North American Cannabis Holdings and Puration Strategic Shift Shareholder Presentation

American Cannabis Holdings (ACI) entered the cannabis sector acquiring the majority interests in North American Cannabis Holdings (USOTC: USMJ) and Puration (USOTC: PURA).  ACI’s intent is to build a diversified company holding interests in multiple cannabis sector start-up and early stage companies.  

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ACI has a 2-pronged strategy.  First, each portfolio cannabis sector company will be very focused on one single, primary business function.  Second, each portfolio cannabis sector company will develop two separate revenue opportunities derived from one business function.  One will solicit revenue within the cannabis sector, and one will solicit revenue separate from the cannabis sector.

With a Little Bit of Risk Mitigation and a Whole Lot of Sustainability

A single, primary business focus is an obvious priority. The second priority, to derive revenue separate from the cannabis sector, may be less obvious.  The objective is sustainability and risk mitigation. An example is the best way to explain.

USMJ’s AmeriCanna Cafe grew from the acquisition of a health and fitness restaurant.  The restaurant has remained in the health and fitness business with pre-existing health and fitness products while piloting, refining and introducing cannabis infused products for the health and fitness market.  The restaurant asset puts a foot into the cannabis sector where success can produce exponential returns, but with that same restaurant asset, a foot is maintained outside the cannabis sector where the operational sustainability can be maintained within the already developed health and fitness sector.

Reprioritizing and Refocusing

USMJ acquired the City Blends flagship restaurant in the Dallas Metroplex over 2 years ago to develop the AmeriCanna Cafe concept.  A variety of products have been piloted and success with a number of those piloted products has contributed to healthy revenue growth (that growth continues still and shareholders can anticipate the pending report through the annual financial period ending June 30, 2016 to reflect continued growth – the annual report is now one day past due a filing extension, but expected to be updated as early as close of business today).  At the same time, having grown from the original American Seed & Oil cannabis incubator business model, USMJ has maintained several cannabis startup projects in addition to the AmeriCanna Cafe.  In fact, PURA’s business today is the result of a USMJ pilot spinoff.  Even PURA’s EVERx beverages originated as a USMJ pilot.  Both USMJ and PURA have small management teams with a broad range of initiatives.  Both USMJ and PURA have had a number of successes over the last two years, but EVERx and the AmeriCanna Cafe stand out.

USMJ’s Cannabis Friendly Restaurant Plus Strategy

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Going forward, USMJ will focus exclusively on the cannabis friendly restaurant sector.  The AmeriCanna Cafe will be the center peace of USMJ’s restaurant focus.  Plus … USMJ will keep a foot outside the cannabis market. USMJ will develop a completely separate non-cannabis market related restaurant focusing on the health and fitness sector.  Stay tuned for more to come on the separate health and fitness restaurant initiative.

USMJ’s AmeriCanna Cafe - Taking a Partner on the Road

AmeriCanna Cafe will move forward with a partner yet to be identified and with a food truck expansion plan.  USMJ is in discussions and looking to enter more discussions with celebrities to co-brand with the AmeriCanna Cafe.  Picture a branded food truck with “Celebrity Name’s AmeriCanna Cafe” on the side, pulled up outside a dispensary selling smoothies to which consumers can add the cannabis oil they just purchased, in addition to a gourmet munchie menu.

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USMJ Acquisitions and Spinoffs

USMJ is actively looking at new opportunities to acquire additional restaurant operations that will contribute to AmeriCanna Cafe’s growth or the growth of the independent health and fitness brand. USMJ is also exploring opportunities with ACI to spin non-core assets into new ACI projects.

PURA Beverage Industry Focus

PURA has had a good year with the Mach launch of EVERx at Arnold Schwarzenegger’s Arnold Sports Festival, and subsequently with getting EVERx on shelves at Drug Emporium. Now EVERx is also available for sale online at DrinkEverx.com. EVERx has two bottled waters under its brand name at this time – EVERx CBD Infused Sports Water and EVERx Alkaline Sports Water.  One foot in the cannabis market and one foot sustaining business outside the cannabis market.  Both under the same brand name, and both bottled by the same co-packer.  At this very moment, EVERx is producing its first two CBD Infused flavored waters to be available everywhere EVERx is currently sold.

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PURA Beverage Line Expansion Organically and through Acquistion

PURA originally set out to market its patented cannabis extract for infusion into the consumer products produced by other companies.  With very few cannabis infused products on the market at this time, PURA ended up working closely with partners to develop beverages that would use PURA’s proprietary extract.  The first product PURA got to market, it actually designed and produced itself.  Building on the success of EVERx, PURA now plans to expand by exclusively focusing on the beverage industry and building additional branded beverage products for market segments that are complimentary to EVERx’s sports and fitness focus.  In keeping with the one foot in and one foot out strategy, some of the beverages will be cannabis infused and some will be for markets outside the cannabis sector.  PURA plans to both develop new beverage lines organically as well as pursuing opportunities to acquire existing beverage companies.  Stay tuned for more news coming soon on new beverage lines under development both organically and threw merger and acquisition.

PURA Spinoffs

PURA has its patented extraction process through a license with NCM Biotech and is exploring new opportunities with NCM Biotech that could result in one of two initial spinoff opportunities from PURA.  The second spinoff opportunity currently in the works surrounds PURA’s 25 greenhouse grow operation which already has one foot in the cannabis space and one foot out providing flowers for the residential market.  First Choice Nursery, the 25 greenhouse grow operation subsidiary, is actively engaged in developing a spinoff opportunity.  More details will be forthcoming soon.

PURA Dividend Shares To USMJ Shareholders

ACI is enthusiastic about the perpetual dividend potential embodied in the concept behind USMJ’s spinoff of its cannabis extraction pilot to PURA that resulted in a dividend distribution of PURA common stock to USMJ shareholders.  ACI intends to further develop the concept and build an engine that generates more such dividend opportunities.  ACI recognizes the execution of the USMJ spinoff and PURA dividend distribution has tripped and stumbled along the way, but remains enthusiastic about the idea.  ACI believes valuable lessons have been learned through USMJ and PURA’s hands on experience that can make future dividend distributions run more smoothly.  ACI, USMJ and PURA are currently exploring potential strategies to turn the USMJ spinoff and PURA dividend distribution hiccups into a win-win for the all involved that reignites shareholder enthusiasm for the spinoff and dividend strategy, at the same time bolstering confidence in future spinoff and dividend opportunities.  One such strategy being explored is the potential repurchase of the PURA shares issued in the dividend distribution to USMJ shareholders.  Other ideas are also being considered, but the repurchase ideas is a current favorite of management.

Focus, sustainability and risk mitigation are the key elements behind ACI’s refresh plan for USMJ and PURA and future cannabis enterprise opportunities.  This is just the beginning.

Disclaimer/Safe Harbor:  This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

ACI, USMJ and PURA contact info:
Steven Rash
info@aciconglomerated.com

+1-800-861-1350
https://www.aciconglomerated.com/contact/

Michael Murphree