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Not Serious, Only Terminal
Kannaway has been contracting for a bit more than a year now, it's impossible from the outside to know exactly when they passed the "point of no return" but it is clear they have. At this point the only rational thing to do is maintain a skeleton staff and try to sell off inventory but even that will not be all that easy.
Kannaway never sold a product at a price point to generate or sustain customer interest. If you wanted CBD based products you could get far better far cheaper if you shopped elsewhere. Instead Kannaway sold the "business opportunity," the chance to make money by purchasing products and recruiting other people to do the same. Please note this doesn't match the legal definition of a pyramid selling scheme, only the functional one. So from a selling off of inventory perspective they either need to recruit new affiliates (which isn't happening) or just go the fire sale route of 50% off sales. Selling at a loss makes sense if inventory is an otherwise sunk cost.
Kannaway might have been salvageable at the time MJNA shareholders were bilked out of 833 million shares for purchasing the company but it would have required a major shift in business focus. The "teach three to reach three" chain recruiting product sales model should have been scrapped and price points adjusted to create viable retail sales. Nothing like this happened and in one wave (Seth Fraser's ProTravelPlus) or another (Stewart Titus' Forever Green) every recognizable "field leader" left Kannaway and took as much of their "downline" with them. The April 20th 2014 "launch event" filled a good size hotel conference room and that was just the people willing to fly out to Vegas, today's total active affiliate base could fit in a hotel room.
WOW !!! CONFIRMATION of HOW DESPERATE
MJNA is for anything like good pub. MJNA's PR reads:
"We are honored and excited to see our flagship product Real Scientific Hemp Oil™ appearing in coverage from the Wall Street Journal," states Dr. Stuart Titus, the CEO of Medical Marijuana, Inc. "The mainstream media is finally taking notice of the wonderful impact that RSHO™ had for the people of Brazil."
Yea they Do, But Eventually
they'll run out of suckers willing to invest in nothing, nothing at all but that ticker. Actual earning would be nice or absent those, a cogent plan for eventually for getting off the treadmill of issuing endless shares to paper over their growing debts.
MJNA is among the stinkiest of the pinkies and even though the deck is stacked against the retail investor there may still be money to be made on swings. At least until marijuana actually is legalized at which time the only thing MJNA will have left to sell is "the best ticker out there.".
You Do Know That PR Is
more than two years old, right?
Yea, Funny Thing About That
Gen Hemp did in fact claim they were indemnifying MJNA against the cost of the Kannaway trademark suit but the Q1/15 report lists over a million in legal and professional expenses. Over 75% of those were indicated to be coming from Kannaway. Beside the trademark suit I'm unaware of any significant legal issues Kannaway was facing and certainly none to account for $767K in fees.
Not like I'm accusing Gen Hemp of dishonesty, heaven forfend. I just don't see how the numbers line up.
The Real Problem with their Suit
is that even if they win they will never be able to prove damages. The Project CBD report came out on October 17th (there abouts, going by memory) and at about that same time there was the misunderstanding with a Yahoo reporter that seemed to say that MJNA's earning were VASTLY higher than they really were. This had the effect of artificially inflating the stock price for a while.
How can MJNA claim that the Project CBD report harmed them when they're stock price was climbing? Maybe they can point to Kannaway's sales numbers falling? So damaging was that report that it caused Kannaway's sales number to drop for several months before it was even published. Hell maybe MJNA can retroactively blame Project CBD for the failure of the Red Dice partnership, or the toxic split with Cannavest. Maybe it was Project CBD and not Micheal Llamas who should have been indicted in the Loomis mortgage fraud case.
Yes However like MJNA you Neglect to Mention:
Medical Marijuana Inc.’s lawsuit rests entirely on MJNA’s allegation that Project CBD based its Report on invalid test results provided by Stewart Environmental Consultants, an analytical lab in Colorado.
This is demonstrably false.
