Friday, May 29, 2015 5:04:10 PM
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.
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