Blue Line Protection Group Inc. (OTC: EGRVD), a provider of armed protection, asset management, logistics, and compliance services for legal U.S. cannabis businesses, recently announced that it signed letters of intent with five new medical marijuana dispensaries in Nevada to provide security, compliance, and transportation services upon their license approvals.
“Blue Line expects to generate considerable revenue from these security and compliance contracts upon their final execution, increasing shareholder value,” said CEO Sean Campbell. “Prior to their being granted county licenses, these dispensaries chose Blue Line to provide comprehensive security and compliance services because of our success and expertise in this field in the states of CO and WA.”
The five dispensaries belong to a group of 18 companies recommended by Clark County to the state as the best candidates to open medical marijuana dispensaries following a three-day hearing by commissioners. In addition to these dispensaries, the company anticipates signing seven more dispensaries that were endorsed by Clark County in the coming weeks, representing a third of the 18 recommended.
While Nevada is expected to issue final licenses later this summer, the company is scheduled to begin providing services for some of the new clients beginning next month. The five to twelve additional clients will add to the firm’s existing client base consisting of 52 dispensaries in Colorado. Clark County is home to Las Vegas with over 57 million visitors per year, which suggests large security concerns.
During the three-month period ended March 31, 2014, the company generated $50,622 in revenue, $45,347 in gross profit, and a net loss of $61,270. The company also indicated in its filings that it did not have any long-term, pre-paid, or guaranteed contracts as of the first quarter of 2014, which could change following the addition of the five to twelve new clients over the coming months.
Shares of Blue Line Protection Group Inc. jumped more than 6% in early trading on Monday, June 9, 2014 following the news.
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