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Kannaway is a Sinking Ship
Kannaway President Bill Andreoli is no longer with the company. Andreoli jumped ship for a shady little MLM startup called TranzactCard:
https://evolve.mytzt.com/documents/TC-Andreoli-press-release-081523.pdf
Randy Schroeder, Kannaway's "Master Distributor" and self proclaimed "Top Earner" is working for TranzactCard too. The following video (with horrible sound) features Schroeder and MJNA's CEO and President Stuart Titus flogging TranzactCard:
SEC Update
From yesterday's 10-KT:
During the nine months ended December 31, 2021 we were not involved in any material legal proceedings, however, we have received a subpoena from the United States Securities and Exchange Commission (“SEC”) for the production of documents.
We have reason to believe that the focus of the SEC’s inquiry involves whether certain federal securities laws were violated in connection with, among other things, the offer and sale of our now discontinued Apex sale and leaseback program, the operation of our direct selling network now known as iGenius, and the offer and sale of cryptocurrency products.
In the subpoena, the SEC advised that the investigation does not mean that the SEC has concluded that we or anyone else has violated federal securities laws and or any other law.
We believe that we have complied at all times with the federal securities laws. However, we are aware of the evolving SEC commentary and rulemaking process relative to the characterization of cryptocurrency products under federal securities laws that is sweeping through a large number of businesses that operate within the cryptocurrency sector.
We intend to cooperate fully with the SEC’s investigation and will continue to work with outside counsel to review the matter.
SEC Subpoena
From the Q3 10Q:
ITEM 1.A – RISK FACTORS
We have received a subpoena from the SEC.
On November 9, 2021, we received a subpoena from the SEC for the production of documents. We have reason to believe that the focus of the SEC’s inquiry involves whether we have violated the federal securities laws in connection with, among other things, the offer and sale of cryptocurrency products and the operation of our subscription-based multi-level marketing business now known as iGenius. We intend to fully cooperate with the SEC in this matter. Responding to the subpoena will and may continue to entail cost and management’s attention. The existence of an SEC investigation and its potential outcome could have a material adverse effect on us and our business and operations.
iGenius Review
INVU's subsidiary iGenius is a multi level marketing company (think Amway with crypto). Worse still, it's not even a good one:
https://behindmlm.com/mlm-reviews/igenius-review-investview-continues-sec-fraud-with-endotech/
Montana State Auditor Filed C&D Against APQT Partner
Nui Social, a Multi Level Marketing company owned by Appliqate is under investigation by the Montana State Auditor, Commissioner of Securities and Insurance as of last September.
Allegations include the sale of unregistered securities in the State of Montana.
https://csimt.gov/wp-content/uploads/PLEADING-2019.9.19-Notice-of-Proposed-Agency-Action-Temporary-Cease-and-Desist-Order-and-Opportunity-for-Hearing.pdf
Let Me See if I get This Straight
INVU, as cash strapped as they are, needed to rebrand their failing MLM division (from wealth generators to Kuvera) and now they are buying another failed MLM, United Games.
We'll have to wait for disclosure but I doubt this was a cash transaction, I think INVU just fired up the old printing press and issued another large amount of common shares.
(Yet still further) Dilution.
Yea, They're Paying for an Infomercial
Or a series of them. It isn't exactly an achievement like they are trying to pretend. It will not get SCNP relisted and correct me if I'm wrong but the over the top, grotesquely dishonest PR's they were cranking out are a significant part of why the SEC booted them off the exchange to begin with.
So hiring a "we'll pump until we dump" PR firm is a good thing how exactly?
BS, it's Just Paid PR
There is no "contract" between Fox Business Network and Dib Funding, Dib is just paying for PR puff pieces from FMW Media who's New To The Street infomercial is played on Fox.
You can read New to the Street's Disclaimer here.
An excerpt:
NEVER INVEST IN ANY STOCKS ON THE SHOW OR WEBSITE UNLESS YOU CAN AFFORD TO LOSE YOUR ENTIRE INVESTMENT.
New To The Street (the “Program”) is a nationally-syndicated television program that profiles different micro-cap companies. The Program is owned, produced and syndicated nationally by F M W Media Works Corp. (“FMW Media”). FMW Media also maintains a website and Twitter platform with respect to the program at www.NewToTheStreet.com .
