Irritable
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Stuart was not expressing his opinion. He was relaying the company's message regarding the issue.
The things he said about the portfolio companies selling through VNDM may very well be true, although we can't be 100% sure about that. However, what he said about the AS possibly going to 5 billion is absurd, which he knows very well. Whether management is trying to work in the company and shareholders' best interest or it consists of nothing but crooks trying to scam investors, there is absolutely zero chance they're going to allow to happen an event that would promptly drop the PPS down to a thousandth of a penny. Whether the issue can be remedied simply or requires a complicated procedure entailing shareholder approval, the AS will remain at 950 million. Stuart Smith has explicitly stated this, and he also stated that he got the information from the company. At this point, for those who are so worried about this issue that they cannot wait for the PR, perhaps the best thing to do is to contact Stuart to inquire about methods the company is looking at for ensuring the AS stays at 950 million.
Stuart's contact info:
P. 512-267-2430
F. 512-267-2530
Skype: SmallCapVoice.com
AIM: SmallCapVoice7
I can't grasp it, either. Whoever is selling through VNDM could have taken off their $0.1453 ask shortly after the open, as it was pretty obvious that the momentum was not going to carry the price through the wall. This would have given the appearance of the wall being broken down, which likely would have given more momentum to the run and propelled the price up another penny or two. Then, they could have set a new, slightly higher asking price and made even more money. Instead, we have this junk.
Stuart also stated that the matter would be addressed in an upcoming company PR. If the PR conveys the same message that Stuart conveyed in his email (that the AS will not rise), one of the major investor concerns (dilution) will have been (temporarily) addressed in a way that will make many shareholders happy.
I posted my email to Stuart regarding this issue and his reply. See one of my previous posts.
Try to focus on the essential point, Rain Man.
The essential point: MJNA doesn't intend to raise the AS; therefore, the AS will not go up.
Regardless of whether regulating entities force MJNA to go through a complicated series of actions to maintain the AS at 950 million or they permit a relatively simple solution, we know the AS will remain at 950 million. ("The authorized will stay at 950 million and that cap will remain.") This has been a major concern for shareholders for a while now, and the information in Stuart's email tells them that they don't have to worry about the AS being raised for the time being.
Email from Stuart Smith about Articles of Correction
I asked Stuart Smith about the articles of correction and whether the AS would be increased. Below is my email to him and his reply.
My email:
Hi Stuart,
People are looking at MJNA's recent article of correction in which the 2010 reduction of the authorized share count from 5 billion to 300 million was nullified, and from this, they're inferring that MJNA is making a move to change the AS back to 5 billion. Is there any information from the company at this point that could clear up this matter?
Stuart's reply:
No I have heard from the Company and this will be addressed in an upcoming PR.
The article of correction is due the clean up being done via the audit. The authorized will stay at 950 million and that cap will remain. A share increase like that would need to be voted on by the shareholders too.
Respectfully,
Stuart T. Smith
CEO & President
SmallCapVoice.Com, Inc.
P. 512-267-2430
F. 512-267-2530
Skype: SmallCapVoice.com
AIM: SmallCapVoice7
Who is the hippy behind Tripp? That's not Michelle, is it?
How much of canchew does MJNA own? That's what I thought.
There will be revenue from other than canv, but the revenue made, excluding the CANV stock, will not be enough to cover the cost of making that revenue...
We already know there will be revenue from CanChew's sales.
It's zero or near zero every day.
It was only about a half year ago that CannaVEST even acquired the production equipment from PhytoSPHERE to make CBD oil. The 2Q was their first quarter to sell the CBD oil. Many were not expecting anything at all from CannaVEST in the 2Q report. We have this 2Q income from CannaVEST, and MJNA will have a new source of income from CanChew showing up in its next financial report. Progess is being made. If MJNA can build on these results and not destroy too much investor enthusiasm with its dilution, then things might be OK.
What do you mean by "violated"?
Getting cash would be better for MJNA in the short-term, but assuming CannaVEST eventually becomes profitable through its oil sales, receiving CANV shares is obviously better for MJNA in the long-term as it will enable MJNA to obtain more money in the future as well as secure partial ownership of CannaVEST. (There's also the little fact that CannaVEST doesn't yet have cash with which to pay MJNA.) However, I also don't like the aggressive, manipulative accounting practices that were used by MJNA in the CannaVEST deal. I think it's pretty obvious that the company took investors for suckers and tried to prematurely bulk up revenue and income numbers. CannaVEST has to perform well within a few years; otherwise, the numbers used in the deal were meaningless.
