Replies to post #185925 on Medical Marijuana Inc (MJNA)

[GDorn]

It's a Fire Sale

plain and simple. Kannaway was never focused on retail sales, it was focused on making their affiliates buy product packages to qualify for bonuses and chain recruiting more affiliates to do the same. This guaranteed that almost all kannaway affiliates would be losing money month after month till they quit. So if new sign ups fell short of the rate of attrition the sales force (and sales) would contract. It's clear from the records that have been made public that Kannaway has been contracting since July or August of 2014.

Inventory at this point is pretty much a sunk cost. If they are renting the shelves that inventory is gathering dust on it's a sunk and still sinking cost. So selling it at a loss is not a stupid move, it's good business. One added point, 65% reduction in price is also a 65% reduction in sales commissions, not that there are any Kannaway reps left looking at this as an income opportunity.

A side note: Forever Green, the MLM company General Hemp announced so sort of partnership agreement with last May released their 10Q today . Unless I miss my guess the last part of Note 7 is talking about Gen Hemp:

On May 27, 2015, the Company entered into an Agreement with a third party to sell up to 2,500,000 shares of common stock. The third party was to purchase $1,000,000 of stock upon execution of the agreement and was to purchase an additional $2,000,000 of stock, conditioned upon the Company entering into a joint venture agreement with an affiliate of the third party by June 30, 2015. Pursuant to the agreement, 835,334 shares of stock were purchased by a non-related party at $1.20 per share for total cash proceeds of $1,000,000. The Company did not enter into a joint venture agreement as of June 30, 2015, or through the date of this filing and therefore has not issued any additional shares of common stock to the third party.

So as of today Gen Hemp has not inked a deal to sell HempMeds products to FVRG. But Billy Funk, the last remaining Kannaway "stage pony" still took his downline from Kannaway to Forever Green. Pretty much a lose-lose proposition for MJNA share holders.