FMW Media is engaged in the business of advertising and profiling companies for compensation. FMW Media is compensated by the companies that are profiled in the Program in the form of shares of restricted common stock .They are typically issued to FMW Media or affiliated companies in advance of the broadcast of the Program that features the particular company. FMW Media regularly transfers the equity compensation it receives from companies that it features on the Program to its officers, directors, agents, representatives and other affiliates (the “Affiliates”).
Nope, Still Grey Market
As to their press release, they "will immediately begin integrating DIBCOIN into the Point of Sale (POS) systems in up to 500 brick and mortar stores."
Well, I'll issue a PR of my own: I will immediately begin training to supplant Tom Brady as starting quarterback of the New England Patriots for the 2017 season. Further, in addition to taking his job I'll lure his wife away from him as well. He can keep the kids, Gisele and I will have a brood of our own.
To be honest, my PR is only slightly more realistic than theirs is.
So, it's Settled
the only thing SCNP needs to prove to the SEC before trade can be resumed in the stock is that Dibcoin is in fact worth five billion dollars.
I'm sure Honson can explain it to them.
A Thought Just Hit Me
SCNP is closed to trading and arguably will never return to do so but that does not directly impact DibCoin.
Granted DibCoin is trading down almost 32% today on the thinest wisps of volume but does the SEC even have jurisdiction over an altcoin?
Remember that Adam Petty and Honson Luma agreed to accept their company salaries in DibCoin so they seem a little welded to the concept. What are the odds that the only forward going income for Duffy et al is their stupid little MLM company?
I assume Luma could go back to selling insurance and Petty could keep selling homeopathic alt medicine crap online, at least that's an income. But the trading halt either will kill DibCoin or turn it into some desperately clung to life preserver.
oy gevalt
The Stupid Lies Alone
that SCNP have been spreading about Dibcoin (5 billion in asset value, $235/share) are reason enough for the SEC to halt trading but there is a chance this runs a little deeper than that.
I regret that I don't have a proper link for this, I'm just copy/pasting from an email here but this is from James Scheltema's tax case:
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF FLORIDA
PENSACOLA DIVISION
UNITED STATES OF AMERICA,
v. CASE NO. 3:16-cr-00080-MCR
JAMES J. SCHELTEMA.
DEFENDANT’S MOTION TO CONTINUE SENTENCING
Now comes James J. Scheltema, by and through undersigned counsel, and hereby files this motion to continue the sentencing hearing currently scheduled on April 10, 2017 at 3:00 pm until a date in June of 2017.
As grounds for this motion, the Defendant states:
1. Neither party has previously requested a continuance of sentencing and this Court has never entered an order continuing sentencing in this case.
2. The Defendant pleaded guilty on January 19, 2017. His plea agreement with the Government contemplates the potential of providing substantial assistance.
3. Pursuant to this portion of the plea agreement, the Defendant is scheduled to be deposed on the morning of April 10, 2017 by lawyers from the Securities and Exchange Commission in a civil matter loosely related to the conduct at issue in the present case.
4. Undersigned counsel has consulted Assistant United States Attorney David Goldberg on this Motion. Mr. Goldberg represents that the United States has no objection to the requested continuance.
WHEREFORE, James J. Sheltema respectfully requests that this Court grant the present motion and continue the sentencing hearing to date in June of 2017.
CERTIFICATE OF SERVICE I hereby certify that on March 6, 2017, I electronically filed the foregoing with the Clerk of the Court by using the CM/ECF system.
Respectfully submitted,
By: /s/Sean M. Wagner
Sean M. Wagner
Florida Bar No. 14042
Wagner & Wagner, P.A.
Attorney for James J. Scheltema
1900 S. Harbor City Blvd.,
Suite 124 Melbourne, FL 32901
Wait till they Disclose The Asset Value
SCNP (and Dan Duffy) could well be playing shadow puppet theater with their altcoin. I can not prove that >50% of all Dibcoin transactions on the LiveCoin exchange are between "wallets" owned or controlled by SCNP specifically for the purpose of propping up the coin price. But guess what, no one can prove they aren't either and this sort of price manipulation is not only possible but it is common enough to render it perhaps other than unlikely.
Unless you have absolute faith that the man serving a life sentence on fraud and murder for hire charges and who also controls (though not in the strict legal sense of the term) the privately held company which owns 87+% of SCNP, would never do anything so dishonest.
