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Medical Marijuana Inc. Shifting to Growth Model as it Matures in the Business Cycle

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CibadermThe cannabis industry has been extremely compartmentalized, thanks to state laws enacted in the absence of wider federal legalization and direction. Although states have made a great effort to be thorough, legislation at the state level still imposes restrictions that limit business growth and offer forms of protectionism that promote the exclusion of large corporate consolidation. Entrepreneurs pioneering the industry have responded by maturing their products to better navigate the regulatory environment. What the future will hold is anyone’s guess right now, but national and worldwide cannabis legalization efforts bode well for the future of the industry.

Given that the two broad categories in the cannabis industry are recreational cannabis and medicinal cannabis, the logical conclusion is that products focused on health and wellness will receive the least amount of resistance at the national level. While the recreational market is extremely lucrative, a timeline for federal legalization that would collapse the underground market and open the door to legalized distribution is not on the visible horizon.

Entrepreneurs such as Jamen Shively—former Microsoft Corporate Strategy Manager and the founder of Diego Pellicer, a proposed ”premium” cannabis brand—are resigned to wait out the federal government. Shively, who is planning to open a chain of stores nationally (Citation 1), has met with much controversy. He’s often considered to be the voice of “big marijuana”, even as he represents only a small corner of the market. Some believe that the premium branding model won’t work with marijuana, but Shively is willing to wait as long as it takes to find out.

GrowLife, a company that markets hydroponics equipment for both large and small scale operations, is not handicapped by legalization.  But GrowLife still has a significant amount of growth tied to the access that would be afforded by the removal of marijuana prohibition.

All roads to near-term significant growth seem to lead back to health and wellness products. This revelation is not one held by a perceptive few; the flood gates have opened and numerous public companies are looking to develop the next medical breakthrough.

Then there is Medical Marijuana, Inc (MJNA) that has focused on high caliber investments and manufacturing across the cannabis industry. The company’s subsidiary profile reads like a “who’s who” of the next generation of breakout companies that can be invested in on the open market.

A great example of one of these acquisitions is KannaLife Sciences, which holds the exclusive  license agreement with the US National Institutes of Health – Office of Technology Transfer (NIH-OTT) for the commercialization of US Patent 6630507, “Cannabinoids as antioxidants and neuroprotectants” (the “‘507 Patent”). KannaLife is permitted to focus their exclusive license agreement on hepatic encephalopathy (HE), a disorder associated with reduced brain function due to various forms of liver toxicity.

Back in February 2013, Medical Marijuana Inc. created a synergistic relationship with CannaVest (CANV) through a licensing arrangement of its PhytoSPHERE assets. CannaVest is using those assets produce its new product lines—Real Scientific Hemp Oil (RSHO), Cibdex™, Cibaderm™—through its subsidiary, US Hemp Oil. These products are all infused with high quality, legal, hemp-based cannabidiol (CBD), the cannabis compound showing significant promise in the treatment of epilepsy, schizophrenia, and cancer.  Unlike most of the cannabis products people hear about, hemp-based CBD is legal and can be consumed in all 50 of the United States. CBD doesn’t have the psychotropic effects that are associated with THC, the component in marijuana that produces the “high”. CBD was recently featured in CNN’s Chief Medical Correspondent Dr. Sanjay Gupta’s special documentary, WEED, which highlighted the compound’s ability to treat a form of severe childhood epilepsy known as Dravet Syndrome.

Medical Marijuana, Inc. and its family of companies are now in a transformational phase. Much of the company’s previous activities had been focused on acquisition, strategic partnerships and product development. Now the company is transitioning some of that focus to put the fruits of its labor into the hands of the consumer.

Both MJNA and CANV are now marketed by HempMedsPX, their portfolio and contracted marketing company. HempMedsPX recently turned up the “marketing heat” with its new focused marketing campaign and retention of the medical marijuana industry icon Cheryl Shuman. Ms. Shuman will be joined by Charles Vest, the HempMedsPX VP of Communications on the Ohio Rights Group (ORG) ten day and forty-stop tour.

