Dear Shareholders:
Freedom Town Holdings (FTH) and Fluent’s breach of contract has had a negative impact on CATV’s revenue. As a result of FTH and Fluent’s payment default we are not listing the revenues on the financials. Our revenues, but for the breached contract, would have been substantially greater.
However, our financial future is not dependent on the farm revenues. If you look at last years’ revenues, a large percentage of the revenues came from the sale of Can It Pods. We have increased that side of the business. Building out cultivation facilities and selling them is not a deal that you do overnight, takes planning, design, and a lot of negotiating to get a client to sign a construction deal and finance it as well. Currently, we are working on several potential contracts where we will build their cultivation sites from our units and technology of Can It Pods.
We have also realized that the profitability in the hemp market is not in cultivation but more in product sales. In that respect we are relaunching our www.hip4all.com website for direct to consumer. At the same time we have signed a probationary period contract with Mr. Checkout to get our Hip Water out to their distribution channels for our B2B business.
As to the farm in Florida, the farming of hemp is not a profitable business. The farming of Marijuana is far more profitable, yet licensing gets in the way on a state-by-state basis. Right now Florida licenses are selling for just the paper, no assets, upwards of $50 million. For those keeping up with the Florida rules, new licenses are coming out as well.
Only four options exist for the property:
We listed the property to find another MMTC license holders to come and do the same transaction we had with FTH and Fluent as MMTC. Competing for a license will be difficult. There will be hundreds if not thousands of applicants for only another 22 licenses. Therefore, to ensure that, if we do not purchase a license, or get one through the application process, that we then have one of the licensees that does get it come into the facility to do their growing.
Sincerely,
4CABLETV INTERNATIONAL, INC
Michael Feldenkrais, CEO
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding 4Cable TV International's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see CATV's OTC Market filings.