Grapefruit USA, Inc. (OTCPINK “GPFT”) Reports 248% Revenue Growth Year over Year

Los Angeles/Desert Hot Springs, CA, April 13, 2020 (GLOBE NEWSWIRE) — Grapefruit USA, Inc., (“GPFT”, “Grapefruit” or the “Company”)) (OTCPink: GPFT) a California based cannabis company, is announcing today that in its annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC last Friday, the Company reported net revenues of $451,196, an increase of 248% over revenues of $181,502 for the year ended December 31, 2018, in January of which it was first licensed by California and commenced cannabis manufacturing and distribution operations. This significant increase in revenues occurred despite the fact that the Company suspended its then current largest revenue producing operations, wholesale cannabis distribution, from April to September, in order to confirm that its cash management protocols were fully compliant with California reporting standards such that the Company’s financial statement could be audited. The Company restarted distribution operations in September and such operations are continuing to the present moment. The Company posted a net operating loss attributable to payments to legacy creditors of Imaging3, Inc. in connection with the reverse acquisition of Imaging3, (the “Acquisition”), abnormally large legal fees, accounting fees, audit fees and administrative and other costs incurred in connection with the Acquisition, all of which management believes will not be recurring. For a full analysis of the Company’s results of operations see the Company’s Form 10-K at pages 20 and 21.With respect to Grapefruit’s 2019 annual report, Bradley J. Yourist, Grapefruit CEO, stated, “Now that the audit is complete, the amended 8-K in connection with the Acquisition has been filed, the 2018 and 2019 full year audits for GPFT are completed and the 2019 10-K has been filed, our securities compliance foundation is in place. Grapefruit is committed to staying in compliance on all levels and everyone on our team understands the importance of this hard work. We are conducting cannabis’ distribution operations and we have our cannabis extraction lab in operation. Work is progressing on our potentially disruptive patchless-patch which we intend to bring to market late in the second quarter. Now that the 2019 audit has been completed, we will be filing Amendment #2 to our S-1 registration statement this week and we expect that to be declared effective later this month at which point our investor is obligated to release additional funding to the Company. These cash infusions should fuel revenue expansion in the later stage of the second quarter and into the third and fourth quarters of 2020. We have brought on new Board member Mr. James Jordan who has already provided positive input and contributed to our networking efforts in connection with our distribution operations. We have executed our Data License Agreement with www.BudTrader.com which is already displaying a Grapefruit banner which clicks through to Grapefruit’s website’s investor relations page. Other initiatives are in progress. Overall, 2019, although challenging with respect to the audit issue, was very positive. We look forward to a more successful 2020, which is already off to a superb start, as Grapefruit marches inexorably toward its goal of becoming a leading U.S. based fully integrated cannabis company.”To learn more about Grapefruit, please visit our website at:https://grapefruitblvd.com
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About GRAPEFRUITGrapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs. Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision is to become a seed to sale, fully vertically integrated ethical and compliant cannabis product Company. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit’s Sugar Stoned branded line of infused edibles, please visit us at https://sugarstoned.com/.Safe Harbor Statement
           
Grapefruit cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words “anticipate,” “believe,” “estimate,” “may” “intend,” “expect” and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q for the period ended June 30, 2019 and its Registration Statement on Form S-1. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.Investor Relations Contact:
Bradley Yourist
brad@grapefruitblvd.com
18776 Blue Dream Crossing, Unit LL1 53-07
Desert Hot Springs, California 92240
(760) 205-1382
https://grapefruitblvd.com/