The Project CBD Report (pp. 17-19) discussed the conflicting test results produced by Stewart: “The initial results appeared to confirm [that] the RSHO contained high levels of several heavy metals, including nickel, selenium, molybdenum, arsenic, and silver. A few days later, Stewart Environmental Consultants issued a second report that contradicted its earlier findings: Five numbers, all pertaining to heavy metal toxins, were changed from unsafe to safe levels.”
Contrary to Medical Marijuana Inc.’s assertion, Project CBD accurately reported Stewart’s second set of test results purporting to correct its original findings.
Project CBD also accurately reported that two other independent labs, including a DEA- and FDA-registered facility, found significant levels of toxic solvents in other RSHO samples that were never tested by Stewart. Medical Marijuana Inc. neglected to mention these lab results in its lawsuit.
It's a bit Premature to Say
that either side is winning or losing that court case. The only thing decided thus far is that MJNA has enough of a case that their complaint can't be dismissed with a preliminary motion. The substance of that complaint hasn't even had a hearing yet.
MJNA has Nothing to do with Medical Marijuana
They purchase industrial hemp oil and resell it. After marijuana is completely legal on a federal level and the tax laws are changed MJNA then intends to start doing something or another with weed. Until then MJNA is marijuana in name only.
So How Happy are You
with a new 52 week low?
Isn't it about time for MJNA to publish another PR reminding people that anyone in Brazil with a perception and an import license can buy RSHO? You know, either that or just buy the real thing much cheaper from someone in their neighborhood and avoid all the paperwork.
Greens12, Doc's Right.
The shares General Hemp pilfered from MJNA's shareholders in exchange for the mouldering corpse of Kannaway have already been included in the outstanding shares number.
As to the before and after O/S numbers, the public disclosures are all on the OTC Market's MJNA page.
Cogent Argument Sir
GHI needs to pay for higher quality shills.
I'm Sorry but I Have No Idea
of what you're claiming here. To be clear, I never want anyone to take anything I say as gospel, I want everyone to do their own due diligence before making a decision to invest. So let's just run down a few points you claim I'm falsifying.
1: General Hemp (Llamas and Titus) sold Kannaway to MJNA shareholders late last December for what was then $100 million in MJNA stock.
2: General Hemp owns a yet undisclosed percentage of the MLM company Forever Green. Don't take my word for it, listen to Stuart Titus shortly after the three hour mark on this video.
3: After General Hemp invested in Forever Green former key members of Kannaway's field and corporate structure have joined Forever Green.
4: At about the 7:55 mark on this Forever Green Conference call former kannaway field leader Billy Funk announces a new FG product which he describes as a tincture with CBD, MCT and Korean Bi Bong herbals. Why that sounds very much like Kannaway's Rev!ve product line. Only if Kannaway isn't selling it MJNA shareholders are not going to be earning their full share of profits from the sale. In fact it wouldn't surprise me to see more of what will soon only used to be kannaway's product line being sold through Forever Green. This of course would increase General Hemp's profits at the expense of MJNA.
So, please do tell me what I am wrong about. What am I falsifying? How is my reasoning false? And i know I'm being insanely optimistic in making this last request, but when you do reply, present facts to back up your arguments.
General Hemp is Looting Kannaway Leadership
Not long after General Hemp (Titus and Llamas) sold the failed MLM company Kannaway to MJNA shareholders for $100 million in MJNA stock they went on to purchase an equity stake in another MLM company Forever Green (FVRG). Now, as if by some strange coincidence a large portion of what remained of Kannaway leadership is joining Forever Green as well.
A stray facebook post:
And just to highlight:
Micheal Llamas is being thanked for his role in setting up what I'm sure was just a super terrific Forever Green pep rally in Utah. Not only is Llamas helping to pimp a MLM company he and not his share holders hold an ownership position in but look at the names of some other people who were similarly thanked. The "Ryan" mentioned just after him is Ryan Vanderpool who was and may still be a salaried employee of MJNA owned Kannaway. Ray is Ray Dietrich who along with also mentioned Billy Funk were the two remaining recognizable "field leaders" in Kannaway. About half of the other people mentioned in that post used to be in Kannaway as well but now they are all in Forever Green which I will repeat, General Hemp (Llamas and Titus) hold a percentage of ownership in.
