Medical Marijuana Inc (MJNA)

[Alan Brochstein]

A ton of CBD! A ton is 2000 lbs. A pound has 454 grams. Let's say that this ton is actually concentrated oil at 20%. So, we are talking about CBD of 400 pounds or 181,600 grams. In milligrams, that is 182mm roughly. If we assume a price of a $0.20 per mg, that product would sell for $36mm. We laugh now as we look backwards, but this is very legitimate forward-looking possibility that is worth analyzing. CBD is taking off like wildfire in terms of public awareness, something that has been lacking. Is MJNA positioned to make that sale? I think so. Is anyone else? I haven't seen anyone yet.

The bull case on MJNA is that prices will fall (scale, cheaper hemp when domestic production is allowed) and that demand will rise for CBD-infused products. The CBD dosing for epilepsy is an astounding 400mg. I believe that's one-time daily. There was an article last night and another today that shows me that while CBD awareness is increasing, MJNA isn't always winning the p.r. battle. See the falsehoods in these two articles for yourself:

http://www.sltrib.com/sltrib/news/57118270-78/utah-marijuana-hemp-colorado.html.csp

http://www.digitaljournal.com/pr/1583010


MJNA has a lot of baggage that I hope that they can clean up soon. I am more focused these days on trying to assess what investors will do if the company announces that its products are being stocked by Whole Foods or the like. In my opinion, that day is coming.