Los Angeles/Desert Hot Springs, CA, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Grapefruit Boulevard Investments, Inc. (“GBI”) a Los Angeles based California corporation and wholly owned subsidiary of Imaging3, Inc., a Delaware corporation (“IGNG”) (OTCQB: IGNG) (collectively “Grapefruit” or the “Company”) is announcing that on Friday November 29, 2019 the Company filed Amendment No. 1 to its current report on Form 8-K which was originally filed on July 16, 2019 which Amendment contains GBI’s audited balance sheets as of April 30, 2019 and 2018 and the related statements of operations, changes in stockholder’s (deficit) equity and cash flows for period August 28, 2017 (inception) to April 30, 2018, the year ended April 30, 2019 and the related notes to the financial statements. (collectively, the Financial Statements) and the Unaudited Pro Forma Combined Financial Information consisting of the unaudited combined balance sheet and statement of operations of GBI and IGNG (collectively, the Pro Forma Financial Statements). Such an Amendment to a current form on 8-K announcing a reorganization transaction is often referred to as a “Super 8-K”. The Financial Statements and the Pro Forma Financial Statements were prepared by GBI’s Independent Auditor, SingerLewak LLP.

With respect to the completion of the GBI audit and the filing of the 8-K Amendment, Bradley J.Yourist, Grapefruit CEO, stated, “We are extremely grateful to SingerLewak and its team for their professionalism and dedication in conducting our initial audit which enabled us to file our Super 8-K. We also acknowledge the efforts of the entire Grapefruit family, without whose unwavering support this Company milestone could not have been achieved. Now that we have successfully completed the challenging task of preparing for and completing the audit of GBI, we will focus our corporate energy on our goal of building Grapefruit into a publically traded, fully compliant cannabis company holding both manufacturing and distribution licenses issued by California with cultivation, manufacturing, distribution and retail channels.

With the GBI audit completed and the 8-K/A filed, we will immediately make the FINRA filings necessary to effect our name and ticker symbol changes, and file all necessary Amendments to our Registration Statement on Form S-1 originally filed with the SEC on July 26, 2019 which will include the audited Financial Statements. SingerLewak has consented to the inclusion of the audited Financial Statements in Amendment No. 1 of the Registration Statement.”

Yourist continued, “With respect to Grapefruit’s ongoing operations, we will continue to ramp up our wholesale cannabis distribution activities which, as was disclosed in Amendment No. 2 to our quarterly report on Form 10-Q for the period ended September 30, 2019, were temporarily placed on hold in late March 2019 in order to insure that the cash management protocols we were using at the time were compliant and auditable and then resumed in early September 2019 once we were sure that the cash management protocols were compliant, which should result in an increase in revenues for the fourth calendar quarter of 2019 and beyond. We have also resumed the operation of our ethanol extraction laboratory which converts clean and tested cannabis “trim” or “biomass” into revenue generating cannabis crude oil. We have continued, throughout the GBI audit period to examine the acquisition of licensed dispensaries. We also continue to develop our “Sugar Stoned” and “Rainbow Dreams” lines of THC edibles and other cannabis products. Lastly, but certainly not of least importance, we continue to move forward with development of our patented THC “patchless patch” which is able to deliver a defined dose of THC to our customers over an extended period of time. We believe this “time release THC” product will be disruptive to both the recreational and medical THC markets. In California, we can load up to 1000mg of THC in a single “patchless patch” for customers that may need a larger dose to ease the suffering caused by a terminal illness or other chronic aliment. Management believes that gradual market acceptance of Grapefruit’s unique, patented “patchless patch” mechanism has the potential to drive significant revenue growth in the near future.

Yourist went on to state, “to summarize, we made a conscious corporate decision to concentrate our efforts from April to now to complete the IGNG/Grapefruit reverse acquisition, finalize the first two tranches of the Auctus financing and complete the GBI audit and the Super 8-K. Once again, we have successfully completed our three defined missions. Now we move on to getting our Registration Statement effective, completing the $10,000,000.00 Auctus funding and growing the business and concomitantly ramping up revenues. We continue our inexorable march forward to provide increasing Company value to our shareholders.”

About GRAPEFRUIT

Grapefruit is a wholly-owned subsidiary of Imaging3, Inc. Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs. Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision is to become a seed to sale, fully vertically integrated ethical and compliant cannabis product Company. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit’s Sugar Stoned branded line of cannabis and CBD infused edibles, please visit us at https://sugarstoned.com/.

Safe Harbor Statement

Imaging3 cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q for the period ended June 30, 2019 and its Registration Statement on Form S-1. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

Investor Relations Contact:
Bradley Yourist
brad@grapefruitblvd.com
18776 Blue Dream Crossing, Unit LL1 53-07
Desert Hot Springs, California 92240
(760) 205-1382
https://grapefruitblvd.com/