Medical Marijuana Inc (MJNA)

[Alan Brochstein]

MJNA shareholders were forced to do a deal that is criminal. Management lied with its bought and paid for "valuation" done by Houlihan that was based solely on its impossible forecasts. Sadly, shareholders didn't get to even vote on this atrocious deal.

That valuation report shows Kannaway Revenue for Q3-14 was $1.98mm. The Q3-15 sales, as reported in MJNA's OTC Disclosure, was just $295K. Wow! That is a decline of 85%. The Houlihan folks took the MJNA forecast of 2015 sales of $25mm to create their valuation of "$120-243mm (using the Perry Coleman method of growth forecasting apparently). In the first three quarters of 2015, sales were much less than forecast, totaling only $2.2mm. If sales were similar in Q4, then Kannaway will be at only 10% of the forecasted 2015 sales of $25mm. The 2016 fluff served to Houlihan is $67mm!

HOW CAN KANNAWAY STILL BE VALUED AT $100MM??? The thieves and liars at MJNA will likely need to write down Kannaway