Medical Marijuana Inc (MJNA)

[davidjr78]

CannaVest Deal is Brilliant

Source from Yahoo boards

"I have poured through all of the recent announcements and Cannavest’s filings. Forget about what Cannavest has been in the past and think about what MJNA just did. MJNA sold “excess inventory” of hemp oil to CannaVest for what will be $35 million in shares. Why is that number important? Prior to the deal, there were 7 million shares of CannaVest outstanding with a market price of $5. If MJNA receive $35 million in shares prices at $5, then MJNA will hold 7 miilion shares of Cannavest or 50% of the company. 97.45% of the rest of Cannavest shares are owned by private equity firms, so they will own 48.7% of CannaVest. This makes MJNA the majority shareholder.
Why is this important? Regardless of what CannaVest was in the past (the previous owner was completed moved out of the company) they meet NASDAQ listing requirements that MJNA cannot. The share price has been over $4 for the required time and they are audited by Turner, Stone who is PCAOB-registered. With MJNA having the required revenues (doesn’t matter if it is cash or revenue in stock), the two companies meet all requirements for full NASDAQ listing.
As an aside, the statement says that the “excess inventory” that CannaVest were sold to MJNA subsidiaries (i.e., Can Chew and Dixie) at a reduced cost, which may have been $0. That means the hemp oil moved from PhytoSphere to Can Chew and Dixie at no cost and MJNA picked up 50% of a company that meets NASDAQ listing requirements."

This is interesting. Anyone else here have any thought on this?