Medical Marijuana Inc (MJNA)

[nopancakemix]

Managements Stumbles
Last week, I aired these concerns via email with management and IR with no response as of yet. I will follow up with a phone call next week.

1. Failed to provide clarity on the $4.5m stock grant from CANV acquisition of Phytosphere, listed as $4.5m under the revenue portion of the earnings report. Technically, CANV shares are NOT income as the profits are not realized until the shares are sold. CANV is illiquid, trading 300 shares per day, therefore it is impossible to sell $4.5 worth of CANV on the open market, meaning the revenues have not been booked. At this time, the $4.5m should likely be listed as assets, not income.

2. Failed to respond to outright allegations of fraud. The SA articles have labeled MMI, management, directors, lawyers, and auditors as frauds for their reporting of the items above. To quote Ashraf directly in one of his replies to another SA author, "Perry, your website attempting to pump the stock will not blind the world to the obvious fraud that MJNA is trying to pull." Those are NOT mixed words and are a direct accusation.

Management has failed to address these two key issues, completely eroding shareholder confidence. My initial impression of MJNA was that this company was wisely entering the cannabis industry by positioning itself as an umbrella company licensing out goods and services. At this point in time, I don't see MJNA as a fraud, but they are appearing incompetent as to running a publicly traded company.

If there is no significant, credible and actionable measures taken by MJNA, I will be dumping the 100,000 shares I purchased at .18 along with my original holdings with a basis of .03.