It’s rare to see an industry that’s not based on information technology have so much potential for growth. While news about the next greatest smart phones dominate the media, the overwhelming evidence of the genuine health and economic benefits of cannabis are filtering into the national discussion like never before. Medical Marijuana Inc. and CannaVest have clear advantages in that they have developed a completely legal product line for those that have a need today and, as such, are already equipped to be trustworthy industry leaders when cannabis is fully legalized. With unique CBD-based products entering the market, and a pharmaceutical pipeline in development, their evolution to be the next company with household name recognition in the US and international markets might be on the horizon.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

Citations

Citation 1 – Website link: http://video.msnbc.msn.com/msnbc/52723690#52723690

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The Senate Judiciary Committee Hearings Important First Steps Supporting Access to Marijuana

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The United States Judiciary Committee held its first hearing September 10th on and appropriately titled, “Conflicts between State and Federal Marijuana Laws.” The hearing comes on the heels of the Department of Justice memo providing guidance to federal prosecutors on the enforcement of the Controlled Substances Act (CSA) regarding the use of marijuana.  Sponsored by committee chairman Senator Patrick Leahy of Vermont, the hearing was largely a rehash of much of the rhetoric that has come out since the guidance memo was issued. However, it did serve to bolster confidence that the DOJ would follow through with the guidance memo’s intentions.

Sen. Leahy supported the DOJ’s efforts, but that was in definite contrast to the opinions of Sen. Chuck Grassley of Iowa who seemed to be reading from an old playbook. In his opening remarks, Sen. Grassley suggested that the DOJ was “ignoring laws that are inconvenient or it doesn’t like.” (Citation 1) He spoke as if the matter of using marijuana for recreational or medicinal use was a done deal that had already been vetted and proven detrimental to society – end of story.

Committee member Sen. Sheldon Whitehouse of Rhode Island spoke in favor of the DOJ initiatives. He chided the previous murky guidance of the DOJ and then voiced his approval of the clarification of the latest memo. While the pros and cons were jostled about, it became clear that that DOJ would not be turning back, and that the most important issue that needed to be resolved was access to the banking industry.

The importance of the banking industry’s engagement extends beyond those businesses that produce THC-based products. For those unfamiliar, THC is substance in marijuana that produces the “high.” But companies like Medical Marijuana, Inc. (MJNA.PK) – whose subsidiary companies produce many hemp products that contain the non-psychoactive cannabinoid compound cannabidiol (CBD) which is legal to consume in all 50 states – are also affected. These types of legitimate companies, as well as their merchant partners and wholesalers, can easily be deprived of the vital banking services that fuel growth.

Most businesses use long- and short-term funding in the form of bank loans to support the need for facilities and equipment and to support daily operations. Without the support of banking services, those in the supplier network – regardless of whether they are on the “accounts receivable” or “accounts payable” side of a transaction – suffer. Then there is the issue of some smaller businesses not being able to open bank accounts at all and then, in some cases, being unable to transport cash using armored car services.

As pointed out during the committee hearing, all cash businesses increase the probability of violent crime. Additionally, dealing only in cash makes auditing such businesses difficult. This notion is somewhat ironic in that many marijuana based businesses want to pay more taxes to add credibility to their businesses operations and would likely see an audit as a move in the right direction. This type of transparency is what’s needed to allow medical cannabis-based businesses to show that their operations are legitimate and that their products have a place in the consumer economy.

During the hearing, Kevin Sabet, PhD., founder of Project SAM (Smart Approaches to Marijuana) strongly voiced his opinion against “big marijuana,” comparing it to “big alcohol” and “big tobacco.” He emphasized his points by tying them to protecting children from the effects of the large-scale commercialization and marketing of marijuana. I found him to be a very passionate speaker, but he totally ignored the importance of non-psychoactive cannabis compounds and the growing evidence of their medicinal value which, recently, has been focused on helping kids. (As a side note, his recent reddit Q&A was an unmitigated disaster.)

In his CNN documentary, WEED, Dr. Sanjay Gupta highlighted the almost immediate ability of CBD to stop epileptic seizures in children. To be fair, each doctor has his differing points of interest. According to Wikipedia, Dr. Sabet “received his Doctorate in social policy” (Citation 2) and Dr. Gupta is a neurosurgeon and CNN’s Chief Medical Correspondent. (Citations 3)

So while Dr. Sabet’s views offer one point that I think all reasonable people can agree on – protecting children – it lacks the acknowledgement of the health benefits or, in a more unforgivable scenario, ignore them. There are many cannabis-related products on the market now that are completely focused on the health and wellness of their consumers, not on recreation.

