Los Angeles/Desert Hot Springs, CA, March 23, 2020 (GLOBE NEWSWIRE) -- Grapefruit USA, Inc., (“GPFT”) (OTCPink: GPFT) a California based cannabis company, is announcing today that the COVID-19 disruption has caused minor delays in the audit of its financial statements for the year ended December 31, 2019, and consequent delays in filing of its annual report on Form 10-K and Amendment #2 to its Registration Statement on Form S-1. Initially, the Company planned to file its 12/31/2019 Form 10-K and the Registration Statement Amendment the week of March 16, 2020, however logistical delays partially caused by the intensification of the COVID-19 outbreak have delayed completion of the audit. Currently, the Company believes the audit will be completed by the end of the week of March 23, 2020 and the 12/31/2019 Form 10-K and Amendment #2 to the Form S-1 Registration Statement will be filed as soon as practicable thereafter. The Company intends to host a conference call for shareholders, analysts and all other interested parties soon after the filing of the Form 10-K and Amendment #2 to the Form S-1 Registration Statement. Details concerning the conference call will be made available to the public as soon as they are available.
The Company continues to make significant progress with respect to growing revenues despite logistical headwinds caused by the gradual slowdown of the US economy engendered by the COVID-19 breakout in America and barriers to normal commerce in California. Sales of cannabis products in California appear to have increased as Californians search for ways to deal with and lessen the negative effects of the virus. On Thursday, March 19, 2020 California State Governor Gavin Newsom issued a stay at home order to protect the health and well-being of all Californians and to establish a consistent approach across the state to slow the spread of COVID-19. This Order went into effect on Thursday, March 19, 2020, and is in place until further notice. The Order identified state licensed cannabis businesses such as Grapefruit as “essential” because cannabis is an essential medicine for many California residents. This Order allows the Company to continue its operations despite the stay at home order. The Company has implemented the CDC’s guidance on social distancing and anti-congregating measures in order to operate effectively during this time.
Sales of bulk cannabis flower and cannabis crude oil have been encouraging as the Company continues to engage in distribution operations involving high quality cannabis flower and cannabis oil and crude as the virus crisis emerged and seasonal demand increases.
With respect to Grapefruit’s current state of affairs, Bradley J. Yourist, Grapefruit CEO, stated, “Grapefruit continues to move forward despite the wild gyrations of the international capital markets and the discouraging panic occurring in the US equity markets. While we of course are disappointed by the performance of our common stock price which we believe has been in sympathy with the general market down turn, we want to reassure our shareholders that our corporate operations continue unabated by the general disruption of US business activities. Our industry is decoupled from most normal US business and may actually be positively affected by the global chaos imposed on the world community by the initial outbreak of COVID-19 in Wuhan, China and its rapid export to and spread throughout the rest of the globe. Notwithstanding the tumult currently prevailing in certain US business segments such as travel, hospitality and restaurants and its waterfall effect, Grapefruit will press steadfastly forward with the completion of our audit and the timely filing of our Form 10-K and immediately subsequent filing of Amendment #2 to our S-1 Registration Statement. Thereafter, we will request acceleration of our registration statement and upon effectiveness thereof, additional funding will immediately ensue.
These upcoming capital infusions will allow us to accelerate the process of expanding our cannabis oil production, distribution operations and sales of cannabis products to continue rapidly growing revenues and create additional value for our shareholders. We believe that as long as we continue to take these steps to grow revenues and report positive results our stock price will eventually reflect our Company’s proper value.”
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About GRAPEFRUIT
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 infused edibles, please visit us at https://sugarstoned.com/.
Safe Harbor Statement
Grapefruit 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/