Just as with endogenous cannabinoids, the body can produce too much or too little epinephrine in this or that bodily system. Taking meth as a supplement over time would lead to a decrease in the production of epinephrine and down-regulation of the receptors with which it interacts.
My original point was simply that if a compound is structurally similar to an endogenous compound and/or interacts with receptors for an endogenous compound, it doesn't necessarily mean it's beneficial to put it in one's body. Plenty of toxins also meet these criteria.
OK, then by that logic, we're made to have methamphetamine in our system because its chemical structure is very similar to that of epinephrine, and meth interacts with some of the same receptors that epinephrine does.
Know why it takes far longer to be removed from the body than man made drugs? Because we are supposed to have it to function properly.
Who knows? MJNA also put out a PR about France the other day, and they don't own France, either. I think the fact that MJNA (rather than CANV) put out today's PR is a non-issue. Ownership isn't important if CannaVEST (or France) doesn't object to these PRs or the usage of any names to which it has the rights. If you're worried, though, you can call CANV and try to report MJNA.
I think the 2013 hemp crop and the associated revenue stream are pretty relevant to MJNA. The revenue stream has to grow in the next few years, or MJNA's claimed income from the CannaVEST deal will remain bogus in the eyes of many investors.
You can short some penny stocks through "Interactive Brokers," if I'm not remembering the name incorrectly.
I doubt you believe the words you've typed. You and most others here already know CannaVEST owns equipment from PhytoSPHERE (see the excerpt from a previous PR below) and has the right to use PhytoSPHERE's name (which probably explains why MJNA's PR today still mentions PhytoSPHERE doing various things).
SAN DIEGO, Calif., March 1, 2013 /PRNewswire/ -- Medical Marijuana, Inc. (MJNA), a leading cannabis and hemp industry innovator, today announced that its subsidiary, PhytoSPHERE Systems, LLC ("PhytoSPHERE"), has entered into an agreement to sell certain of its assets to CannaVEST Corp. (FCLS) for $35,000,000. The assets sold to CannaVEST Corp. include certain equipment and inventory, web domain names, phone numbers, and all existing and pending agreements with hemp production and processing facilities. PhytoSPHERE also granted CannaVEST Corp. an exclusive license to use its brand names, logos and other "PhytoSPHERE" designations. The full text of the Agreement can be found in the Form 8-K filed by CannaVEST Corp. with the Securities and Exchange Commission on February 13, 2013.
I know another bridge-involving activity many of us wish you'd try.
I'm not sure why the final payment date is relevant to anything, so I'm not sure what you're getting at. I might have misunderstood your original post. What precisely is it that you want to know? The payments will almost certainly all be made in stock. Unless CannaVEST has sold a lot of oil lately but hasn't bothered to tell us about it yet, CannaVEST doesn't have cash with which it can pay MJNA, and I don't think that MJNA ever intended to receive cash from CannaVEST anyway. According to the last financial report I looked at, CannaVEST still needs to come up a few million dollars to cover their operating expenses for this year, and if they can't secure loans, that money may even end up coming from MJNA (just guessing here). As far as the value of the shares that MJNA is receiving from CannaVEST, it (the value) basically doesn't yet exist (except on paper). If CannaVEST brings in sufficient income in the next few years, the "real" value (i.e., the value at which they can be sold on the open market) of the shares will gradually increase, perhaps rendering MJNA's creative accounting practices accurate. If CannaVEST flops and can't sell their oil for whatever reasons, then the shares will remain illiquid and almost worthless, essentially making the PPS used in the CannaVEST deal a figment of management's imagination. This is how I tend to view the situation, though I can't really be sure this is the way it is, since apparently management would rather die than clearly explain things.
Most likely CannaVEST's payment to MJNA will be made using only stock. Whether the stock will eventually be worth the amount MJNA claims it's worth will depend on CannaVEST's future income.
Sure, Alan, that's all you're doing, just posing "questions" to provoke the bewildered herd into thinking more sensibly.
AB:
It is strictly CBD for now and probably for quite some time. What type of barriers to entry will stave off competition when the regulatory path is clear on THC? It's a lose-lose in my view. Right now, when THC is not plausible but is highly profitable, they don't participate. In the future, they will likely be a bit-player. The irony is that the value creation potential is actually perhaps the highest from CBD, but even there, we'll see how the company progresses. There, they could establish a brand and partnerships, but it's early to conclude.
1. Is the $0.05-$0.06 valuation based only on what you've calculated MJNA's book value to be, or do you have a certain P/E in mind when you mention this PPS range?