The MJNA portfolio company and contracted marketing company for CannaVest Corp (CANV) HempMedsPX will be representing both MJNA and US Hemp Oil as Gold Sponsor of Natural Products Expo East in Baltimore, MD. This is just one of many trade shows on an extensive schedule, placing them in numerous venues across the US to showcase hemp CBD products. The partnership between these companies is a great example of businesses that are focused on providing products that promote the wellness of consumers. For those interested in investing, MJNA and CANV are both publically traded companies.

The Judiciary Committee hearing was an important step for congress to recognize the states’ acceptance of the will of the people and heath freedom. Those who continue to oppose the advancements that have been made should no longer ignore the inevitable.

Dr. Sabet asked the question, “why would we open the floodgates, hope for the best, and try with limited resources to patch everything up when things go wrong?” (Web Cast Link – Citation 1)

The Answer: Because without trying, progress cannot be achieved. To not try is to give up. Giving up when the reward is so great and the risk so little, is cowardly. And we learn more from mistakes than we do from shallow victories.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

Citations

Citation 1 – Website link: Click on WEBCAST

http://www.judiciary.senate.gov/hearings/hearing.cfm?id=094c28995d1f5bc4fe11d832f90218f9

Citation 2 – Website link: http://en.wikipedia.org/wiki/Kevin_Sabet

Citation 3 – Website link: http://en.wikipedia.org/wiki/Sanjay_Gupta

Photo Credit: drakodav / 123RF Stock Photo

Image credit: <a href=’http://www.123rf.com/photo_8812369_field-of-hemp-industrial-kind-of-this-plant-is-not-a-drug-but-a-resource-it-contains-hardly-any-thc.html’>drakodav / 123RF Stock

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Can The Cannabis Component Cannabidiol (CBD) Cure Schizophrenia?

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A component of the cannabis plant known as cannabidiol (CBD) is receiving much attention after Dr. Sanjay Gupta aired his special “Weed” on CNN highlighting the advantages of treating a form of childhood epilepsy with the cannabinoid.  The documentary was groundbreaking news for sufferers and their families in that it that it revealed a highly effective alternative to treatment that was not previously known to a majority of the public.  Now it appears that schizophrenia may be yet another disorder that could benefit from cannabidiol.

Dr. F. Markus Leweke of the University of Cologne in Germany has conducted clinical research showing that CBD was just as effective as the antipsychotic medication amisulpride with little or no side effects. While research is continuing, these initial results are a precursor of what could be a natural treatment for various forms of psychosis.

The Wikipedia description of schizophrenia is “a mental disorder characterized by a breakdown of the thought processes and by a deficit of typical emotional responses. Common symptoms include auditory hallucinations, paranoid or bizarre delusions, or disorganized speech and thinking, and it is accompanied by significant social and occupational dysfunction.” (Citation 1)

Schizophrenia, like other types on mental disorders, varies and often manifests into personality changes and bizarre behaviors that impede social activity and acceptance. The disorder also carries a negative stigma in society as many associate psychotic behaviors to those prone to violent criminal activity.  And yes, schizophrenia can lead to violence and other harmful behaviors.

Sufferers need new treatments that allow them to remain or become productive members of society without having to take powerful medications, many of which can have negative side effects. This is why researching and finding efficacy in natural compounds like CBD are so important.

Maia Szalavitz reported in her article on Time.com that “[r]esearchers led by Markus Leweke of the University of Cologne in Germany studied 39 people with schizophrenia who were hospitalized for a psychotic episode. Nineteen patients were treated with amisulpride, an antipsychotic medication that is not approved in the U.S., but is comparable to other medications that are.

The rest of the patients were given cannabidiol (CBD), a substance found in marijuana that is thought to be responsible for some of its mellowing or anxiety-reducing effects. Unlike the main ingredient in marijuana, THC, which can produce psychotic reactions and may worsen schizophrenia, CBD has antipsychotic effects, according to previous research in both animals and humans.”

“The results were amazing,” says Daniele Piomelli, professor of pharmacology at the University of California-Irvine and a co-author of the study. “Not only was [CBD] as effective as standard antipsychotics, but it was also essentially free of the typical side effects seen with antipsychotic drugs.”

