Item 9 Labs Corp. OTC:INLB
Item 9 Labs Corp. Responds to OTC Markets Request on Recent Promotional Activity
Item 9 Labs Corp. (the "Company") (OTCQX: INLB)—has been requested by OTC Markets Group Inc. (“OTC Markets”) to issue a statement about recent promotional activity concerning INLB common shares (the “Common Shares”).
On November 14, 2022, the Company was informed by OTC of certain promotional activities concerning the Company and the Common Shares traded on the OTCQX® Best Market, including an email dissemination by Broad Street Alerts and Traders News Source discussing the Company, its projects, stock price and performance, financials, and the cannabis industry. The publications also makes certain statements that are false and misleading. OTC Markets provided the Company with copies of the promotional materials for reference.
On November 14th and November 15th, 2022, the Company’s effected trading activity recorded a share volume of approximately 56,000 common shares per day, compared to the Company’s 30-day trading average of 35,778 common shares.
Neither the Broad Street Alerts nor Traders News Source were hired by the Company and/or its officers; neither the Company nor its officers were involved, directly or indirectly, with the creation, distribution, or payment of said promotional materials. The Company had no knowledge of the promotional materials until notified by OTC Markets’ Issuer Compliance Team, which monitors and enforces OTC Market’s Promotion Policies. As such, the Company had no editorial control over the content.
Where the content of the promotion may in part have described the nature of our business, we caution potential investors not to rely on these promotional and speculative statements and any claims touting future performance, anticipated trajectories of our stock price, or urging investors to take action immediately.
The Company advises potential investors that they should only rely on information provided by the Company, which manages internally all investor relations, marketing and corporate communications. More preciously, for information about the Company investors should go to the Company’s website at www.item9labscorp.com. The Company directs interested investors to rely on information contained on this website, through our press releases, and / or our filings with the Securities Exchange Commission, together with advice from an independent and qualified financial advisor to see if an investment in the Company is suitable for their circumstances.
To the Company’s knowledge, after reasonable inquiry of management, the directors and/or other control persons, its officers, directors, any controlling shareholders (defined as shareholders owning 10% or more of the company’s securities), or any third-party service providers, confirms the aforementioned parties have not, directly or indirectly, been involved in any way (including payment of a third-party) with the creation, distribution, or payment of promotional materials related to the Company and its Common Shares. The Company had no knowledge of the promotional materials until notified by OTC Markets’ Issuer Compliance Team which monitors and enforces OTC Market’s Promotion Policies.
The Company approves the activities and content of all marketing and investor relations activities carried out by our in-house team and third-party service providers, and in doing so will continue to comply with SEC, FINRA and OTC Markets guidelines and best practices. In the last 12 months, the Company has worked with the following parties to provide investor relations, public relations services, marketing, or other related services. Effective November 11, 2021, the Company hired Russell Creative Group, LLC to perform Reg A+ services focused on, but not limited to, branding, marketing, and media services. Effective March 1, 2022, the Company hired C&H Capital Inc. for a term of 12 months to facilitate long range strategic investor relations and strategic planning and other services related thereto, including business or/or financial planning. Effective March 31, 2022, the Company hired Pure Fire Media LLC to provide Digital Marketing Services. Effective September 28, 2021, the Company hired Serendipit Consulting to provide full-service public relations services.
After an inquiry by management, none of the Company's executive officers or directors sold shares of the Company within the past 90 days. To the knowledge of the Company, none of the Company’s controlling shareholders and third-party service providers have sold or purchased shares of the Company within the past 90 days.
The OTC Markets has further requested that the Company state whether it has issued any shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance. As disclosed in its public filings on EDGAR, the Company has from time to time issued shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance in accordance with the policies of the Securities and Exchange Commission. Please refer to the Company's most recent Form 10-Q for the period ended June 30, 2022, filed with the SEC on August 15, 2022, which is filed under the Company's profile on EDGAR, for a full list of convertible instruments and share issuances.
About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency and well-being. Headquartered in Arizona, the company is currently expanding its operations space up to 640,000-plus square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.
Media Contact:
Item 9 Labs Corp.
Jayne Levy, VP of Communications
Investor Contact:
Item 9 Labs Corp.
800-403-1140
Forward-Looking Statements and Disclosure
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.