate holdings. Agritek Holdings recently acquired Full Spectrum Biosciences as a wholly owned subsidiary which manufactures and distributes its hemp-derived CBD products under the Rehab Rx, MD Vapes, Hemp Pops and Higher Society trademarked brands. Full Spectrum brands are currently sold online (www.RehabRx.com) as well as approved for sale on Amazon (www.Amazon.com) currently being sold in the United States and parts of Canada. Agritek Holdings Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act.
About Full Spectrum Biosciences
Full Spectrum Biosciences (FSB) is a wholly owned subsidiary of Agritek Holdings, which manufactures and distributes its hemp-derived CBD products under the RehabRx, MD Vapes, Hemp Pops and Higher Society trademarked brands. Full Spectrum brands are currently sold online (www.RehabRx.com) as well as approved for sale on Amazon (www.Amazon.com) being sold in the United States and parts of Canada. Post spin-off, Full Spectrum Biosciences will continue to invest in the growth of these brands while also seeking to acquire and develop additional brands as intellectual property under the “FSB” banner.
FORWARD-LOOKING DISCLAIMER:
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein.
Contact:
Agritek Holdings, Inc.
www.AgritekHoldings.com
305.721.2727
