Medical Marijuana Inc (MJNA)

[GDorn]

Possible Motive for the Sale of Kannaway?

Last week the court ruled on Kannaway/General Hemp/HDDC's motion to dismiss. It was denied. Kannway et al now have till the 20th of this month to file a response to Cannavest's complaint. We can also expect a ruling on Cannavest's request for a preliminary injunction sometime soon.

As things stood Kannaway had been owned by General Hemp and HDDC and any potential fines and penalties that may be imposed in this suit would have been the responsibility of those two entities. HDDC is basically Micheal Llamas and General Hemp is pretty much 50% Micheal Llamas. MJNA however is only about 32% HDDC so if Kannaway is sold to MJNA before the verdict comes down Micheal Llamas effectively off loads 60+% of any fines and penalties onto MJNA's shareholders (other than him).

Cannavest is claiming no less than $500,000 in direct damages so far and in an ongoing basis. they also ask for penalties, fees and costs. And all of that is in addition to what Kannaway/G.H. and HDDC's legal defense is costing them. Before this is all said and done we very well can be talking 7 figures here. And thanks to the largess of MJNA's shareholders Micheal Llamas might only be on the hook for less than a third of that.