CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

No, MJNA didn't get "screwed".

The deal with CannaVest was structured to create the impression that MJNA was getting a lot of money for Phytosphere, when it was worth considerably less. My guess it was a favor to MJNA.

Then, they were paid quarterly at an increasing rate (except for the last quarter,) at $4.5M, $6M, $8M and $10M, with the final at $6.5M so that MJNA could show increasing net income throughout 2013.

But even while CANV was making the final couple of payments, they were planning to sell shares at $1 to raise much-needed actual cash, and then in 3Q/13, they wrote off something like $24M in "goodwill" from the deal, then in 4Q/13, revalued it to $8M (somebody nixed the goodwill rightdown).

By that time, it didn't matter what the stock would be worth, because MJNA got to report all that extraordinary income throughout 2013.

Regarding CannaVest going to $200, that was because there were so few free trading shares, maybe 20K - 50K (it's in my SA article) and with so few shares to short, probably some manipulation to create short squeezes, while Stuart Titus, who owns General Hemp and needed funds to create KannaWay, sold shares as it rose and fell, grossing about $7M.

The CANV run may have been similar to what happened with the recently suspended stock that was covered in this SA article.

Part of the reason MJNA went to $0.50 was the "marijuana madness", but also the fact that when CANV hit $200, MJNA's shares were worth $1B on paper.

Sure, MJNA's and CANV's sales have increased, mainly thanks to the (what I think will be short-lived) KannaWay boost, but neither one is generating revenue or income that justifies the multiples in the 100s.

And that's why CANV is gravitating to a "real" price.