DNA Brands Inc (DNAX)

[Ed the Trader]

"Problem is the gov't red tape then you would only be able to sell it in states, that allow recreational use and medical use, so the market is shrunk."

Even getting a marijuana based product into one large market, like Denver, would be a big deal.

There are many marijuana-based energy drinks already out there, but I've yet to hear of ANY marijuana product on the market that has clinical trial results to PROVE effectiveness. The drinks all tend to use the word "infused" which really just means they used marijuana like tea leaves to get some desired concentration of the targeted marijuana compounds. It sounds less than scientific, and I would think if one has a product where one wants to use clinical trial results as a marketing tool, one would want to stress the science and stay away from words with looser connotations, like "infused."

There are two separate markets for a marijuana-based product which has a clinical trial behind it to PROVE it's value.

One is the straight out medicine product which is only available by prescription. This is the obvious choice for a product that has been put through the rigors of a clinical trial, and prescription drugs can usually be priced higher than recreational drugs. With a clinical trial to back up its effectiveness, it may be possible than insurance plans would cover it's usage (hence the possibility of MUCH higher per unit pricing).

The other market is the recreational market. For this market, the price per unit would be lower, and the concentration of marijuana-based compounds would be lower as well. Where clinical trial results would still be valuable is to differentiate the DNA product from all of the others that market through anecdote, hand waiving, and smoke and mirrors rather than hard science.

We obviously do not even know for sure that the new product would be marijuana-based, let alone which of the two markets DNA management would target with its clinical trial (or if they would plan to choose between the two).