Verde Media Group Inc. Issues Special Letter to Shareholders - Siouxland News - KMEG 14 and FOX 44

Verde Media Group Inc. Issues Special Letter to Shareholders

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SOURCE Verde Media Group Inc.

LOS ANGELES, May 22, 2014 /PRNewswire/ -- Verde Media Group Inc. (OTC: VMGI)

Dear Valued Shareholders:

VMGI is currently experiencing tremendous growth.  As the CEO of the company, I want to reach out to you and explain how we are positioning the company during this exciting time and what we are accomplishing.

To date, 2014 has seen dramatic change and growth in our business model.  With the addition of the Verde Biotechnology Corp., we've brought a new CEO on board – Dr. Abidi – and acquired two very promising companies:  Butazyme LLC and Beautyject Inc.  The financial projection for the next 5 years is above and beyond anything VMGI had aspired to previously.  We're now poised to become a globally scaled company within the next 18 months.

We've broken ground on our first Omega-3 project in Asia and have already realized revenue through a technology transfer fee with Phoenix Energy our joint venture partner.  We've also begun the process of opening an offshore facility for large-scale CBD oil importation, manufacturing, and distribution.

Our beauty and cosmetic subsidiary, Beautyject has signed a contract with a hugely successful marketing and distribution company.  Its patented cosmetic delivery systems are unique in the industry and are applicable to both commercial and residential applications and points of sale distribution. 

The Agency Division is focused almost entirely on in-house subsidiaries as we work on due diligence and market research.  Relatedly, we continue to explore the legal marijuana market in Colorado and beyond.  Therein lies some of the more exciting changes we're making in our plans for the MJ industry.

Master grower, Ryan McGowan has closed on the facility on Jason Street in Denver and is continuing with the build-up of the commercial green-house space.  The Agency Division will be orchestrating the large-scale purchase of all the lighting and growing equipment through industry partnerships in the Pacific Northwest.  Roles will also shift with VMGI and we will be bringing on additional advisors in setting our optimal facility in Asia to most efficiently produce CBD oil for import to the US.  More details regarding these agency actions will be released shortly.

Omega-3 Technology and Acquisition:

The omega-3 oil industry is projected to reach $35B market in 2020 with 8% growth rate per annum, with a decreasing supply chain and increasing consumer usage and knowledge, the time to enter the market is now. The Verde Biotechnology Corporation (VBC) has acquired a Boston-based Butazyme, LLC. Butazyme has developed a cutting edge microbial technology for the production of high value omega-3 oils rich in long chain DHA and EPA fatty acids.

The VBC business model involves developing and scaling the technology to semi-commercial stage after which the technology can be licensed to end industrial users. Towards this end we have establish a joint venture with Phoenix Energy in Asia.

Commercialization in Asia: We have recently broken ground on scaling the technology in Asia. The joint venture with Phoenix Energy "PXE" is fully financed and involves scaling and co-developing the Butazyme omega-3 technology to 20,000 liters in phase-I. Butazyme will receive a sum of $500,000.00 payment for technology transfer and 10% royalty as licensing fees per annum as part of its contractual agreement with PXE.

We are confident in achieving our milestones in phase-I so the project can enter into final commercialization stage in phase-II that will produce 1000 tons per annum of omega-3 oils. The commercial production will generate revenues upward of $25M per annum with the local feedstock secured for 25 years.

Commercialization in US: Our technology development in Asia will be instrumental in rapid scaling the technology in US. We have identified potential feedstock partners and initiated joint R&D with New England's largest crude glycerol feedstock producer. We are currently raising financing for scaling the technology using industrial feedstock in the US. Further updates will be provided shortly.

Medical Cannabis Oil Production:

Verde Media Biotech Division (VMBD) plans to set-up cutting edge Greenhouse Technologies (GHT) for the production of high value Cannabis species for the extraction of hemp oil also known as Cannabidiols "CBD" oils. These medically important oils are in high demand but the supply chain is limited because of legality in the production of Cannabis.   However, Industrial hemp products with oils rich in CBD, but negligible amounts of THC can be legally imported into the United States after regulated processing.

Extracted and refined CBD oils are used in the health and wellness industry and currently constitute a $5 billion industry that is growing rapidly each year. We have recently entered into joint venture negotiations with an overseas company in Asia to produce CBD oils. Using proprietary technologies developed by VMBD, highly concentrated CBD oil will be extracted and prepared for importation and distribution to the wholesale market.

CBD is a non-psychotropic phytocannabinoid that can be blended in food products for realizing medical benefits such as chronic pain treatments, cancer pains and neuro-protection for those afflicted by multiple sclerosis and epilepsy. The joint venture would use these selected strains highly concentrated in CBD and is expected to produce $5M revenues per annum. The overseas joint venture will complement our plans for US based production of Cannabis enriched CBD oils. We anticipate scaling the initial 20,000 sq. ft. facility to 500,000 sq.ft. in a few years to match the demand with linear increase in revenue output.

Beautyject Inc. Retail Sales and Marketing:

In April of this year, VMBD entered the medical and cosmetics industry through its new subsidiary, Beautyject Inc.  Beautyject has perpetual rights for North and South America to manufacture, market, distribute and sell the first ever needle-free injection technology specifically adapted to the beauty care and cosmetic markets.

Designed to deliver skin care treatments comfortably, accurately and quickly, without the use of a needle, the company will provide clinical grade skin care products to assist physicians and aestheticians with their procedural skin care needs. In addition, Beautyject will provide over-the-counter products for customers who choose not to have professional treatments.

Commercialization:  Currently, Beautyject has signed an agreement with a successful, internationally recognized distribution group that utilizes far-reaching relationships with major broadcasting and satellite TV networks.  The group has a proven track record, having successfully marketed and sold more than $4 billion worth of products to date. 

This agreement has been signed and is moving forward with direct sales, marketing and distribution functions for its needle-free kits and products.  VMGI will be releasing details about the agreement in the near future.

The anti-aging market was estimated at $274.5 billion in 2013 and is projected to reach a trillion dollars by 2025.  With increased demand for multi-feature products with anti-aging and anti-wrinkle properties driving market growth, Beautyject is in line to reach $18.5 million in top line revenues for its year-end 2015.

We look forward to continued success throughout 2014 and thank all of our shareholders for their support of VMGI.  We will continue building value and delivering results as each Division of Verde grows.

Sincerely,
William F. Veve
CEO

For more information, visit www.verdemediagroup.com, or connect with the company on Facebook. Twitter- @Verdemediagroup

DISCLAIMER: CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
The results described herein cannot be guaranteed. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions.

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