Green PolkaDot Box Incorporated (OTC:GPDB) ("GPDB"
or the "Company") announced today that it has entered into an
agreement with three of its shareholders, none of whom is an
officer, director, or 10% shareholder, to participate in a funding
strategy to raise up to $1.9 million dollars for the purpose of
increasing inventory and meeting development capital needs for its
first Living Produce Growing Center ("LPGC") to be erected in
central Utah.
The funding plan contemplates that this group of Investors will
pledge to sell a total of 700,000 shares of their unrestricted
common stock holdings at a price not less than $3.50 per share and
then re-invest a major portion of the after tax sales proceeds into
GPDB's Perpetual Inventory Fund ("PIF"), which pays 18% (APR) on a
two-year note. After the loan term ends, these Investors will have
the opportunity to purchase common stock up to the value of their
loans with interest back at a 20% discount to the then current
market price.
One of the three Investors has also agreed to reinvest his net
proceeds from the sale of 200,000 shares into the Company's Series
A Preferred Convertible stock to support operations and provide
funding toward Phase I of the Living Produce Growing Center,
scheduled to commence construction this summer conditioned on this
funding.
GPDB CEO, Rod Smith, explains the value of the Perpetual
Inventory Fund and impact on sales and profitability: "With these
proceeds from the investment in the PIF, when received, we can
increase inventory levels to match the expected increase in product
sales from the growing membership base and achieve profitability
sooner."
The Company plans to fund its growth through this innovative
funding strategy that also helps to minimize shareholder dilution.
Smith continues: "We are fortunate to have investors who believe in
our future and are willing to sacrifice their potential gains to
help increase inventory levels and meet the anticipated demand for
new memberships and products."
Affiliate Marketing Strategy
Since commencement of operations, GPDB has developed its core
competencies and refined its product offering to the public. Now
GPDB is poised for growth, ready to expand a tried and tested
marketing strategy using several affiliate network
organizations.
In recent weeks, GPDB has entered into marketing agreements with
some of the nation's most prolific affiliate network organizations,
including LinkTrust, ShareASale, Performance-Based, Rakuten
LinkShare and Commission Junction. These organizations combined
serve and market to several million consumers. They each are
working with GPDB to promote and sign up new members in GPDB and
promote product sales.
The Company provides incentive to affiliate organizations to
promote GPDB membership by paying a $15 referral fee for each
referred member, plus $2 per order for the lifetime of each
membership. In other words, in addition to receiving the referral
fee, referring affiliates can get paid an estimated $25 to $50 per
year on the recurring orders of each and every member they refer to
GPDB. The Company believes this is an extraordinary compensation
opportunity that motivates referring affiliates to direct their
contacts to GPDB membership benefits.
Commencing this week, GPDB will post on its Web site masthead,
in real time, the level of and increases in memberships every day.
Investors who visit www.gpdb.com or www.greenpolkadotbox.com will
be able to watch membership growth as it occurs, minute by
minute.
Smith elaborates: "We have already proven that affiliates are
very effective in referring health-minded consumers to membership
in GPDB. We anticipate that our new partnerships with these
powerful organizations will lead to the establishment of thousands
of marketing relationships with referring affiliates and sharp
increases in memberships and product sales. Our goal is to
achieve at least 15,000 total active members—an increase of more
than 300% in memberships—and more than $1,500,000 in monthly sales
by September 2014."
Smith also explained: "The projected sales will be achieved
without increasing fixed general and administrative overhead until
the fourth quarter of 2014; that with current facilities and
staffing the Company can hit these growth targets." When
asked why GPDB is not fully reporting he said: "We have
engaged auditors and plan to be fully reporting to the Securities
and Exchange Commission before the end of this year."
Living Produce® Growing Center
Smith also reported on the progress for Phase I of the Living
Produce Growing Center, scheduled to commence construction this
summer conditioned on the receipt of funding. Approximately
15% of the $2.6 million LPGC-Phase I project has already been
funded. Land has been purchased, the construction site has
been graded, and a building permit has been secured. The
balance of project costs will be funded through bank financing
backed by Utah Farm Service Agency or USDA loan
guarantees.
In addition to developing its first Living Produce® Growing
Center, GPDB's plans this year include proprietary shopping
technology innovations, including On the Dot™
auto-ship subscription software and the My Shopping
List™ order system, while expanding its product line and
leasing a second distribution center in the eastern United States
at a projected set-up cost of approximately $300,000.
"We want our shareholders to know," assured Smith, "that we are
on a fast track to accelerated membership growth and profitability,
and to strengthen the value of their ownership. We are also
preparing to up-list the Company's stock to a major stock exchange
later in the year."
About Green PolkaDot Box
Green PolkaDot Box is America's premier online membership club
for organic and non-GMO natural foods at wholesale pricing. It is
the only major online store that refuses to carry any products or
ingredients containing Genetically Modified Organisms (GMO). The
Company leverages proprietary technology with its dynamic,
interactive website and member relationship management software to
provide a unique shopping and membership experience. Green PolkaDot
Box plans to grow membership with individuals and families looking
for natural non-GMO products and organic choices for up to a 60%
discount off retail prices. For more information on Green PolkaDot
Box, please visit: www.greenpolkadotbox.com.
Safe Harbor Statement
This release includes forward-looking statements. These
forward-looking statements generally can be identified by phrases
such as GPDB or its management "believes," "expects,"
"anticipates," "foresees," "forecasts," "estimates," "Plans" or
other words or phrases of similar import. Similarly, statements
herein that describe the Company's business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking
statements. All such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those in forward-looking statements.
CONTACT: Investor Relations Contact
Rod Smith
CEO/Green PolkaDot Box Incorporated
(801) 787-8835
rsmith@greenpolkadotbox.com
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