So why is General Hemp pumping time money and former Kannaway personel into a MLM company that MJNA does not own? Because they know even better than I do just how dead Kannaway is. But if that's true why did they dump $100 million in MJNA stock into their own pockets in exchange for Kannaway? Because nothing short of a share holder class action suit could stop them from getting away with it.
Still No Answers?
You've posted repeatedly about MJNA removing their "bad apples" and seemingly how impressed potential investors should be now that all the people who were dragging this company down and holding it back are nothing but a receding speck in MJNA's rear view mirror. Yet you failed to mention a single "bad apple" that has been terminated.
I am sure this has just been an oversight on your part and one you will be most cheerful to correct.
Name One "Bad Apple"
that has been permanently removed?
Llamas still owns more shares and holds more sway than anyone else. Titus was co beneficiary with Llamas of the hundred million dollars in MJNA stock that got exchanged for a dead MLM company that was previously owned by,...Llamas and Titus. Michele Sides has been Llamas' codependent enabler and proxy since before the two conned their way into MJNA ownership.
THESE are the bad apples who need to be removed for MJNA to begin to prosper and they all still are running MJNA. Again, what "bad apples" have been removed from MJNA?
Easter Egg Hunt
Let's see if anyone can find any news story about Puerto Rico's medical marijuana legalization that even mentions Kannaway. Their own PR excluded of course.
Further more the legalization isn't even good news for Kannaway or MJNA. Who would want to buy industrial hemp oil when they can buy the real thing and almost certainly cheaper?
Thank You Kindly
Give them a Call
and please tell us what important information GH Investment Advisors* has for us.
* Despite the name they are not licensed investment advisors.
The Real Funny Part
if you already paid $199 for a full year they'll give you what amounts to "store credit" for the difference.
I did find a couple of videos they had done during their four month hiatus from YouTube but were set to private. I can't really understand why they were however. They didn't provide any information about the status of the company or address why pretty their entire field leadership had left Kannaway. All they were was comp plan rejiggering and reinstituting old bonus promotions which never helped the previous times they were tried.
Kannaway never provided consumer value. They never brought to market a product at a price point that would drive customer sales. Instead they focused on paying their affiliates to buy their products but the only way to make that happen is for each affiliate to recruit enough other affiliates to earn more than they spent in the first place. Which of course means that +-90% of all kannaway affiliates lost money each and every month. Which of course means that a larger number of affiliates need to be recruited than quit in any given month and my best guess is the last month that happened in was July of last year.
I don't pretend to have access to their recruitment numbers and if kannaway published them today I doubt I'd take their word for them. There is however objective proof. Kannaway never attracted legitimate "top shelf" field leadership, the type of people who can swing four digit downlines, they only scored more "mid level" people looking to make names for themselves. Nothing wrong with that but all of those mid level leaders who were the public face of the company have, pretty much to a man, left the company.
Kannaway has been shrinking in nearly every way since last summer. So much so that about the only recognizable names involved in the company are on salary (and of those even Charles Vest has left). If any bright ambitious securities attorney out there contemplates stating a share holder class action lawsuit over the 833 million shares of MJNA stock Stuart Titus and Micheal Llamas gave themselves in exchange for selling a dead MLM company to MJNA, just look into some of the filings in the Kannaway v Cannavest trademark suit. That will give you a pretty good thumbnail of just how sketchy that deal was.
It Wont be Available on a Retail Basis
so it wont be sitting on store shelves for just anyone in Brazil to purchase.
any resident of Brazil who has a government-approved medical indication can have access to RSHO™ hemp oil products and may do so with both a doctor’s prescription and government-approved import documentation.
HempMeds Brasil™ is providing the RSHO™ exclusively for the Brazilian marketplace while under temporary broad approval for additional medical indications, subject to clinical trials within the country.