Because if you buy that you may as well buy as many shares of SCNP as you can afford and while you're at it, cash in the kid's college fund to grab up some dibcoin. After all when that gravy train rolls in your kids might not need any education to secure their future and when you think about it, Daniel Duffy can use as many uninformed and uneducated investors as he can find.
It's been a winning formula for him so far (except for that little set back with the jury of his peers).
But back on point, Let's see how much SCNP pays in taxes on their five billion dollars in Dibcoin windfall. I have been and not without good reason, called a cynic but I honestly believe that SCNP will not find themselves in a position to pay any significant taxes on their Dibcoin holdings. I further believe they may well escape paying significant taxes on their Dibcoin holdings even without any sort of the "alternative tax ideology" Ernie Land might acquaint them with when he isn't running their MLM division.
Quite simply, there might not be enough of a real and declarable income increase from Dibcoin to offset SCNP's rather prodigious and seemingly perpetual financial losses.
The Reason for the Second Article
was SCNP's press release about the first article.
Peter Reilly knows Ernie Land, Mr. Land is to date the most prominent multi level marketing professional attached to the Dib Nation "Amway of altcoins" effort. I know of Ernie not only from his MLM connections but also because of his "sovereign citizen" type beliefs. Mr. Land used to sell tax protester information (the secret reasons you never need to pay taxes sort of stuff) even as his close friend "Dr." Kent Hovind spent almost a decade in jail on tax and related charges.
Just to square the circle Peter Reilly blogs for Forbes primarily on tax related issues which is how he became interested in Kent Hovind and Ernie Land.
Adam Petty grotesquely distorted Mr. Reilly's first article in his PR, hallucinating something to the effect that Forbes dot com called SCNP's use of Dibcoin as something in the order of "genius." No rational reader of Peter's article would conclude anything even remotely close to that.
Had Adam Petty issued a PR saying that Peter Reilly had said such and such Peter may well have let it slide, SCNP is a microscopic fish in a fairly distinct lack of a barrel after all. But because something he wrote caused Forbes dot com's name to be taken very much in vain Mr. Reilly had no choice but to issue a clarification.
Let's see how "homeopathic Band-Aid" entrepreneur Adam Petty spins this one.
I Take it you don't Get Irony
From the Forbes article:
Nonetheless, Dibcoins at a buck means Sunshine is worth $235 per share. And you can get it for $4 if you have a broker without a picky compliance department.
How to Artificially Inflate an Altcoin
I'm not saying anyone around here is going to do this, but if they wanted to this here is one way they could do it.
A coin "wallet" is a software application for holding and exchanging digital currency. You need one to transact or hold digital coins but there is nothing, nothing at all keeping you from owning more than one wallet, you can have as many as you like.
For this example we are going to assume someone has 50 such wallets and in 25 of them hold the same low value and most importantly, low trade volume altcoin, you know, our altcoin. In the other 25 we have either bitcoin of something else we can readily trade for coins.
Now we watch how our altcoin is trading on the exchange, if the price is going up we can sit back and do nothing but if the price isn't moving or worse yet, if the coin's price is falling we can spring into action.
We do this by making a bid to buy our own altcoin but at the price we want to be and we make that bid from one of the 25 wallets we have holding bitcoin and then because, and this is key, because this is a thinly traded altcoin we have more than enough time to fill that trade order directly from one of our 25 wallets holding our own altcoin. We neither gain nor lose money on the transaction save exchange fees so we are literally just shifting coins from one wallet we own to another wallet we own. The only thing we've accomplished is setting the last recorded trade to the price we wanted it to be and we can do this again and again and again.
And if anyone else on the exchange makes a bid at or above the price we want we can go ahead and let them buy some coins, we do after all have 5 billion of them to play with. The more the merrier.
We'd need to change off between the wallets we control to make it less obvious that one person is manipulating the price but that's why we have 50 wallets to start with and any half way competent programmer could write a bot to do this for us more or less automatically so there's no reason we couldn't control far more than 50 wallets if we needed to, or even if we simply wanted to.
Obviously this is far FAR easier to pull off with a low trade volume coin than it would be for something with real market volume like bitcoin but even bitcoin is too unregulated and susceptible to manipulation for the SEC to allow the Winklevoss twins to set up a bitcoin ETF.