Antipsychotic medications can potentially cause devastating and sometimes permanent movement disorders.” (Citation 2)

It’s difficult to fathom how such a promising treatment could have been overlooked for so long due to the stereotypes surrounding the cannabis plant. What many don’t know is that CBD is legal in all 50 of the United States and can be obtained from Medical Marijuana, Inc’s (MJNA.PK), PhytoSPHERE Systems and its intellectual property holder, CannaVest Corp. (OTC: CANV). I recently wrote about the compounds availability in the previous article “Medical Marijuana, Inc. and Subsidiary Partners Offer Legal CBD Now!” One of the more appealing attributes of CBD is that it appears to be highly effective without having any of the psychoactive effects associated with marijuana. The MJNA companies and subsidiary partners produce high quality CBD which is made from the hemp plants seed and stalk.

Treatments using CBD allows for powerful medications with unwanted side effects to be avoided. Antipsychotic medications are associated with reduced pleasure and motivation, and more serious effects such as loss of mobility and higher risks of diabetes.

While traditional research is the only way to validate medical efficacy, CBD as a natural constituent of the cannabis plant is available to be consumed as a dietary supplement. The MJNA companies and partners have actually anticipated the market and currently produce CBD that is delivered in advanced packaging systems that come with a Certificate of Analysis.

Some prominent CBD products that and available today are Dew Drop Hemp Oil Supplements, CanChew gum and Real Scientific Hemp Oil (RSHO). The product descriptions are listed below:

Dew Drop Hemp Oil Supplement – Dew Drops sublingual tincture from Dixie Botanicals offers hemp oil support to promote overall wellness and offer relief from the effects of everyday stress and anxiety. This unique Dixie Botanicals hemp oil product is available in both refreshing cinnamon and natural flavors and is offered at two different concentrations. Our 2 fl oz tincture is 2.5 times more concentrated than our 1 fl oz tincture. (Citation 3) Lab Results

CanChew Gum – CanChew is a delicious, all-natural gum infused with CBD from hemp oil. It’s a first-of-its-kind CBD product—a patented chewing gum containing naturally-occurring cannabidiol (CBD) from the hemp plant. Each piece of CanChew contains 50mg of CBD-rich hemp oil and approximately 10mg of CBD. (Citation 4) Certificate of Analysis

Real Scientific Hemp Oil – Real Scientific Hemp OilTM (RSHOTM) contains the highest quality hemp-based cannabidiol (CBD) in the industry. Our 98%+/- CBD-rich hemp oil is currently available in the BLUE Decarbox Pack. Additional varieties of non-decarboxylated and filtered decarboxylated RSHO will be available soon. (Citation 5)

The RSHO™ and CanChew™ gum come in high-quality packaging that outlines specific amounts of CBD for those looking for certain concentrations. The convenient, measured delivery of CBD offered by Medical Marijuana Inc. and subsidiaries is available to both researchers and the general public.  In fact, CBD can be ordered direct from the companies or on online through their websites, respectively.

Information about the benefits of CBD is spreading at a faster pace since Dr Gupta’s documentary “Weed” aired.  I believe many government leaders were listening to the doctor and may be very close to removing many barriers to research and industrial hemp farming. US Senate Judiciary Chairman Patrick Leahy just announce that there will be a Congressional hearing on the conflicts between federal and state marijuana laws on the upcoming September 10th.

While CBD is currently legal to buy, opening the door to more research through legalization will be the true catalyst to tremendous growth for early adopters of this industry such as MJNA and its subsidiaries.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

Citations

Citation 1 – Website link: http://en.wikipedia.org/wiki/Schizophrenia

Citation 2 – Website link: http://healthland.time.com/2012/05/30/marijuana-compound-treats-schizophrenia-with-few-side-effects-clinical-trial/

Citation 3 – http://dixiebotanicals.com/products/dew-drops-hemp-oil-supplement/

Citation 4 – https://www.canchewgum.com/

Citation 5 – http://realscientifichempoil.com/

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Thanks—Medical Marijuana, Inc Investors Accept Dr. Sanjay Gupta’s Apology!

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Investors in Medical Marijuana, Inc’s (MJNA.PK) showed their support for Dr. Sanjay Gupta’s recent apology about “misleading America” by not looking hard enough for the benefits of medical marijuana. The shares soared as high as 60% before declining in afternoon trading, most likely due to some profit taking, but still closed up a respectable 39.92% on the day. Volume for the day was over 37.4 million shares traded, far above the 4.7 million daily average traded.