If That Phone Number is Legit
and I'm not calling you a liar allkinds but a little skepticism is a healthy thing on the internet, but 858-264-6500 is one of the phone numbers for GH Investment Advisors. MJNA's shareholders information firm.
All it Means is their Is an Issue
to be settled before a court and that argument hasn't even begun yet.
But also look at this from a "court of public opinion" standpoint. Project CBD is well respected in a very activist community. There are (very conservatively) hundreds of blogs, websites and social media pages being run by more or less tightly related pro legalization activists and many of them see Project CBD as one of their own. A feeling they do not have for MJNA. By attacking Project CBD, MJNA risks alienating (further) a group of people who can put their opinions on a hell of a lot of web pages. Think of it as free negative advertising.
The Suit Will Not End Well for MJNA
Project CBD's motion to strike was not completely successful but all that means is that MJNA and Phillip Koehnke get a chance to prove their case. But they've seeming dismissed all the other defendants and Project CBD has certain journalistic protections.
But here's the kicker, the Project CBD report came out on October 14th of last year, what did the stock price do around that time? Even if Project CBD can be proven to have acted inappropriately and found culpable for having done so, what damage did they do?
There are quite literately so many other things wrong with MJNA that it will be almost impossible for them to quantify in any tangible manner how their "brand" was harmed by Project CBD. But because the trial is slated for January of next year perhaps Koehnke can save on travel expenses by car pooling to the court house with Llamas and his defense team. Drat, it's probably not the same court house.
You Are Entirely Too Kind
but I thank you anyway.
They Would Most Likely Not Be
the ~same~ products but I could see something like rebranded ever so slightly reformulated knock offs or just simply new formulations that were in the product pipeline for kannaway shifted to ForeverGreen. Not long ago KWayNews announced "Hemp Coffee" but never said they were going to sell it, only implied. Wouldn't surprise me to see ForeverGreen announce a product line of the sort.
But my larger point is that MJNA spent 833 million shares to buy a MLM from General Hemp and now General Hemp has a new MLM partner. Kannaway no longer seems to have an exclusive MLM distribution agreement with the company that now owns it.
I Really Don't Know
What is MJNA's CEO's responsibility to it's share holders? Or put another way look at all the other scams Llamas,Titus and Sides have gotten away with, what's just another lawsuit compared to all that?
It May Well Be
but it makes the 833 million shares of MJNA stock paid to General Hemp in exchange for Kannaway a sunk cost on a non returning asset.
Further, there is something called "front end breakage" in some MLM companies. That's when the company buys product not from the suppliers but rather from a shell company set up by a few insiders who in turn buy the product from suppliers. That shell company exists only to mark up the price of the product that passes through from the supplier to the distributor.
General Hemp may well be doing something like that here. The partnership with ForeverGreen is with Gen Hemp, not MJNA. It will be HempMeds/MJNA products flowing through ForeverGreen's distributors but most likely only part of the profits will be realized by MJNA shareholders.
It's Confirmed
Skip to the three hour mark in the video at this link. General Hemp after having sold the corpse of Kannaway to MJNA shareholders (at a massive markup) have invested in another crappy MLM company. Does this mean that ForeverGreen (FVRG) will be selling HempMeds products? It would seem to be the case. What does this mean for MJNA's Kannaway division? Well that's MJNA's problem now isn't it?
This is What I'm Not Understanding
Kannaway..........................2014...............Q1/15
Total Ordinary Income.........52,608............1,178,384
Total COG.......................44,327..............373,354
Gross Profit.....................8,282..............805,031
What am I missing here? It is completely impossible that Kannaway has taken more money in year to date than they did in all of last year. I would be very surprised if in the last three months they took in more than they did in the last six weeks of last year.
Beyond the totals, compare Cost of Goods between them.
I know what I know and I don't know quarterly reports. Again, what am I missing here?
Compare the Q1/15 Total Income
with Kannaway's total income for all of 2014.
What's been happening in Kannaway year to date? 2014 went out with a bang, Robert Dean Jr who was once an industry legend joined Kannaway. The totally bogus Houlihan Capital "fairness opinion" (which they acknowledged and disclaimed that they did zero research for) mentioned two people joining Kannaway bringing with them a combined 85K new members. This was about the only "bright spot" in the report.