So we all sorta have to take it on faith that the people behind any upstart altcoin aren't dishonestly manipulating their coin's price to their own benifit because it's pretty much impossible to prevent them from doing so if they ever wanted to.
Is Dan Duffy's 2017 Alt Coin Play
a better bet than his 2007 Iraqi Dinar play?
"With all the great news coming out of Iraq, the rate of the Dinar rising every day and people by the busloads returning daily back to their homes in Baghdad, it was an easy decision to increase our holdings in what the company believes to be the best investment in foreign currency today," stated Daniel Duffy, president of Sebastian River Holding's Inc. "People don't realize that prior to the war with Iraq the Dinar was $3.00+ per US Dollar. Today the country is almost debt free; Iraq is one of the leaders in oil, natural gas and holds a huge amount of gold in its country, and the rate is 822.37 per million, which is up from $784.93 when we first started
in March 2007."
The Company believes in the near future there will be a revalue of the Iraq Currency, it is the Company's opinion after doing its due diligence and public statements from Iraq's government officials, that the revalue could come in at between .82 and 1.00 per US Dollar. This would give Sebastian River Holdings a profit of between $192,000,000 and $235,000,000.
A Million Questions
But let's pair that down just a bit. First off, everybody knows Bitcoin but how many people know the other dozen or two alt coins that have any appreciable trade volume?
Does anyone have any idea how many thousands of alt coins which have crashed and burned to the ground taking their investors money with them?
What is Honson Luma's technical background? Would he know a blockchain from a jump rope? I read his white paper, it isn't encouraging and may in fact be a joke.
Did you know that former SCNP president James J. Scheltema had the sentencing on his tax fraud conviction continued until June? A rather interesting quote from the relevant court document:
3. Pursuant to this portion of the plea agreement, the Defendant is scheduled to be deposed on the morning of April 10, 2017 by lawyers from the Securities and Exchange Commission in a civil matter loosely related to the conduct at issue in the present case.
DibCoin, the Amway of altcoins
Behold their affiliate program:
dibaffiliate.com/founders-club
They haven't finished their website yet, no details on their compensation plan for example but make no mistake, folks are going to sell the DibCoin "opportunity" the same way they sell Amway or HerbaLife.
Small problem with that, there are HUNDREDS of MLM altcoins out there and the total number of them that has sustained any real world value has thus far been ZERO and I don't expect that to change.
Why? because bad MLM is entirely recruitment driven, when recruiting dries up so do recruiting commissions. As commissions fall so do member numbers. As members drop out they dump their alt coins so if the coin value is greater than zero it wont remain so for long.
DibCoin is a dead coin in waiting. Enjoy the ride while it lasts.
From the Link You Supplied:
As part of the transition, former Kannaway CEO, Jeff Rogers, will assume the role of COO.
Pretty Sure You're Wrong About
The company’s Nyloxin product is the first OTC pain reliever clinically proven to treat moderate to severe chronic pain.
Possible Trouble with CVSL?
Some of the top leadership in CVSL's subsidiary Agel resign over unpaid bonuses. The link below is from a MLM consultant with many connections in the industry. Unfortunately the link is one of facebook's new video links and it isn't on YouTube, I hope you don't need a facebook account to see it:
https://www.facebook.com/troydooly/videos/10206854184266938/
FVRG "Breaks Silence" On Lawsuit
Official Response.
I'm not an attorney so wont try to parse their arguments (but I'm glad they provide copies of the legal documents). The thing that's clear is that FVRG is attempting to go on the offensive. I am somewhat familiar with the people on the other end of this lawsuit (LaCore, Underwood et al) and do not have a very high opinion of them or some of their previous efforts (not that that has bearing here). But I will point out that Terry LaCore and his chief legal counsel Jennifer Grace once took on the 800 pound gorilla of the MLM world (Amway) and won.
The facts of the matter will determine the outcome here but it doesn't look like this will be a quick, inexpensive settle out of court type deal. And even if FVRG prevails I have doubts as to Pruvit's ability to pay much in the way of damages.
I'm almost Positive that They Don't
Kannaway seems to be recycling some of their old media (social and otherwise) presumably to kick start some sort, hell any sort of "buzz" about themselves. I give them a little credit for having a little sense of humor. But if they paid for a second months rent on the Dallas office they are more foolish than even I believe.
