Dilution hasnt finished thus they dont have the funds yet to close on the deals, it will only move once they announce the payments are done, after that you will see significant jump in pps JMO
Per Note 5 of the 10-Q The Company paid a total of $20,000 cash pursuant to the acquisition of Suzie Q’s. The Company did not take over the lease on the location. The equipment and furniture had an approximate historical cost of $7,760 and a net book value of $0 as of the date of the Agreement. The Company recorded the excess consideration paid of $20,000 as goodwill.
Per Note 13 of 10-Q
Suzie Q - Jessica Vance On July 22, 2014, the Company executed a consulting agreement with Jessica Vance whereby the Company will pay Ms. Vance a signing bonus of $80,000 within 30 days of the executed consulting agreement as well as a monthly consulting fee of $3,000. The Company will also issue Ms. Vance 25,000,000 restricted common shares. Ms. Vance will provide operational support services to the Company with respect to the operations of Suzie Q’s NPO. As of September 30, 2014, the Company has not yet paid the $80,000 signing bonus.
Per Note 13 of 10-Q
On February 23, 2014, the Company entered into a Joint Venture Agreement with CanMed Ventures, Inc., a British Columbia company, to build and operate a 30,000 square foot cultivation facility for the production of medical marijuana, whereby the Company will own 100% of the building, land and equipment and has granted CanMED a 10-year management contract for the operation of the Joint Venture.
As of September 30, 2014, the Company has not made any payments or advanced any assets pursuant to the joint venture agreement with CanMEd.
Per CanMed Q. - Legal Status of Marijuana Industry in Canada Recently, there was a Federal Court action which was commenced by 2 licensed medical marijuana patients. They won an injunction to block the new regulations from ending their right to grow marijuana or to have a designated grower. Health Canada is preparing an appeal of the injunction to have it set aside. Or the issue will go to trial within an estimated 4 to 5 months. This led to a temporary halt on growers like our proposed deal with Health Canada, The injunction did not prevent the introduction of the new regulations on April 1 st . Now there are 12 to 14 “Licensed Producers” (LP) in Canada supplying medical marijuana to the market. There are some 350 LP applications being processed by Health Canada at this time. So for now we have in Canada both the old regulations and the new regulations in effect.
Legal experts have speculated that there is a 90% likelihood of the injunction being overturned. The problem with the old regulations is that people are allowed to grow in their homes or hire someone to grow in their homes without adequate fire and security measures. Most “growers” are also sources for the illegal market. So the legal right issue is more about affordability than about the right to grow and Health Canada has the legal authority to regulate this market.
All current LP are impacted by the injunction. Instead of having a 40,000 customer pool to themselves, they must compete against the “old” system until the court decision is made. These circumstances give our Joint Venture the opportunity to capture market share that would have gone elsewhere but for the injunction. In addition, these circumstances require a re-evaluation of market strategy and tactics as follows: · Configure CanMED’s operations to grow and sell marijuana under both the old and the new regulations with a strong focus upon customer acquisition. · Look to acquire suitable land and prepare to file Health Canada license application or make agreement with company that has already filed and is well advanced in the process. · Make agreements with existing growers who operate under the old regulations to acquire their customers. This would bring revenues within 60 to 90 days.
Now comes the massive, and we mean really massive, dilution that shareholders had to suffer through. On November 18, 2013 the reported number of outstanding shares was around 1 billion. After just three months there were 4.8 billion shares out of the 5 billion authorized and that is certainly not the end of the dilution. Initially the management of the company planned to increase the authorized shares to 25 billion according to the form 14c they filed on February 18. Just two days later they changed their mind and settled on an increase of 15 billion authorized shares.
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