I do not know who the second person was and rather doubt they exist but Robert Dean was a complete flop. I first noticed that he was not being used as a "new face" of the company which was a red flag but the far larger red flag was that the first "satellite office" launched by Kannaway was in Dallas and not Dean's Atlanta. Fist off "satellite offices" make almost zero sense for MLM companies. The whole point is not to invest in brick and mortar sales locations and let your reps do the selling. Robert Dean's Atlanta office would have been his training center. Kannaway reps from around the country would fly to Atlanta to learn from the master how to recruit more reps (who in turn would fly to Atlanta). None of this ever came to pass and Robert Dean fell off of Kannaway's radar. Hes now pimping some other scheme which by my counting would make the new scheme either his 14th or 15th new scheme since he held any relevance.
Of the remaining "show ponies," the top level field reps who drive traffic, Kannaway lost them all. Seth Fraser left to start his own company taking Charles Vest with him. That's an over simplification, Seth Fraser took the rest of the visible field force with him, anyone you have seen on any Kannaway video except the CEO Jeff Rodgers and Ryan Vanderpool is no longer in Kannaway. Oh, sure you say, a few dozen people left and I'll say you're missing the point.
When you are a MLM affiliate with a sizable downline organization there are rules about what you can do when you change companies. Wars are fought and lawsuits filed. Rule of thumb, you are free to take your "front line" with you. These are the people you had a preexisting relationship with and who you brought into the company. Here's where things get dicey, those front line people all have their own front line, and so on. When a Seth Fraser or Billy Funk leaves they take a lot of people with them. MLM is a "relationship" business and those mid and low level reps have a stronger relationship with their upline apex than they do with the company and let's face it, if the company was making any money the apex upline wouldn't be leaving in the first place.
April 12th. That is the date of the last post in the official Kannaway corporate private facebook group. It's been three months since they posted a video to the official Kannaway YouTube channel. MJNA will continue to pay Jeff Rodgers and Ryan Vanderpool to pretend that Kannaway is alive until they think there isn't any risk of a shareholders class action suit over the 100 Million dollars worth of MJNA shares Llamas and Titus gave themselves for the corpse of Kannaway.
Sure, They Rent Office Space
But the Regus address is either a mail drop or MJNA is doing the equivalent of staying at a hotel instead of renting an apartment. If you're only in town a short time hotels make sense, if you'll be in town for a few months or more they're a waste of money. But when you've been sewed by previous landlords perhaps "pay as you go" accommodations are all that are available to you.
Also, GH Investments their investors relations firm which doesn't seem to exist outside of what services they provide to MJNA use the exact same mailbox. I guess that saves on rent.
Hmm, There Are Some Questions Here.
I would very much like it if Investazilla could provide independently verifiable proof of his claim but I can say that photo is on the Google Cache copy of the ghinvestmentadvisors.com website. First off, they are not "Investment Advisors," or at least that firm name is not registered with FINRA. They are registered to to business in California:
The address is a Regus rent an office so it's really more like a mail drop. And why is MJNA's new CEO their registered agent?
Also GHI's website was created on February 20th of this year and was registered through Domains By Proxy so as to hide who owns it. Also, the phone number given for GHI (858-264-6500), if these people are in the investor relations business, why is MJNA the only company they seem to have ever worked for?
I have seen no proof that GHI = the Mahoney brothers but GHI is a little more than half a year old, MJNA's CEO is their registered agent and GHI does not seem to have done any investor relations work for anyone other than MJNA (at least under their current name).
This looks like a less than arms length transaction of some sort. Speaking of which, I don't have time to type but the Q1/15 numbers given for Kannaway in MJNA's filing are complete bull sh!t.
Edit, sorry I doubted you Investazilla:
Press Release, note who is listed as contact for GHI. Now Goggle "Nick Massalas Carmel Advisors." We have a Mahoney sighting.
