Medical Marijuana Inc (MJNA)

[GDorn]

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.