Hi-fidelity quotes from Q&A. These highlights were carefully transcribed from the original audio source. These are not excerpted from the poorly transcribed and erratic web version of the Q&A. That one should go into the circular file.
From the September 12, 2013 Q&A.
http://www.medicalgreens.com/docs/Audio/SKTO_CC_001.mp3
Benz on A/R: "The good news, and I really want to emphasize this, the good news is that we've started to collect our accounts receivable here in quarter three, and we're looking forward to having a great quarter and a great report on those collection efforts at the end of the quarter."
Benz on Yak/Yeti: "I can't talk about details of contracts ... The short answer is that we control the license and recipes to use the Yak and Yeti product brands. We're working on new packaging, and you should start to see that on dispensary shelves in the next few months.
More importantly, we're taking steps engaging in cross promotion and marketing and distribution deals to ensure that the Yak and Yeti products receive the maximum possible distribution.
Sorry that I can't provide more details about the agreements. ... Nonetheless, as we've already reported on some of our sales efforts (the pro forma's $754K sales?), I'm sure that in the future I'll have more to report on this."
These two comments (A & B) are linked:
A) Benz on CUSIP: "The short answer is the CUSIP change will happen as part of the merger and name change. There are many steps to get through the process but the final one is: FINRA Notice to the Broker Community of the Merger, a reverse in the new CUSIP number. Effectively, we will look to have this done at the same time as the merger and the AEGY dividend distribution. It's because of the vagaries of the process that it's hard to put an exact date on that."
B) Benz on AEGY divi and CUSIP/Name timeline: "People can deduce from this what they wish (i.e., figure out new CUSIP approximate date), but I'm not giving hard and fast deadlines on this at this point. As soon as AEGY registers the shares that are to be distributed by SK3 as a dividend, the dividend will happen. AEGY can't do a registration on this, we've been told, until after it completes an audit and files its annual report on Form 10-K for the year ended July 31, 2013. That is due at the end of October (2013). So, at some point, in now a much shorter time than before, in the coming months, that will happen but I can't put a date on it at this point."
Allyn on growth: "I can say that we are looking at and intend to be growing the company both with acquisitions and with organic internal growth. Suffice it to say, I think we are on to some exciting ideas that will transform this (MMJ) space."
Benz on collectives: "There seems to be a lot of confusion about this issue. We are not profiting from the sale of MMJ. We don't sell medical MJ or any other form of MJ. We are receiving revenues in return for services to businesses that are in the business of medical MJ.
This (what SK does) is not regulated in California any more than are lawyers or CPAs or financial consultants or other business advisors who are advising collectives. It's not specially regulated in any way.
We are engaged in a business that, by all acounts, is lawful in the provision of our services. ... We are not a collective nor do we intend to be a collective.
The same answer (i.e., engaging in established lawful business activities) applies across the board in terms of all the related businesses and marketing agreements that we have."
Allyn on collectives: "At SKTO, we facilitate their (collectives') business operations. We consult their businesses on marketing, finance, administration, branding etc. We do not grow or cultivate marijuana."
Allyn on interstate: "Our goal is to be nationwide."
Benz on non-profit collectives: "Non-profit status has nothing to do with how collectives pay SKTO for the services we render. You can earn very high revenues as a non-profit entity. Just look at the American Red Cross or similar high-profile non-profit organizations. What SKTO does is charge the collectives a fee for the services we provide to them in the running of their business."
Allyn on Larry King and other media visits: "It (King interview) is something I want to make sure we do when the time is right. Larry King has agreed to interview me in my first on camera interview, which I am really excited about. He's a legend; he's a global icon.
With respect to other media interviews, we have been approached by a number of media outlets to discuss the company. But we are also being very careful about who we do this with and how we do it."
Allyn on celebrity endorsements: "I have a huge background in this space and that's a great question and an obvious one, I think. We're looking at various partners -- board members, advisory board members and endorsers -- every day.
But this process requires some care. We want to be very careful who we pick -- what their background is, their experiences, knowledge, skillsets, accomplishments and connections to be able to leverage their involvement for maximum gain for the company and its shareholders.
So I can say that, yes, we are always looking at this and that we intend to close and announce some interesting affiliations in the coming weeks."
Allyn on banking: "The reference to private banking on the website is a reference to our efforts in launching the Simple Prepay program that allows greater ease of transactions between patients and collectives, in a manner that gets us around federal restrictions on the use of credit cards in collectives. Watch for more to follow in the very near future."
Allyn's closing comments : "In closing, I would like to thank all of you, all of our shareholders, for their continued investment in and loyalty to the company. And you can rest assured that we will always do everything we can to make you proud and to maximize long term shareholder value."
Comments:
Both Benz and Allyn were honest, articulate, professional, and knowlegeable in their comportment and their answers for the Q&A. They were quite impressive. The company, operating in a challenging and changing environment, is in good hands .
All in all, the Q&A should materially boost investor confidence in SK. Anyone listening to Allyn and Benz will realize these are seasoned, highly professional businessmen, very intelligent and enviably articulate. They are smart and cautious in maneuvering around the danger areas of this business sector but bold and visionary at the same time. A perfect combination for making high risk ventures pay off. The company is in good hands. It's clear they are committed to building something big and very profitable.
