Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Carlson, MJNA doesn't grow anything

They don't own any land or buildings for growing marijuana or hemp.

The products that they sell through HempMedsPX are either currently manufactured by CannaVest or use CBD-rich hemp oil produced from industrial hemp by CannaVest.

For now, CannaVest contracts with European growers/suppliers to have the hemp grown and processed into a raw oil (or paste, or solid, depending on who describes the process) then imports that oil for further processing and purification that increases the percentage of CBD (and also increases the THC, but that's another story).

CannaVest is planning to eventually grow the hemp in the U.S., and has been involved in a pilot project with the University of Kentucky.

Of course, if marijuana is legalized, then high-CBD strains like Charlotte's Web and R4 will be legal, and the CBD oil from those is 20% of the cost of CannaVest's RSHO.

That's going to be a problem for CannaVest.

One last thing. CannaVest recently terminated its exclusive distribution agreement with MJNA's HempMedsPX. Right now, MJNA is being treated like any other customer, but that could change if CannaVest signs an agreement with a new sales and distribution company, or goes in-house with its sales.

MJNA needs to explain how this termination of HempMedsPX will effect its future revenue, and how they'll adapt to the potential loss of CananVest's products.