Dallas wasn't slated to be the first "Satellite Office," I'm pretty sure Atlanta was intended to come first. Atalanta is Robert Dean's home town and Mr. Dean was one of the people mentioned (on edit, referred to) in the Houlihan Capital fairness opinion who was expected to bring like eleventy billion affiliates with him but didn't do squat. Wes Bishop was the Dallas affiliate who was supposed to make the deal swing but he's no longer with Kannaway either.
The entire Satellite Office idea made no sense at all. This is MLM, you need a main office, a warehouse and a few wolves to maul the sheep. Brick and mortar sales locations are unnecessary overhead or just lame PR. But oh well, much like Titus' "pot is Schedule 2 in the Caribbean" lie it plays well to the people who don't think about it.
Thanks for the Clarification and Update DRT
All's quiet on the Kannaway front. They brought in a new VP to try and handle the relaunch but nothing is happening. They either haven't decided on a new social media strategy of the new strategy is not to have one. Near radio silence.
One MLM industry note to mention, the FTC came down hard on a MLM company named Vemma. This caught almost everyone by surprise, myself included because Vemma is pretty much what passes for legitimate MLM. The specific aspect of some of the complaints do however pertain to Kannaway.
Getting new affiliates to purchase a sizable starter kit, get them to go on "autoship" (recurring monthly product orders) as a way to qualify for commissions and then have that new affiliate go out and get other people to sign up and do the same.
That is a large part of what got Vemma hit by the FTC and it's a perfect description of how Kannaway works as well. Now Vemma was cranking $200 million/year in sales and Kannaway is pulling the thinnest fraction of that so I don't expect Kannaway will get shuttered but they can no longer pretend that they are operating legitimately. The only way to fix this problem is to be able to document actual customer purchases and the only way to do that is to drop prices to the point where they're competitive with similar CBD products. That will be very difficult to pull off and still pay MLM style sales commissions.
myopinion, Your 31 Days Off Starts Tomorrow
Assuming you intend to make good on your word.
I hope you enjoy your vacation as much as the rest of us will.
SHhhhhhhhhh
I bookmarked his post where he said he'd give us a 30 day vacation from his spam if it drops below .03.
Don't spook him.
Hard to Say
But judging solely but the average quality and accuracy of previous MJNA press releases I'd hazard to guess that lying their asses off or at best being deliberately misleading is not exactly out of character for them. Remember the contract they signed to sell themselves $25 million dollars worth of inventory last month when they pretended that they were expanding in Korea ? Yea, just more of the same old same old.
Sure Thing, Right Here
Link to the PR on MJNA's own site. Pic for the click impaired:
My Post Zeus was asking about:
There are some Caribbean islands that are US territories but most of the islands are not. A change is US law wouldn't effect the non US islands but more important than that, Titus is flat out lying about marijuana (medical or otherwise) being "Schedule 2." That would require a change in federal law and if such a change were made it would have been BIG news. Fact check me for yourself, try to find anything about US territories, the Caribbean and schedule 2 that isn't a MJNA press release or someone quoting from one.
Puerto Rico legalized medical marijuana (with no help from Kannaway just to remind us of a previous PR porky pie) and the US Virgin Islands have decriminalized possession of up to one ounce of pot. Yet in neither of those US Territories is marijuana a "schedule 2 substance."
And just to belabor a point, if you were say in the US Virgin Islands and had the choice of buying real weed or buying industrial hemp stalk oil, which would you chose? And which one does MJNA sell again?
Legalization is almost the biggest enemy MJNA has, falling a distant second to their own corporate leadership.
Something is Seriously Wrong with that PR
Link to MJNA's latest missive.
“It is interesting to note that the U.S. territories and Caribbean Islands have recently scheduled medical marijuana within the area as a Schedule 2 substance,” states Stuart W. Titus, PhD and Chief Executive Officer of Medical Marijuana, Inc.
You Do Realize That
every state that legalizes is yet another state where people can buy the real thing and will not have to settle for industrial hemp stalk, CBD only oil?
Patchwork legalization is not a good thing for MJNA and while entrepreneurs are getting legal pot licenses in multiple states MJNA is falling father and farther behind for when national legalization comes. There will be people producing legal weed in multiple states ready to step in and furnish the demand but none of those people will be MJNA. By that time the only thing MJNA will have of value is it's ticker symbol, one last cash out opportunity for Llamas and Titus.
In Soviet Russia
MJNA shills for you.
