Medical Marijuana

Investing In a Transformational Cannabis Businesses – MJNA

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MJNA LogoIt used to be that investing in the stock market was a highly specialized business that required a broker to execute transactions. Most folks didn’t bother to venture down that road, trusting their investments to money managers to guide their retirement accounts or mutual funds. It was usually older, more business-savvy individuals who would, for about 50 bucks a pop, call a broker and request the purchase or sale of a security. In some cases, the cost could even be a percentage of the transaction, adding to the overall cost of investing in the stock market.

How times have changed!

Nowadays, the young man bagging your groceries might go on a break and rebalance his portfolio on his iPhone™ for about $7.95 per transaction. Today, the securities market serves people of all ages and professional backgrounds.  And with the recent Gallup poll citing that 58% of Americans now favor the legalization of marijuana, many of these investors will be looking to the cannabis industry to catch the next wave of opportunity.

For those investors who are pro cannabis legalization—as well as those against legalization but who recognize a good investing opportunity—InvestorPlace author Dan Burrows might offer a good starting point. In Dan’s article, “4 Best Medical Marijuana Stocks to Buy Now,” he suggests that the possibility for “10-bagger returns” exists in the cannabis market. Citation 1

Topping Mike’s list is Medical Marijuana, Inc (MJNA). The company just released its Q3 financials and reported a net income of $7.9 million on gross income of approximately $10.4 million. Medical Marijuana Inc. has recently transformed its business model from that of a portfolio company to one that is engaged in marketing and selling its portfolio products directly to consumers through HempMedsPX™.

As the exclusive master distributor for Medical Marijuana, Inc (MJNA) and CannaVest Corp. (CANV), HempMedPX™ is overseeing the marketing and sales of the growing industrial hemp-based cannabidiol (CBD) oil product portfolio including: CanChew™ gum, Cibaderm™ beauty products and salve, Cibdex™ CBD drops, HempVĀP™  vaporizer atomizers and pen, and Real Scientific Hemp Oil™ (RSHO™) dietary supplement.

Medical Marijuana Inc. has a significant competitive advantage.  Unlike other companies whose products are based around THC, (the psychotropic compound in marijuana) Medical Marijuana Inc.’s products are based on industrial hemp-derived CBD oil that doesn’t get people “high”. In fact, these CBD oil products are legal to consume in all fifty of the United States.

CNBC’s Jane Wells recently reported from the National Marijuana Business Conference that “pot has become a very big business in this country and will top $10 billion in the next five years.” Citation 2 Now, most professionals in the industry prefer the term “cannabis” instead of “pot”, but Jane’s comments still carry a significant message. There is a lot of money to be made in this industry and it is enough to attract mainstream attention.

Jane’s data point was derived from an ArcView Group report that is predicting an increase of 64% in the industry this year, including a forecasted rise to $10 billion within five years. ArcView is doing fantastic things for the industry, like providing cannabis research and education; however, investing with them comes at a premium. The group’s websites states that “membership is open to accredited investors who are looking to put at least $50,000 into the right opportunity(ies)”. Citation 3

I believe the high cost of entry into ArcView’s investment pool to be justified, as they really aren’t trying to run a securities market. They’re looking for “high net-worth individuals” who have capital and are looking for expertise to help them to strategically position that capital in the emerging cannabis industry.

Retail investors need not worry; there are numerous opportunities for investments that can be had for any size investment (plus the low cost of the brokerage fee). The market is chock full of companies offering investment opportunities in the cannabis industry, but  not all investments are good investments. Many companies are rushing to the industry to take advantage of the expected rapid expansion as legalization proliferates and aren’t fully anticipating what the “big picture” of a legitimate cannabis industry entails.

The lucrative opportunities in the cannabis industry have caused companies to completely shift their business models, spurring many to wonder if they have a legitimate business interest or are just trying to take advantage of a trend. Dan Burrow’s Medical Marijuana Inc. picks are based on what he considers the “most established options” for investment in the industry. This is because the company has not just “jumped on the band-wagon” —they have a balanced portfolio of companies that are involved in medical research, nutrition, health and wellness and education and services. A major issue facing the cannabis industry today is one of consistent supply. There is always a question of where supply comes from, how much can be grown and by whom. If MJNA did nothing else, there is no other company in the industry that has done the regulatory legwork and created a fully compliant and consistent supply chain—a supply chain, I might add, that is unmatched by any other legitimate entity. As threats of shortages of CBD from cannabis loom large, this is a competitive advantage that should not be overlooked.

