DNA Brands Inc (DNAX)

[Ed the Trader]

Is DNAX going to pot?

DNA Energy, in its December 18, 2014 Shareholder Letter, stated,

"On a more optimistic note, we would like to move forward with the development of a new and fully proprietary functional beverage which is not yet in the marketplace. We have received the support from a prominent member of the medical community to do a clinical study at little or no expense to the Company. If we are able to secure adequate funding, which is not a certainty, we can have this product ready for market in 6-8 months."

Source: www.dnaenergydrink.com/DNAenergy/index.php?option=com_content&view=category&layout=blog&id=57&Itemid=116 

So, what sort of beverage would an energy drink company produce that would require clinical testing in the medical arena?

Note that DNA Energy is incorporated in Colorado even though their corporate headquarters is in Florida. Also, note that marijuana (both medicinal and recreational) is legal is Colorado. Further note that medical marijuana would be foremost in the minds of anyone who lives in Florida as the state just defeated a proposed constitutional amendment to legalize medical marijuana.

What if DNA is going to produce some sort of energy drink that contains Cannabidiol (CBD) or Tetrahydrocannabinol (THC) to, for instance, combat the effects of chemotherapy treatments while giving tired cancer victims (because people with cancer are often tired) an energy boost?

Note that DNA has had actual energy drink products in retail stores for years so the concept that they start producing some form of energy drink which contains some form of marijuana extract is not pie-in-the-sky. Reformulating one of their existing great tasting energy drinks (and DNA has won TWO worldwide taste competitions with their energy drinks) to include one or more components of marijuana would be quite easy. Of course, the same is true of any other medicine but medical marijuana is what is popular right now.

Does anyone want to speculate about what release of such a product would do to the demand for DNAX stock?