From the September 12, 2013 Q&A.
http://www.medicalgreens.com/docs/Audio/SKTO_CC_001.mp3
Benz on A/R: "The good news, and I really want to emphasize this, the good news is that we've started to collect our accounts receivable here in quarter three, and we're looking forward to having a great quarter and a great report on those collection efforts at the end of the quarter."
Benz on Yak/Yeti: "I can't talk about details of contracts ... The short answer is that we control the license and recipes to use the Yak and Yeti product brands. We're working on new packaging, and you should start to see that on dispensary shelves in the next few months.
More importantly, we're taking steps engaging in cross promotion and marketing and distribution deals to ensure that the Yak and Yeti products receive the maximum possible distribution.
Sorry that I can't provide more details about the agreements. ... Nonetheless, as we've already reported on some of our sales efforts (the pro forma's $754K sales?), I'm sure that in the future I'll have more to report on this."
These two comments (A & B) are linked:
A) Benz on CUSIP: "The short answer is the CUSIP change will happen as part of the merger and name change. There are many steps to get through the process but the final one is: FINRA Notice to the Broker Community of the Merger, a reverse in the new CUSIP number. Effectively, we will look to have this done at the same time as the merger and the AEGY dividend distribution. It's because of the vagaries of the process that it's hard to put an exact date on that."
B) Benz on AEGY divi and CUSIP/Name timeline: "People can deduce from this what they wish (i.e., figure out new CUSIP approximate date), but I'm not giving hard and fast deadlines on this at this point. As soon as AEGY registers the shares that are to be distributed by SK3 as a dividend, the dividend will happen. AEGY can't do a registration on this, we've been told, until after it completes an audit and files its annual report on Form 10-K for the year ended July 31, 2013. That is due at the end of October (2013). So, at some point, in now a much shorter time than before, in the coming months, that will happen but I can't put a date on it at this point."
Allyn on growth: "I can say that we are looking at and intend to be growing the company both with acquisitions and with organic internal growth. Suffice it to say, I think we are on to some exciting ideas that will transform this (MMJ) space."
Benz on collectives: "There seems to be a lot of confusion about this issue. We are not profiting from the sale of MMJ. We don't sell medical MJ or any other form of MJ. We are receiving revenues in return for services to businesses that are in the business of medical MJ.
This (what SK does) is not regulated in California any more than are lawyers or CPAs or financial consultants or other business advisors who are advising collectives. It's not specially regulated in any way.
We are engaged in a business that, by all acounts, is lawful in the provision of our services. ... We are not a collective nor do we intend to be a collective.
The same answer (i.e., engaging in established lawful business activities) applies across the board in terms of all the related businesses and marketing agreements that we have."
Allyn on collectives: "At SKTO, we facilitate their (collectives') business operations. We consult their businesses on marketing, finance, administration, branding etc. We do not grow or cultivate marijuana."
Allyn on interstate: "Our goal is to be nationwide."
Benz on non-profit collectives: "Non-profit status has nothing to do with how collectives pay SKTO for the services we render. You can earn very high revenues as a non-profit entity. Just look at the American Red Cross or similar high-profile non-profit organizations. What SKTO does is charge the collectives a fee for the services we provide to them in the running of their business."
Allyn on Larry King and other media visits: "It (King interview) is something I want to make sure we do when the time is right. Larry King has agreed to interview me in my first on camera interview, which I am really excited about. He's a legend; he's a global icon.
With respect to other media interviews, we have been approached by a number of media outlets to discuss the company. But we are also being very careful about who we do this with and how we do it."
Allyn on celebrity endorsements: "I have a huge background in this space and that's a great question and an obvious one, I think. We're looking at various partners -- board members, advisory board members and endorsers -- every day.
But this process requires some care. We want to be very careful who we pick -- what their background is, their experiences, knowledge, skillsets, accomplishments and connections to be able to leverage their involvement for maximum gain for the company and its shareholders.
So I can say that, yes, we are always looking at this and that we intend to close and announce some interesting affiliations in the coming weeks."
Allyn on banking: "The reference to private banking on the website is a reference to our efforts in launching the Simple Prepay program that allows greater ease of transactions between patients and collectives, in a manner that gets us around federal restrictions on the use of credit cards in collectives. Watch for more to follow in the very near future."
Allyn's closing comments : "In closing, I would like to thank all of you, all of our shareholders, for their continued investment in and loyalty to the company. And you can rest assured that we will always do everything we can to make you proud and to maximize long term shareholder value."
Comments:
Both Benz and Allyn were honest, articulate, professional, and knowlegeable in their comportment and their answers for the Q&A. They were quite impressive. The company, operating in a challenging and changing environment, is in good hands .
All in all, the Q&A should materially boost investor confidence in SK. Anyone listening to Allyn and Benz will realize these are seasoned, highly professional businessmen, very intelligent and enviably articulate. They are smart and cautious in maneuvering around the danger areas of this business sector but bold and visionary at the same time. A perfect combination for making high risk ventures pay off. The company is in good hands. It's clear they are committed to building something big and very profitable.