Today’s retail investors now have access to more information and have greater ability to trade on the open market than ever before. With this greater ability comes greater competition, and many investors are looking for the next big discovery to help them gain an edge on the market. While the cannabis industry is not new the growing acceptance is, and with it a massive transformation is occurring. You might want to take a look at one of the most trusted issues in the market: MJNA.

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

Citations:

Citation 1: http://investorplace.com/2013/11/best-medical-marijuana-stocks-mjna/view-all/#.Uo6VPcSsi-2

Citation 2: http://www.cnbc.com/id/101182512

Citation3: http://arcviewgroup.com/investornetwork

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Social Media – A Treasure Trove of Information for MJNA & CANV Investors

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11304978_mlThere’s been a tremendous amount of activity going on with Medical Marijuana, Inc (MJNA) and CannaVest Corp (CANV), much of which has been highlighted in recent press releases. Their exclusive master distributor and contracted marketing company, HempMedPX™,  has been busy canvassing events across the US, highlighting the benefits of cannabidiol (CBD) and introducing new products that contain the exciting compound. However, investors want to know more detailed information, and for that, social media makes an excellent starting point.

We’ve all heard the phrase “a picture is worth a thousand words.” The phrase is antiquated at best when you consider the impact of social media. Just ask yourself, “how many more words would we have if we added more pictures, video, streaming audio, and real-time discussion?” It’s not a real math problem, but you get the message–social media is a critical part of sharing information for investment due diligence.

I suggest you start with the company’s MJNA Facebook page. For professional money managers, good investment research starts with examining a company’s financials and analyst opinions. While scrutinizing this type of information is important, by the time the retail investor can find a nugget of information that would suggest that an issue is mispriced, the information is probably already factored into the market price. Financials are usually examined by professionals as soon they come out, and while the market reaction can be hard to predict, the reaction is usually definitive in direction and very rapid.

Social media, however, can assist in identifying shifts in opinion or longer-term trends that are of more value to investors that don’t have time to watch and react to every detail about a stock. Searching through the MJNA Facebook page revealed a tremendous amount of information that provided valuable details about much of the activity reported in the company press releases.

Seeing products demonstrated and smiles on faces provides for a “see-for-yourself’ experience of the transformation that the family of MJNA companies is undergoing. What you have is single portal that shows photos and video from the events HempMedsPX has attended, along with testimonials and commentary from company representatives and real users alike.

There are also Facebook fan-supplied links to more information about CBD and its many benefits. The links point to detailed research and examples of how CBD is helping people today. This information is provided by a multitude of media sources and users, so other users can quickly validate claims and opinions from multiple sources, thus streamlining the research process.

One of the more beneficial aspects of researching MJNA’s Facebook page is the history of activities. If you aren’t familiar, Facebook has “cascading dropdown” feature whereby as you continue to scroll down, new information is added for viewing. The site goes back to 2011 and has an eclectic history of MJNA company information, industry growth and evolution, as well as company news. You can really gauge the growth by how sparse the number of posts are in the earlier years when contrasted with the explosion of information that’s been posted this year alone.

Now if you have more of a trader mentality or just want to get updates more quickly, the HempMedsPX™ Twitter site provides an excellent source of information for current events and announcements. The HempMedsPX™ team will report from events in near real-time, and Twitter is the perfect platform for such news. Twitter has come a long way since its inception and now includes photos and links. The site also has the cascading-dropdown feature so researching company “tweets” is a snap.

While the roots of social media are derived from those wishing to form communities and networks to share information, social media utility has evolved into indispensable tools for businesses that want to embrace transparency and want to connect with their patrons. Through social media, you get is the company’s message augmented by user comments that provides a mode of checks and balances that investors should use to stay abreast of when looking for signs of potential shifts in market sentiment.

