American Seed & Oil Company Releases 2015 Q2 Report and CEO Update

DALLAS, Feb. 25, 2015 /PRNewswire/ -- Algae International Group, Inc. (OTC: ALGA), through its operating subsidiary American Seed & Oil Company, today announced the release of the Company's 2^nd quarter financial report and an accompanying update from the Company's CEO, Steven Rash. 

Dear Shareholders and Interested Investors:

Thank you for your interest in our Company.  An idea presented to me a year ago that seemed to be a good plan at the right time has become much more than just another promising venture.  Algae International's American Seed & Oil Company subsidiary has become a passion project in which I am now intimately involved.  I am sincerely grateful for the time you have taken to read my letter.

Momentum to legalize a cannabis market in the United States has garnered global investment interest.  The increasing number of States within the United States that have legalized some aspect of the overall cannabis market opportunity have already generated billions in economic potential to include job creation, tax income, and return on investment. Hence, a cannabis business venture is a good idea at the right time.

As I have become increasingly more involved in the Company's early stage operations and developing business plans, I have become more convinced in the overall return on investment potential of a sound, well stewarded entrepreneurial cannabis venture.  I believe Algae International's American Seed & Oil Company is just such a sound, well stewarded venture. 

My growing passion stems from the tangible benefit I have personally witnessed from the economic benefits enjoyed by cannabis farmers and entrepreneurs to the patients of various ailments, usually tragic, that have had quantifiable relief from their suffering as a result of cannabis therapy.  I am a believer.

Admittedly, I originally primarily saw the capitalist opportunity to legally satisfy an existing and substantial demand for cannabis along the same lines that capitalism thrives in satisfy the demand from millions of Americans for alcohol and tobacco.  Today, I see much more than just the venture capitalist opportunity.  I am a believer in the enormous magnitude of a legal cannabis industry to reignite the very American entrepreneurial spirit that has historically driven the U.S. economy, and I am a believer in the socially responsible benefits that can be realized from the medicinal and general health benefits of a legal, well-regulated cannabis industry. 

While I have served in a variety of roles since the launch of Algae International's American Seed & Oil Company operation, I am only ninety days into the role as CEO.  The Company's one-year-old cannabis operation has established a viable business model ready for exponential expansion.  My job, first and foremost, is to orchestrate the resources necessary to exponentially expand the proven business model tested in the first year of operations.

Business Summary

A. Growing:  Algae International's American Seed & Oil Company has established a rapidly expandable business model for profitably facilitating local licensed hemp and marijuana growers to maximize their market potential.  The Company has already engaged a non-equity financial investment to fund the first phase of expansion.

B. Products:  In addition to the growing operations, Algae International's American Seed & Oil Company has established its first cannabis infused consumer product trials through various partnerships.  The Company is trialing a wellness-vaporizing product and a healthy beverage line.

C. Services:  The Company has also taken a first step in developing a cannabis service offering to complement the growing operations and consumer product offerings.  Algae International has entered into a partnership with IJJ Corporation (OTC: IJJP) to develop a residential treatment facility for U.S. Veterans with post traumatic stress disorder (PTSD).

2015 Q2 Report; Plans For Revenue Growth & Balance Sheet Enhancement 

The Company recently posted its periodic financial report in accordance with the guidelines established by the OTC Markets.  This recent report is a good step forward in regard to aligning the reported information more with the current operation rather than merely reflecting the legacy of past, bygone operations. 

A. Balance Sheet Enhancement – Cleanup:  The liabilities and assets associated with past operations have been more clearly articulated than in past reports.  This clarification is a first step in eliminating stagnant assets and liabilities that may well have passed certain statues of limitations or otherwise become write-off candidates that potentially no longer have any bearing on the business at hand.  Anticipate the next quarterly report and the upcoming June 30^th annual report to reflect substantial balance sheet updates eliminating all possible, no longer relevant, legacy entries.

B. Balance Sheet Enhancement – Asset Augmentation:  Likewise, the Company is working to enhance its financial resources to support the planned expansion of its proven business model.  For instance, negotiations are under way to develop the announced investor commitment for twelve grow room operations into a secured obligation that can be entered as an asset on the Company's balance sheet.  Similar negotiations are underway regarding the IJJ Corporation partnership to build the PTSD treatment facility.  The Company has also endeavored to advance its working partnerships to trial various consumer products into equity partnerships that can add additional assets to the Company's balance sheet.   

C. Balance Sheet Enhancement – Equity Leverage Mitigation:  The development of the Company's proven business model has been managed organically rather than through the acquisition of a third party business model.  The expansion of the proven business model will require resources the Company currently does not have.  Expansion capital or cash is one such resource that can be used to hire staff and purchase raw materials to expand operations.  However, raising growth capital for early stage micro cap public companies can be very expensive in terms of the percentage of equity required in the exchange for capital. 

Given the potential expense of equity financing, the Company intends to initially mitigate the requirement for growth capital by 1) continuing to pursue conventional debt secured by assets similar to the previously announced financing commitment to fund grow room operations and 2) through the acquisition of existing operations that add operational assets in line with the planned expansion of the Company's proven business model.

D.  Accelerated Revenue Growth Through Acquisition:  The Company anticipates that 1) securing the resources to expand its proven business model through conventional borrowing, combined with 2) the acquisition of existing operational resources will together enhance shareholder value more than through the acquisition of investment capital in exchange for equity.  Furthermore, the Company anticipates a well orchestrated acquisition campaign to additionally enhance shareholder value by accelerating revenue growth beyond the current organic revenue forecast.

Thank you again for your interest and the investment of your time here today to read and learn about our Company.  I hope you will take the time to visit our website and learn even more.  Please stay tuned for regular updates from the Company.  We have a high growth business plan in a dynamic market and plan to communicate regularly to shareholders and interested investors.

Best Regards,

Steven Rash
CEO

About Algae International Group, Inc.

Algae International Group, Inc. (OTC: ALGA), through its operating subsidiary American Seed & Oil Company, Inc., is in the business of hemp production in Vermont to supply seed to the expanding hemp farming market, hemp based consumer products market, and hemp based construction material market.  The Company is also piloting a number of other cannabis related products. For more information please visit www.americanseedandoil.com.

This press release contains 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 (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.

CONTACT:

Mike Murphree
Phone:  +1-972-528-0162
Email: [email protected]

SOURCE Algae International Group, Inc.

Related Links

http://www.americanseedandoil.com

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