They Can't Keep their Lies Straight
In their completely farcical Fairness Opinion Kannaway/MJNA told Houlihan Capital that Kannaway had a net earnings of $420,720 in 2014 but today's annual report lists a net loss of $98,487. Good thing Titus and Llamas only paid themselves 833K shares of MJNA stock for that additional "income."
Ridiculous is the Very Best Word to Describe
this company and it's potential.
Seth Fraser Strikes Again
Charles joined Seth Fraser's steaming pile of an MLM, Pro Travel Plus:
To the best of my recollection Pro Travel Plus is the fourth company Seth Fraser has started and they all have one thing in common, absolutely zero focus on selling real products to real customers. The only way to make money is to pay a fee to join and then recruit other people to pay to join under you. If you think I'm describing a pyramid scheme you are correct.
Charles Vest didn't just work for Kannaway, he worked for HempMeds, his departure presumably from both is not a positive barometer. Both Vest and Fraser were high level field leaders and when they leave a MLM company they take as many of the people in their downlines as they can with them. I generally don't bother tracking mid level leaders but I've seen a few of them following Seth and Charles and a few others going their own ways (and bringing their people with them).
Looks like $100 Million in MJNA stock doesn't buy as much of a MLM company as you'd expect.
They Own 16% of Kannalife Science
and someone correct me if I'm wrong but that's about it. They do not produce CBD oil, they buy it from someone and sell it to someone else. They own a MLM company that has not closed it's doors yet for only one reason, Micheal Llamas and new CEO Stewart Titus are giving themselves about a billion shares of MJNA stock to sell that company to MJNA so they have to keep pissing money down the Kannaway sinkhole to make it look like they didn't just double the O/S number and give themselves an obscene number of shares for no real consideration.
There is a thin line between fraud and failure and Micheal Llamas is the Brian Boitano of figure skating on that thin ice.
What a ClusterFudge
Gaston can't get K, G and H to participate in their own defense or even to allow G & G to quietly withdraw from the case so they're asking the Judge to let them walk instead. Why does this remind be of the trouble Tripp Keber had with MJNA or the troubles Charlie Larson had with MJNA or, let's face it the very long line of people who got involved in some way or another with MJNA and went on to want Llamas et al the hell out of their lives.
8. Additionally, Gaston & Gaston, APLC has notified Defendants/Counterclaimants of its intent to seek relief as counsel in this action due to their lack of meaningful participation. Gaston & Gaston, APLC has advised
Defendants/Counterclaimants, all of whom are corporate entities, that they are unable to appear pro se in this matter pursuant to Southern District Local Civil Rule 83.3(j). Defendants/Counterclaimants have been repeatedly encouraged by
this office to seek new or additional counsel to represent them in this matter.
6. Additionally, Counsel has just been made aware that
Defendants/Counterclaimants and their agents have initiated discussions and sent correspondence to Plaintiff and Counsel for Plaintiff without notice to Gaston & Gaston, APLC and without allowing Gaston & Gaston, APLC to participate in such discussions. Gaston & Gaston, APLC did not advise
Defendants/Counterclaimants on such communications. Such communications without the knowledge of counsel undermine the attorney-client relationship.
11. A supplemental declaration detailing the disagreements between Gaston & Gaston, APLC and Defendants/Counterclaimants is available to be submitted to the Court under seal for in camera review if the Court requests additional evidentiary support.
That would be $80 Million in Shares
at a 25% discount so it's really closer to $100 million dollars worth of shares based on the average closing price for the ten trading days prior to when the deal went through. And all of this is to purchase a MLM company who hasn't been in the black since July of last year and who, at best is slowing the rate that they burn through cash.
But have no fear, even though Kannaway's most robust sprigs of growth are in fact tumble weeds Llamas and Titus will keep pissing money down that sink hole for no other reason, no other reason at all than to try and justify the near billion shares of MJNA they just gifted themselves with. Must be nice to be a soon to be convicted fraudster with your hand so far up the new CEO's ass that he's functionally a sock puppet.