Saturday, July 14, 2018

The latest dirt on Nipton and American Green

As most of my readers know, the tiny town of Nipton was sold about a year ago with the new owners, a small cannabis company named American Green, pledging to make it a world class marijuana themed destination. They announced some really big plans and proceeded to implement them.

So how has that worked out?

As you may know, I visited the town during the renovations and observed the progress, even toured the hotel with an American Green V.P. as my guide. I was impressed with the progress and noticed just how friendly everybody was.

Unfortunately in all the planning, somebody at AG forgot to talk with the folks running San Bernardino County- whose ordinances forbid the growing and selling of marijuana and its products in
unincorporated parts of the county- so there went the marijuana themed resort aspect.

Note. I am a participant on the IHUB American Green stock forum and in addition to providing due diligence to the forum, have received it via others also. And the due diligence is bad news for the folks at AG, and investors in this penny stock.

It has come to investors attention that the project manager for AG's Nipton, Stephen Shearin, has been let go or resigned, and it happened about 2 months ago. Interestingly, American Green has neither confirmed nor denied this, nor have they put out a press release on this material event.

Of course, rumors abound on the forum including ones about the recent news that American Green has sold Nipton to another penny stock firm, Delta Oil and Gas Inc, with a provision that AG continue running it for the next few years. Rumor is that this stock transaction between two firms with virtually no assets or income but plenty of debts, might have come to the attention of the SEC and other government financial regulators, thus leading to the need of a "fall guy."

So who knows, the folks on the forum may be right. Things may be about to take a turn for the worse at AG. A lot worse. But enough about the stock. Let's talk about the town and the nearby area.

Nipton is located at the north  end of the Ivanpah Valley- just a few miles from the Ivanpah solar facility. It has an aquifer running under it. You may have heard that American Green, along with another small penny stock firm, planned on building a CBD water bottling plant in the town. Well in my opinion, based on my analysis of the current situation and the players involved, that is just a pipe dream and the bottling plant will not be built. You see I know something about AG, their record is one of huge promises made and virtually nothing delivered. In fact, their revenue is derived mainly from sale of their common stock. This is done by a process where they get cash from lenders or other rich individuals and issue what is called convertible debentures, at a discounted price, which the lender then converts into shares of stock which they sell to the market. In addition, they get paid interest under certain conditions. They make out like bandits, with the rubes(normal shareholders) seeing their shares diluted and reduced in value.

You may say how can that be legal? I don't know if it is or isn't, all I know is that they have been doing this their whole 19 years in business, and the SEC hasn't shut them down yet!

So what I am saying is the main damage to come to the Ivanpah Valley most likely will not be done by American Green, the crowd that can't shoot straight.