Medical Marijuana Inc (MJNA)

[Alan Brochstein]

MJNA/Dixie???

I have long been predicting that this relationship will end and stand by it. The writing was clearly on the wall when MJNA set up HempMedsPX and went into direct competition, selling CannaVest products. Of course, this followed the resignation from the MJNA Board by Keber in early March (not announced until late April). It became even more clear when CannaVest filed suit against Dixie (and RDH, which is 60% owned by MJNA).

There are two sides to every story, and Tripp has been awfully quiet about the situation. MJNA has said that this will all be resolved shortly. Again, I think it ends with MJNA and Dixie going separate ways.

I have no idea what impact this will have on the price of MJNA. While I think it's smart to break it up, my guess is that many shareholders may disagree with me. Surely it was Dixie that sucked many of the trapped longs, a lot of whom paid more than $0.25 per share earlier this year. One wonders if they might just dump shares when they realize that Dixie is gone.