Replies to post #174219 on Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

I think MJNA still has to file ownership

While CANV has reported MJNA's ownership in some of its filings, MJNA is also required to file, probably a form SC 13, since nobody at MJNA is an officer at CANV.

CANV even noted MJNA's (as Phytosphere) lack of filing on page 17 of the FY2013 10-K (though I question the need for a Form 5):

Based on our review of the copies of such forms received by us, and to the best of our knowledge, all executive officers, directors and persons holding greater than 10% of our issued and outstanding stock have filed the required reports in a timely manner during fiscal 2013 with the exception of the late filing of one Form 3 by each of Michael Mona, III and PhytoSPHERE, the failure to file a Form 3 by Roen Ventures, LLC, and the failure to file a Form 5 by each of PhytoSPHERE, Mercia Holdings LLC, Mai Dun Limited LLC and Bart Mackay.

But as I wrote in the earlier post, I think this is less likely the reason for a lawsuit than a possible "gentleman's agreement" or contract between MJNA, Roen, Mackay, etc, about when and how to sell shares that are held by the various major shareholders, in order to not drive down the price too quickly.

Note that when Mackay filed a Form SC 13D in July, along with showing the holdings of his various companies, he indicated an intention to sell 300K shares of CANV. Theoretically, MJNA should have to do the same.


As to how I found the lawsuit, as mentioned in the original post, I was researching another company headquartered in the Las Vegas area, but didn't write that it was the CEO of a company that has contracted for consulting with Bruce Perlowin's latest company.

Since I knew that Michael Mona had been sued by Far West Ventures (per CannaVest's 10-K,) and CANV is also headquartered in Las Vegas, his name was a logical "test" for the Clark County Case lookup system. Eighteen cases popped up, with MJNA's name included in the last.

It was a complete surprise to me.

[GDorn]

Find Myself Pretty Much Agreeing with Doc

There just isn't enough info here to begin to speculate. The fact that Roen is the original moving party would seem to be significant but absent either the documents or other information it's hard to say of what.

From the docket report MJNA was served with the initial complaint on June 25th. Their still to be filed Q2 report covers up to June 30th. Would they be obliged to disclose this contingency whenever they do get around filing?

I noticed that Cannavest has their PlusCBDOil website up and running. For the moment at least it looks more B2B than consumer related, you can buy CBD oil by the kilogram. That isn't going to replace HempMeds sales anytime soon. I haven't really been looking, perhaps they are working on a separate retail platform.

But it's starting to look like the sale of CANV products that Hempmeds was (is) providing just might be the only value MJNA provides to CANV. Between the contract termination and now the lawsuits which do not include Cannavest but only in a narrow legal sense but do involve almost all of CANV's majority share holders, MJNA might be CANV's least favored customer.

I wonder if it will be easier for CANV to replace MJNA as a customer than it will be for MJNA to replace CANV as a supplier.