Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Stuart's response is appreciated, but IMO, wrong

Glad to see Stuart's response, but I think he's wrong for the following reason:

Since a shareholder vote to do a reverse split was never (properly) held, the reverse never occurred.

Therefore, it would not require a shareholder vote to return to 5B shares, because it was never legally reduced from 5B.

If MJNA is going to do anything, and create a situation where the share structure matches what they stated in the 1Q/13 quarterly filing, they would have to call two shareholder votes to:

1) Restore the 1:20 reverse of Aug, 2008 under the terms described in that filing. That would create a scenario where the company had 11M outstanding shares and 250M Authorized Shares

2) Approve an increase in the number of Authorized Shares from 250M to 950M, retroactive to whatever date the number of OS surpassed the 250M shares after the 1:20 reverse.

I don't know if they can do this retroactively, however.

I therefore think that legally (and logically,) they have 1.15B OS, and 5B AS.