Medical Marijuana Inc (MJNA)

[deafelephant]

According to MJNA's former director and business partner who filed a lawsuit against MJNA in San Diego District Court:

"44. Upon information and belief, MJNA, Michelle Sides and/or Michael Llamas
personally, and/or through his intermediaries, including Michelle Sides, have (1) actively
disregarded MJNA's corporate structure; (2) failed to adhere to corporate formalities
required by law such as holding and documenting corporate board of director meetings and
votes as so required, which includes MJNA's failure to obtain board of director approval for
the sale of its majority owned subsidiary, PhytoSPHERE Systems, LLC's assets to
CannaVest Corp.; (3) published false and misleading financial statements to the public; (4)
published false and misleading disclosure documents to the public; (5) and engaged in a
pattern of behavior intended to mislead and defraud its investors, affiliates, subsidiaries, and
business partners, including Red Dice and Dixie.

45. The actions of MJNA, Michelle Sides and/or Michael Llamas, personally
and/or through his intermediaries, constitute a violation of § 11.2(a)(ii) of the Operating
Agreement because they amount to fraud and/or acts of moral turpitude that have damaged
and will continue to damage in the future or adversely affect Red Dice and its operations."