If you’re looking for specific product information, below are some of the products marketed by HempMedsPX™ and their Facebook pages:

The HempMedsPX™ Facebook page may be found here.

Social medial is especially important for start-up companies looking to expand product knowledge and foster loyalty through engagement with their customers.  Luckily for investors, this consolidation of knowledge provides an excellent source of research to augment the periodic press releases and bland financials. Social media provides an excellent tool for investors and it’s actually a lot of fun, too!

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

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Investors Respond to Medical Marijuana Inc’s Cibdex™ Product Release

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CibdexMedical Marijuana, Inc (MJNA) closed up 4.41% Friday after the official launch of its new Cibdex™ “CBD-Rich Hemp Oil Tincture Products” line. The stock traded in positive territory for most of the day after the morning press release and then started to rally in the late afternoon – about the same time emails started to land inviting patrons to purchase Cibdex™ at an introductory 30% discount. The drops are the most convenient way to consume CBD and are designed for everyday use. The company will also be adding capsules in the near future.

I suspect the second wave of buying was due to some investors—who had not yet seen the press release–finding out for the first time that there might be a new catalyst for MJNA as they received notices in their cell phone and computer inboxes. It’s no secret that investors have been looking to the company to add products with more mass marketing appeal.

MJNA has been at the center of the evolution of the legitimate cannabis industry. They received significant notoriety as a leader in research and development while the push for various forms of legalization gained traction nationwide. While state-level legalization efforts have been encouraging and exciting, federal cannabis prohibition worried investors who were reluctant to put their faith in a “conglomerate” business model in an emerging and “high risk” industry.

Dr. Sanjay Gupta’s CNN documentary, WEED, boosted interest in cannabidiol (CBD), and investors wanted to see more focus on marketing this astonishingly promising substance. WEED highlighted CBD’s ability to treat a form of severe childhood epilepsy known as Dravet Syndrome, yet made no mention of CBD from hemp being legally available to parents and families nationwide.

Since February of this year, HempMedsPX has taken the lead as the exclusive master distributor and contracted marketing company for CannaVest Corp (CANV) and MJNA. HempMedsPX is a portfolio company of MJNA and markets products from other MJNA subsidiaries. The company hit the ground running by marketing and selling the consumer-ready products, and has been spending considerable time and effort to make consumers aware of future product rollouts.

Featured products now include CanChew™ hemp CBD gum, Real Scientific Hemp Oil™ (RSHO™), Cibdex™ and the Cibaderm™ product lines. So far the company has only introduced a CBD salve from the Cibaderm™ product line; however, the company is currently in the process of finalizing the formulations of its CBD Hemp Shampoo, Hemp Conditioner, Hemp Body Wash, Hemp Body Lotion and Hemp Hand Cream.

These are all premium products at a variety of price points for those looking for healthy and natural alternatives and for those that want to maximize the benefits of CBD. The introduction of these products marks a significant transformation for Medical Marijuana Inc. and CannaVest Corp. While Dr. Gupta’s acknowledgement that CBD offers significant medicinal benefits was a major revelation for many consumers, the company can’t make any medical claims and markets its offerings as dietary supplements or, in the case of Cibaderm™, personal care products.

However, those that have a need for the benefits of CBD will certainly not wait for the federal government to pass progressive legislation that would support wider research. CBD, when derived from industrial hemp, is actually legal to consume in all 50 of the United States, but growing hemp in the states and more research could be achieved when legislative hurdles are removed.

MJNA’s press release highlighted that HempMedsPX  will be displaying products at the following tradeshows:

Investors should take note as these product introductions and new product rollouts take place.  As with any new product rollout, I would suspect that with the introduction of so many new products that HempMedsPX  are working through their fair share of challenges. However, each product represents a new potential revenue stream. And with industry icon Cheryl Shuman coming on board as a “Brand Ambassador,” I would suspect that Friday’s price action was a sign of promising things to come.

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

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New Product – CBD Simple, Wins High CBD Award at the US Cannabis Cup Seattle 2013

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Standing out among one’s peers in competition is a distinction that consumers and investors alike should always pay close attention to. Excellence is never an accident or the result of luck, but rather the result of hard work and dedication to craft. So when a HempMedsPXsubmission won the High CBD Award with the new product – CBD Simple – it reminded me of how new, superior products can quickly fuel brand recognition and growth.