2. While it's true that MJNA currently is strictly a CBD company, I think it's a bit disingenuous to incessantly repeat this as though it were some immutable condition. MJNA's operations extend across state and national borders. If they have any business involvement with THC-containing products, they'll face serious legal troubles. So, naturally, whether they're involved with THC-containing products or not, they're not going to provide the public with any evidence indicating that they are. After legalization, whether MJNA will move to indirectly reap profits from the past sale of THC-containing products through their deal with Dixie and Red Dice and whether MJNA will move into the THC product market is anyone's guess. I think it's probable that they will, but again, the information is just not there to make this call with any certainty.
3. I agree strongly with the criticism of the lack of management. Sometimes I think that without actually making any changes "on the ground," but just by bringing in a CEO with experience, a respected name, and a much better ability to coherently communicate the company's plans and prospects to the public would send the PPS to a dollar or two (which would enable Michelle to rake in quite a bit of dough using the nauseating number of shares she has awarded herself). People don't trust Michelle and her 40,000,000 shares, and she rarely provides enough information for the average investor to figure out what the hell the company is doing.
Does anyone have any links to interviews of Michelle?
What sort of news is there about Keber on Facebook? (I can't access Facebook from my current location.)
It's true that MJNA doesn't currently benefit from the sales of any THC-containing products. However, correctly or incorrectly, people still strongly associate MJNA with marijuana right now. (Maybe it has something to do with the name.) So, after we have a majority of states on board the MJ bandwagon (which the news will make a big deal of), there could be a psychological shift of sorts in the investment community with regard to those companies that are (or are seen to be) associated with MJ, which could lead to increased investment in those companies' stocks. It's not guaranteed, of course, but it seems plausible to me.
You're claiming that ingested CBD will not make it to cancer cells in sufficient quantities and, thus, will fail to produce the beneficial effects seen in the study. This may or may not turn out to be the case, but unless you have in mind results from some CBD bioavailability studies and research on the ability of ingested CBD to enter tumors and other target tissues, you're basically just making stuff up when you claim this. More likely than not, the truth of the matter is that you have no clue as to what percentage of ingested CBD is typically broken down in the stomach, which tissues CBD tends to concentrate in, or CBD's propensity to concentrate in cancerous tissues.
The point is that since he's long MNJA and is on CNBC, he might mention MJNA in a positive light from time to time, which would mean that millions of investment-minded individuals would be made aware of MJNA, which would lead to some of them buying shares, which would have a positive effect on the share price.
The figure of 3,000 obviously doesn't refer to the number of pieces of gum they sold. You know this, too, so I don't know why you still used the word pieces. It's almost certainly the number of boxes or the number of orders.
I asked Accrafael (sp?) the same thing. When they talked to him, I think they said "boxes" since that's what he said in his post. I don't know if they meant 32-piece boxes or boxes containing different amounts or what.
Some of us called CanChew (1-877-770-3838) a week or so ago around the time they removed the "sold out" message from the website, and they mentioned that the first batch of CanChew gum had sold out and that more boxes had been produced, had arrived, and were quickly being sold. When I called, the phone operator said "batch of 3,000," so that indicates a lot of sales revenue that was generated in a very short time span. To me, this seems promising. MJNA needs this revenue to slow down dilution. Also, if CannaVEST cannot secure more loans for its first-year operational expenses, this revenue will give MJNA the option (don't know if they'll take it) of providing CannaVEST with the funds it needs to get things running.
However, to my knowledge, the company has not released any official information on the amount of CanChew gum sales done so far. Everyone should makes inquiries about it, in my opinion. Maybe the company will at least post a little update on Facebook or something like that.
You don't happen to still have all those numbers written down on a list somewhere, do you? I'd like to call and check things out, too.
www.ampakines.com
"Ampalex® has been shown in preclinical trials to be highly promising in improving cognitive function, and has been relatively free of serious side effects."
www.modafinil.com
www.nuvigil.com
en.wikipedia.org/wiki/Armodafinil?
http://en.wikipedia.org/wiki/Nootropic
When did you make your calls?
AB:
I am watching their partner CannaVEST, obviously, and they have guided to new customers coming on this quarter.
The trend you mention a dozen or so times per day exists, though it's anyone's guess as to whether it will prevail this summer as there are plenty of new factors involved.
I think the primary piece of view-changing new information is simply that you sold your shares and want to get in lower. If the price drops and you get in at a lower price, then suddenly we'll start being bombarded with graphs showing how the price rebounds dramatically from the June low each year, along with recommendations that we buy in quickly so that we don't miss the boat when price takes off.
When you take the drops without any THC-containing substance, are there easily discernible effects that set in within a short time after taking the drops?
What sort of effects did the gum have prior to using your handy dandy pipe? Were the subjective effects easily discernible?
How did the gum alter the effects of the substance from your handy dandy pipe?