For those too young to take the reference.
Just to Make this 100% Clear
Because the PR did not address the issue but MJNA's Dixie Stix are not in fact date rape drugs. But the name obviously invites some confusion.
Lumaxa isn't Focused on Snake Oil Anymore
Yes, they still sell Nyloxin and Pet Paid Away but it isn't what they're focusing on. Here is their newest marketing push, their Empower 39 promotion. Sign people up to spend $39/month on one of their chewing gum products and go from there. They're launching a discount travel portal which is one of my pet peeves, travel and MLM is a historically awful mix. They are also getting into discount shopping debit cards. Yippie. But in that 31 minute video you have to wait until about the 23:50 mark for the one and only mention of Nyloxin.
I've been accepted as a member in their new leadership facebook group. Lumaxa president Steve Gewecke is a member as well and with both of us included the group has a total of 32 members. Lumaxa isn't exactly going like gang busters.
MJNA is Now Buying the Stuff They Resell
form someone else. This is almost as impressive as when HempMedsPX created HempMeds Korea and signed a contract to buy $15 million dollars worth of stuff from themselves.
TO THE MOON !!!!!
A Challenge for you Sir
Find a single news source, not a press release or blog post but a legitimate news article that mentions ANYTHING about Kannaway's role in Puerto Rico's medical marijuana initiative. Because if you, like myself are unable to find one then I just might be tempted to believe that Kannaway's "historic" role is a figment of their imagination.
Yep, No News and Same Old Same Old
I saw that video last night, Troy Nihart has been with Kannaway from quite some time but face time on videos isn't his strong suit. Troy Dooly is an industry consultant and one I generally do respect. Face time is in his wheel house and I'm sure it's part of why they paid him to fly out to the west coast.
The video was about 24 minutes of sales pitch and just about zero substance. This in an of it's self is not a negative in MLM circles. I would grade it far higher if they acknowledged that there were serious problems with the business model and mentioned some nuts and bolts about how they were going about trying to correct them but I'm a more brass tacks thinker than most MLMers.
MJNA investors should be hoping that the new "Uprising" video is more in the way of a teaser, a way for Kannaway to say "we ain't dead yet and are fixing to make something happen" but if that is the case the video was either far too long or the camera got shut off just before they got around to explaining how what they are planning to do now is in any way different than what they've been doing all along.
Anyone with 24 minutes of their life they'll never get back and is interested, the video is right here.
No, MJNA BagHolders are Screaming Buy
these lead balloon shares off of me. Please.,........!!!!!
Side track: Kannaway is gearing up to make some kind of noise sometime soon. I expect it to be more of the same sort of thing that put them where they are today but it might be amusing if I'm wrong about that. Time will tell.
I Guess There is So Much Good News
that they just couldn't write it all down by the reporting deadline.
It's a Fire Sale
plain and simple. Kannaway was never focused on retail sales, it was focused on making their affiliates buy product packages to qualify for bonuses and chain recruiting more affiliates to do the same. This guaranteed that almost all kannaway affiliates would be losing money month after month till they quit. So if new sign ups fell short of the rate of attrition the sales force (and sales) would contract. It's clear from the records that have been made public that Kannaway has been contracting since July or August of 2014.
Inventory at this point is pretty much a sunk cost. If they are renting the shelves that inventory is gathering dust on it's a sunk and still sinking cost. So selling it at a loss is not a stupid move, it's good business. One added point, 65% reduction in price is also a 65% reduction in sales commissions, not that there are any Kannaway reps left looking at this as an income opportunity.
A side note: Forever Green, the MLM company General Hemp announced so sort of partnership agreement with last May released their 10Q today . Unless I miss my guess the last part of Note 7 is talking about Gen Hemp:
On May 27, 2015, the Company entered into an Agreement with a third party to sell up to 2,500,000 shares of common stock. The third party was to purchase $1,000,000 of stock upon execution of the agreement and was to purchase an additional $2,000,000 of stock, conditioned upon the Company entering into a joint venture agreement with an affiliate of the third party by June 30, 2015. Pursuant to the agreement, 835,334 shares of stock were purchased by a non-related party at $1.20 per share for total cash proceeds of $1,000,000. The Company did not enter into a joint venture agreement as of June 30, 2015, or through the date of this filing and therefore has not issued any additional shares of common stock to the third party.