Prominex Provides Further Update on Its Activities in Medical Marijuana and Hemp Industries - Seite 3

Change in Laws, Regulations, and Guidelines

The Company's operations are subject to a variety laws, regulations and guidelines relating to the manufacture, management, transportation, storage, and disposal of medical marijuana and hemp but also including laws and regulations relating to health and safety, the conduct of operations and the protection of the environment. Any delays in obtaining, or failure to obtain regulatory approvals would significantly delay the development of markets and products and could have a material adverse effect on the business, results of operations and financial condition of the Company or any company that it may invest in or acquire. 

Limited Operating History

The Company has yet to generate revenue from the production or sale of products. The Company is therefore subject to many of the risks common to early-stage enterprises, including under-capitalization, cash shortages, limitations with respect to personnel, financial, and other resources and lack of revenues. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of the early stage of operations.

Future Financing

The Company and any company that it may invest in or acquire will require financing for the building and operation of facilities and business, which are capital intensive. In order to execute the anticipated growth strategy, the Company and any company that it may invest in or acquire will require equity and/or debt financing to support start up and on-going operations, to undertake capital expenditures or to undertake acquisitions or other business combination transactions. There can be no assurance that additional financing will be available to the Company when needed, if ever, or on terms which are acceptable. The Company's inability to raise financing to support on-going operations or to fund capital expenditures or acquisitions would limit the Company's plans and would have a material adverse effect start-up and planned operations. 

Board and Shareholder Approval Required

The Company will require the approval of board of directors to invest in or acquire any company or project in the medical marijuana and or hemp industry. In addition, the Company will require the approval of the shareholders at a Special Meeting convened to approve and ratify a resolution for the Company to invest in or acquire any Company or project involved in the medical marijuana or hemp industries. There is no guarantee that the board of directors or the shareholders would approve any transaction to invest in or acquire a project the in the medical marijuana and or hemp industries.