We didn’t get the run Pao Group Inc (OTCMKTS:PAOG) last year like we thought we would. Matter of fact, things went quiet for a while until we got a new update in January from the company’s new CEO. With a new CEO and strategy, shareholders are banking on 2019 be the year for PAO Group.
First up, a little background info for those that are not familiar with PAOG. PAO Group, Inc. is dedicated to alternative patient care treatments, including the proper use of medical cannabis. Through its subsidiaries and investment holdings, the company focuses on the growing, processing, and transportation of premium medical cannabis products for the treatment of chronic and terminal patients. PAO Group’s holdings include RSB Management, Inc. – a team of highly experienced business management professionals focused on expanding the medical cannabis market in Michigan and other medically legal States in the USA. RSB manages a Michigan-based limited-liability corporation, High End Products LLC, which is currently in the process of applying for medical marijuana facility licensing in the state of Michigan through the Department of Licensing And Regulatory Affairs (LARA). “Our mission is to combat the opioid epidemic in America through the responsible use of medical cannabis.” ™ The company is headquartered in Sandusky, OH, with offices in Detroit, MI, and Miami, FL.
New CEO and Focus
New CEO Karl Riedel is taking Pao Group in a new direction after transferring its alternative medical centers to Rising Biosciences, Inc. (OTCMKTS:RBII). On the conference call, he assured shareholders that the new direction of PAOG remains in line with the original mission of the company, which is to provide patient relief through alternative medicines including cannabis treatment. His short-term goal is to expand his team’s current cannabis grow operation in the state of Michigan to a much larger scale, and he believes that the market in Michigan is ripe for expansion due to the recent passing of recreational marihuana in November 2018. Riedel brings a new management team to PAOG with diverse experience, and he is confident that market domination can be achieved through effective branding, targeted marketing, and delivering a premium quality product.
One of the first tasks the new CEO faced was the reduction of debt. Former CEO Arthur Hall’s last corporate action before resigning was to reduce PAOG’s debt by another $86,243.00 through the asset purchase of PAOG’s clinics. Furthermore, Mr. Hall ensured that PAOG received 417,852 Preferred Class A stock of RBII, along with the exclusive licensing rights to manufacture RBII’s complete line of cannabis products (including Cannophen) in the state of Michigan. PAOG CEO Karl Riedel commented:
“This transition has been incredibly smooth and Art Hall has repeatedly demonstrated his commitment to the incoming management team, the shareholders, and my new direction for the Company. Over the past 45 days through working with Art we’ve been able to eliminate almost $1.3M worth of debt including the recent $86K reduction, as well as gain a significant piece of ownership in RBII. I truly hope that investors are getting the big picture that I am building something of real value for PAOG that will stand the test of time.”
Indoor Grow and Lab Acquisition
Pao Group is moving forward with the acquisition of a cannabis grow and processing lab operation in Romulus, MI. PAOG CEO Karl Riedel said:
“The business that we are acquiring is a secure multi-acre multi-building facility, with ample room for expansion to scale with our capabilities. The acquisition includes a grow operation, a cannabis extraction and distillate laboratory along with its client base of growers, dispensaries, wholesale edibles and vape producers it has developed over the last eight years. We are very excited about the opportunity and look forward to servicing the existing wholesale client base of dispensaries and edibles companies in the state of Michigan. The ability to deliver premium quality distillate establishes our brand as a premier processor in the category, and distillate remains the backbone of the cannabis industry through its versatility across consumer products including vape cartridges.”
Currently trading with a market cap of just $3.6 million, PAOG looks to be on the right track under new leadership. If he can deliver on his strategy and execute, we will easily see PAOG trading north of $.01 and possibly much, much higher with all the excitement surrounding pot stocks.
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Disclosure: We have no position in PAOG and have not been compensated for this article.
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