Dr. Gupta’s revelation was completely unexpected and seemed to shock the medical marijuana community. At last count, his article “Why I changed my mind on weed” on CNN.com had 27,513 comments.  The article, which was actually published on Thursday, didn’t prompt any initial response. But about one hour into the market open on Friday, the stock started to climb. “The Gupta Effect,” which is what some have dubbed the doctor’s effect on the market, may have had a little extra help: U.S. Attorney General Eric Holder spoke about sentencing reform in a National Public Radio (NPR) interview, which he expounded upon on Monday when he spoke to the American Bar Association.

The Gupta Effect

Dr. Gupta’s endorsement of marijuana having true medicinal value will most likely be one of the defining moments that helps legalization reform and the acceleration of research.  His presence on the issue provides a gigantic leap of creditability. Dr. Gupta is “an American neurosurgeon and an assistant professor of neurosurgery at Emory University School of Medicine and associate chief of the neurosurgery service at Grady Memorial Hospital in Atlanta, Georgia.” (Citation 1) He also holds the title of CNN Chief Medical Correspondent and was asked to be Surgeon General of the United States.

His affiliation with CNN provides a media platform that is watched and respected around the world. Dr. Gupta had previously denounced the benefits of medical marijuana, so the endorsement didn’t come overnight. He cites significant research over the last year as the catalyst for his reversal—research that he shared during the CNN special documentary, WEED, which aired Sunday night.

The documentary was fair and balanced and examined the pros and cons of marijuana use from both medicinal and recreational perspectives. One of the most significant revelations he shared was that the component in marijuana that provides the most medical benefit is the cannabinoid cannabidiol (CBD), which is derived mostly from the hemp plant’s seed and stalk.

CBD does not get you high and is legal to consume in the United States. In fact, it can be purchased from the companies of Medical Marijuana, Inc’s (MJNA.PK), PhytoSPHERE Systems and its intellectual property holder, CannaVest Corp (OTC: CANV). The companies are conducting research and are improving the quality and standardization of hemp-based CBD products.

The Holder Effect

Many, including members of congress, have been awaiting a response from Attorney General Eric Holder on how the Department of Justice (DOJ) would respond to the legalization of recreational use of marijuana in Washington state and Colorado. In his NPR interview, Holder offered some bold statements that seem to be precursors to a revolutionary policy shift for the DOJ. Categorizing current policies as “disastrous” and expressing the need for leadership to roll them back are very foretelling. His policies are expected to be the catalyst for the acceptance of wider reform initiatives that have to be vetted through the executive and legislative branches of government.

Investors Accept

Obviously the title of this article is symbolic of the market reaction to Dr. Gupta’s apology and support of medical marijuana. It was chosen because there is a real benefit to the investors of MJNA, which includes the longer-term acceptance of the components of marijuana as legitimate products in the consumer market.

Two of the company’s products which are available now are CanChew gum and Real Scientific Hemp Oil (RSHO). These products come in high quality packaging that provides convenient, measured delivery of CBD that will not produce any intoxicating effects for users. This was a significant concern for parents highlighted in Dr. Gupta’s documentary in treating childhood epilepsy, who wanted their children to get the medical benefits of Cannabidiol without getting high.

I wrote a three part series on RSHO that highlights the evolution of this product and its many benefits which are linked below:

The hemp-based CBD products of Medical Marijuana, Inc. come with a Certificate of Analysis to verify CBD concentration. Most importantly of all, because their CBD products are derived from non-psychoactive hemp, both CanChew and RSHO are legal to purchase and consume in all 50 states without restrictions.

The need for more research and acceptance of the medicinal benefits of marijuana has received national attention through Dr. Gupta’s documentary.  The next event on the horizon is Attorney General Holder’s speech, the outcome of which is being analyzed as this article is published. The tide has shifted for those who need the help that the components of marijuana can provide and both suffers and patient investors will be rewarded.

Dr. Gupta’s special will re-air Friday at 10:00PM on CNN.  He has followed up with numerous interviews that offer new information on the topic. It looks like Dr. Gupta’s apology will continue to be followed by action.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

Citations

Citation 1 – Website link: http://en.wikipedia.org/wiki/Sanjay_Gupta

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