The Medical Cannabis Cup is the result of High Times Magazine’s Editor-In-Chief Steven Hagar’s campaign to promote the personal use and cultivation of cannabis and is considered the “Academy Awards of Marijuana.” (Citation 1) To be nominated is a distinction, to win is an honor that recognizes and applauds superior performance. This analogy may seem a little heavy-handed, but when you consider the state of the cannabis industry – having finally crested the majority acceptance of the US population – this kind of public recognition could be a “tipping point” for the success of products offered by HempMedsPX.

This year’s US event was held during a two-day expo in Seattle, WA and included seminars, question-and-answer panels with industry leaders and, of course, lots of music and fun. But it was serious business for the many industry professionals in attendance. The High Times website posted a “Winner’s Gallery” (Citation 2) that highlighted this year’s winners.

HempMedsPX – a corporate portfolio company of Medical Marijuana Inc. and the exclusive master distributor and contracted marketing company for CannaVest Corp (CANV) and Medical Marijuana, Inc. (MJNA.PK) – submitted four products for judging by industry experts: CanChew gum, Real Scientific Hemp Oil (RSHO), and two prototype products, CBD Gold and CBD Simple. But it was CBD Simple that ran away with the competition.

CBD Simple tested at a record 95.8% CBD – the highest CBD percentage ever documented at the Cannabis Cup – earning the company the “High CBD Award” in the concentrates category.

This is an incredible outcome, especially when you consider that second place was a DISTANT second place, and tested at around 54% CBD. Consumers should be pleased to know that the company offers pharmaceutical-grade CBD that is available from HempMedsPX right now – and it’s from a natural hemp source, not synthetic. There is even more good news for consumers and suppliers alike: because this CBD is made from hemp oil, it’s fully legal in all fifty states.

Winning the High Times Medical Cannabis Cup is certainly a significant milestone for product developers and cultivators. However, to do it with a new product is proof that the company’s focus on new and innovative products is bearing fruit and could place them on the fast-track for solid brand recognition and accelerated growth.

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

Citations

Citation 1 – http://en.wikipedia.org/wiki/High_Times

Citation 2 – http://www.hightimes.com/view/us-cannabis-cup-seattle-2013-winners-gallery

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Medical Marijuana, Inc. and Subsidiary Partners Offer Legal CBD Now!

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The interest in medical cannabis recently spiked when Dr. Sanjay Gupta aired his special “Weed” on CNN that highlighted the advantages of treating childhood epilepsy with the natural non-psychoactive compound, cannabidiol (CBD).  Since the special aired, it has been followed by numerous exposés chronicling the benefits and hypocrisy surrounding the legalization of marijuana use. However, what the CNN documentary did not mention is that CBD is legal and available now from Medical Marijuana, Inc’s (MJNA.PK), PhytoSPHERE Systems and its intellectual property holder, CannaVest Corp. (OTC: CANV).

The availability of CBD in various markets should prove to be a tremendous benefit to those in need and does not negate legislation for legalization and other reforms. Certainly more research is in order and will be conducted as cannabidiol makes greater monetary headway. Without extensive research, some doctors are understandably reluctant to choose components of cannabis as acceptable treatments. But the exposure that medical marijuana has received over the past week has opened many eyes on this subject for the first time. The “Green Rush” is picking up steam, and I suspect that sensible dialog will continue to take shape as the benefits of cannabis and need for further research are better understood.

The Green Rush

While more of a moniker to the economic effects of cannabis on society, the term “Green Rush” also reflects a moral component to the cannabis legalization discussion. Acceptance by a majority of Americans is an important barrier that, according to the Pew Research Center, has finally been crossed. In April, Pew released the findings which stated that, “A national survey finds that 52% say that the use of marijuana should be made legal while 45% say it should not.” (Citation 1)

The percentage of people supporting legalization is most likely much higher and growing after Dr. Gupta’s documentary and subsequent re-airings. The popularity of the special has also sparked others to join in extolling the benefits of cannabis and exposing the deception that has slowed research in recent years.

