PotNetwokr Holding Inc. (OTCMKTS:POTN) has released a “Letter to shareholders” from the CEO and President, Kevin Hagen which gives an update of the event and result year to date.
The letter indicates that PotNework Holdings is now a fully reporting SEC company. The accomplishment means that in the last two years the company has been fully audited. Equally going forward the company will at the end of every year get an audit and its statements reviewed each quarter by PCAOB auditor.
With the new status, the company is now planning to complete its application to OTC markets for up-listing to the OTCQB market tier.
2019 business updates
The company’s Diamond CBD subsidiary continues to be the main source of revenue for the company. The media division which is the publisher of the PotNetwork.com and the PotNetwork magazine continues to develop and implement their revenue models.
The management team acknowledges the growing competition in the CBD segment. The company has experienced increased wholesale price pressure on its major products. The sales team has addressed the challenge by becoming aggressive in pricing to distribution which resulted in reduced margins.
The company reduced operating expenses in the second quarter in line to projected gross profit for the period. The company embarked on financing agreements last year in a bid to expand its Diamond CBD business. The agreements are at reasonable interest rates and have long term maturity which gives the company the alternative of retiring the debt in share or cash.
Introduction of new product line
The company has made a move in the “Health and Beauty” market with the introduction of several topical products. Diamond CBD is finalizing preparations of products like shampoos and hair conditioners. The company expects to erase the mid-year revenue variance by then end f this month with these new introductions.
Diamond CBD has been doing tradeshows and this tea they have attended seven major shows. In the second half of the year, the company will continue enhancing its brand awareness by participating in major trade shows. The Health and Beauty products will be added in the expositions.