LAS VEGAS, NV / ACCESSWIRE / March 18, 2021 / MJ Harvest, Inc. (OTCQB:MJHI) ("MJHI"):
On March 16, 2021, MJ Harvest, Inc. (The "Company" or "MJHI") became aware of certain promotional materials (the "Subject Materials") that third parties created and distributed. The Subject Materials included a description of the history of the Company and the business activities of the Company and then touted the Company's stock.
On January 9, 2021, the Company entered into a three-month agreement (the "Agreement"), with Alta Waterford LLC (the "Service Provider") to provide public relations services, news distribution and social media outreach regarding the Company. The Company paid the Service Provider for the services which included:
- Disseminating the company's news release(s) on MJ Harvest, Inc.;
- Building landing pages hosted online aimed at potential investors, describing the Company's business and its self-defined value to potential shareholders;
- Writing and distributing opt-in and compliant emails to generate interest on the part of existing and potential shareholders in MJ Harvest, Inc.'s business;
- Sending opt-in text messages to investors about MJ Harvest, Inc.'s business;
- Buying targeted advertising and online media to market landing pages created containing investor information about MJ Harvest, Inc.'s business;
- Directly calling large retail investors and sharing information about MJ Harvest, Inc.'s business; and
- Leveraging social media platforms including Facebook, Instagram, and Twitter to distribute information about the MJ Harvest, Inc.'s business.
The Company intended, and believed the Service Provider understood, that all materials distributed in the course of the services would be subject to the Company's review and editing and the Service Provider has indicated that this understanding was correct. In its course of dealing, the Service Provider did provide materials to the Company which the Company did edit and return to the Service Provider.
On March 16, 2021, the OTC Markets provided the Subject Materials to the Company. While much of the information was similar to information that had been seen before by the Company and edited by the Company, some of the information had never been seen nor edited. The Company believes that some of the information in the Subject Materials is misleading. The Subject Materials that we are aware of were distributed through two email addresses: [email protected] with the associated name of Merci Smothers; and [email protected] with the associated name of Herta Arnett. On March 17, 2021, the Company cancelled the Agreement and demanded the Service Provider cease and desist from any and all activities related in any way to the Company.
The Company has made direct inquiries of Alta Waterford LLC concerning whether they have directly or indirectly been involved in any way, including payment of a third party, with the creation or distribution of Subject Materials related to the Company and its securities. Alta Waterford LLC has advised that it has not been involved in any way with the aforementioned activity. In any event on March 17, 2021, the Company stopped all services provide by Alta Waterford LLC.
For the 14 trading days prior to January 14, 2021, a total of 300 MJHI shares traded. On January 15, 2021, 400 MJHI shares traded at a trading price of $0.27. The following trading day, 37,100 shares traded with a high of $2.93 and a close of $1.99. Since then, through March 17, 2021, average trading volume has been 6,745 per day. On March 17, 2021, the stock closed at $1.61. The Company notes that during this period of time, penny stocks were remarkably robust in the market but believes the effect of the promotional activities is, in part, the trading that has taken place in the MJHI stock since January 15, 2021.
After inquiry, the Company states that other than as noted above, neither the Company, its officers, directors, third party service providers or controlling shareholders were involved, directly or indirectly, with the creation, publication or distribution of the Subject Materials.
Further, other than as noted above, no compensation of any nature was paid, directly or indirectly, to any such third party to create or distribute the Subject Materials. In that the Company was not allowed to edit the Subject Materials, it cannot stand behind any statement that may be set forth in such materials. As noted elsewhere, certain of the statements made in the Subject Materials may have been misleading.
After inquiry of management, directors, control persons and third-party service providers, the Company is not aware of any sales of securities of the Company by any officer, director, controlling shareholder or any third-party service provider during the last ninety days. The Company has not in the last 12 months, engaged third party providers to provide investor relations services, public relations services, marketing or other related services including the promotion of the Company or its securities other than as follows:
- Alta Waterford LLC was engaged to provide the services set forth above; and
- Uptick Capital LLC was engaged to introduce the Company to potential investors on a private placement basis.
Except as noted below, the Company has not issued stock at a discount to market or issued any convertible instruments which permitted the conversion to Company stock at a discount to market. Prior to January 1, 2020, the Company issued shares of restricted common stock to independent contractors, including officers and directors of the Company. These shares were valued at $0.25 per share which, at that time was management's estimate of the fair value of the shares being issued. The Company's securities were quoted in the OTC Pink Market during that period and the shares were subject to significant fluctuations in value on very low trading volume. While the $0.25 value was management's estimate of fair value at that time, it did not reflect the quoted market price on the OTC Pink Market and the shares were effectively issued at a discount to market. When the Company uplisted to OTCQB in early 2020, the Company revised its practice and now records the value of the shares at the quoted market price on the date the shares become issuable.
Forward-Looking Statements:
This press release contains 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. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company assumes no obligation to update any forward-looking statement to reflect any event or circumstance that may arise after the date of this release.
CONTACT:
MJ Harvest, Inc.
9205 West Russell Rd., Ste. 240
Las Vegas, NV 89148
Telephone: 954.519.3115
[email protected]
@HARVESTMJ
SOURCE: MJ Harvest, Inc.