The “Green Rush” is certainly underway, but I believe the defining moment will be when marijuana is removed from the list of drugs that fall under the Controlled Substance Act of the United States. The move would not mean legalization per se, but it would be the first step at the federal level of government that shows that legislators are willing to start injecting common sense into the cannabis landscape.

New Jersey Governor Chris Christie recently indicated that he would allow expansion of options for medical marijuana patients, in particular qualified children. Gov. Christie wants to make sure young patients obtain the approval of a pediatrician and a psychiatrist and wants to ensure that marijuana edibles be restricted only to qualified children before signing the bill into law. Given that Christie is a possible Republican Party presidential candidate, after approving the medical marijuana bill (with requested modifications), I think Christie would be inclined to address the “Schedule I” issue if ultimately elected. With that possibility being a ways off, hopefully our current government leaders will take action long before the next election. (Citation 2)

The Holder Effect

In a recent speech to the American Bar Association in San Francisco, US Attorney General (AG) Eric Holder revealed that the Department of Justice (DOJ) would move to cut mandatory minimum drug sentences for non-violent offenders. This is the first dialog to offer some insight as to how AG Holder will now respond to the conflicts between federal and state marijuana laws. I believe that the statements below—taken from his speech directly—addresses the reconciliation that must take place between federal and state authorities:

“This means that federal prosecutors cannot – and should not – bring every case or charge every defendant who stands accused of violating federal law. Some issues are best handled at the state or local level. And that’s why I have today directed the United States Attorney community to develop specific, locally-tailored guidelines – consistent with our national priorities – for determining when federal charges should be filed, and when they should not…

And I’ve encouraged them to convene regular law enforcement forums with state and local partners to refine these plans, foster greater efficiency, and facilitate more open communication and cooperation.” (Citation 3)

AG Holder believes that the ultimate resolution must come from the legislative and executive branches of government. But until that happens, he’s ensuring that that there is a uniform understanding that tying the hands of federal prosecutors to issue mandatory sentences is not the right approach. The cooperation with state authorities and reduced sentences of people found to be in possession of marijuana should promote the further acceptance and trust of users of cannabis and those in the cannabis industry.

Availability of CBD

The consumption of hemp-based CBD is legal in the United States and may be purchased directly from Medical Marijuana, Inc. and its subsidiaries; it can even be obtained on Amazon.com. The company’s three main CBD products are Dew Drop Hemp Oil Supplements, CanChew gum and Real Scientific Hemp Oil (RSHO). The product descriptions taken from the respective websites 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 4) 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 5) 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 6) Certificate of Analysis

The RSHO™ and CanChew™ gum come in high-quality packaging that provides convenient, measured delivery of CBD that will not produce any psychotropic (high) effects. The CBD products of Medical Marijuana, Inc. are hemp-based and come with a Certificate of Analysis to verify CBD concentration.  Dew Drop™ Hemp Oil Supplements, CanChew™ gum and RSHO™ are legal to purchase and consume in all 50 states without restrictions. All of the company’s CBD products are derived from non-psychoactive hemp. The high-CBD marijuana strains mentioned in Dr. Gupta’s documentary do not have the same CBD concentrations as MJNA’s hemp-based products and are still, unfortunately, illegal at the federal level.

The increased exposure of the benefits of medical marijuana and more specifically CBD in the media is well overdue. The merits of marijuana legalization and reform will be difficult for the congressional and executive leaders of this nation to ignore for much longer. For now, access to hemp-based cannabidiol is not an issue due to the foresight of Medical Marijuana, Inc. and its subsidiary partners to bring these products to the market in high quality packaging.  – Now it’s time to get the word out!!!

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://www.people-press.org/2013/04/04/majority-now-supports-legalizing-marijuana/

Citation 2 – Website link: http://www.latimes.com/nation/nationnow/la-na-nn-chris-christie-medical-marijuana-20130816,0,3429534.story

Citation 3 – Website link: http://www.justice.gov/iso/opa/ag/speeches/2013/ag-speech-130812.html

Citation 4 – Website link: http://dixiebotanicals.com/products/dew-drops-hemp-oil-supplement/

Citation 5 – Website link: https://www.canchewgum.com/

Citation 6 – Website link: http://realscientifichempoil.com/

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