Tommy,
Fascinating thoughts I must say. I agree with your earlier post and your conclusion about the one big pitfall that would lead to any joint venture turning into a "dilution solution" being the prohibitionist mentality reigning supreme.
And I frankly don't think that will happen, with Obama in office, the AMA shifting their perspective on the schedule 1 status of the drug as well as the overall changing viewpoints in Washington (IMO due to the government becoming younger over time and more liberal in their thinking).
I just heard the report today on the radio on my way to work about New Jersey getting ready to vote on medical marijuana in the legislature....with a slanting attitude towards successful approval of the initiative. They referred to people going out on the streets to get their drug (due to the absence of any legal means to obtain it) and having adverse outcomes that could have been avoided with the passing of this bill.
You can't deny that of any drug on the market, marijuana is one of the least harmful avaliable. I studied this drug extensively (both in school as well as personally), and I was always outraged that alcohol, morphine, vicodin, demerol among a host of other substances can be obtained legally (through prescription or in a store) whereas marijuana is still outlawed.
When one studies the physical impact of alcohol on the body versus the available studies involving marijuana, the evidence is so grossly disproportional to the way in which these two substances are treated by the governing bodies in this country it is absolutely absurd! Based on the evidence available, alcohol should be the illegal drug and weed found on any given 7-11's back isle!
The reason is the special interests who use money, power and antiquated mindsets to strongarm the powers that be into maintaining the status quo. But those days are dying fast IMO, and the AMA in particular for me tells the tale. Now that they have shifted their perspective, I believe it is only a matter of time before you will see a synthesized pill version of medical marijuana once the AMA opens up the experimental channels allowing the drug to be tested and analyzed in a way it has never been. And as you said, if our company is then bought out by the pharmaceuticals, it will be for a hefty pricetag I would venture to be a lot higher than $10 p/s. We could be sitting on a friggin goldmine!
Having said all that you know I have little experience in breaking down the financials of each company to determine the best maneuver as far as who will acquire whom, but just based on the market cap/SP alone, it is assumed that MJNA would acquire HESG as opposed to the other way around, and I would think the price paid by MJNA to purchase HESG would be based overall on what can be offered by HESG in terms of contributions. I know you asked me that very question and it is one I have been struggling with, as the outright information available does not seem clear on how MJNA will benefit.
Your comments certainly make sense, referencing Gaffney's failed experience in selling in an industry that would have similar distribution channels etc....and his overal medical bent could help out as well in terms of creating a dialogue between the feds, AMA, DEA and such ilk in greasing the wheels of progress in the direction they would want.
I noticed that statement by Gaffney regarding his father using medical marijuana before his passing and so you have the personal component in the mix. This is always helpful because he can give speeches with a truly heartfelt tone on how he has seen first hand the beneficial impact of medical marijuana, making this a personal quest to help others with their palliative care.
Let's face it, this needs to become a profit driven industry as opposed to a non profit industry (as most of the states [with the exception of I believe Montana] are structured) which is the way this thing has layed out thus far. Whatever company ends up at the helm of this fledgling industry will be looking to create the most profitability, and I think this will happen without difficulty once these facilities have been around for a few years.
The states need revenue now with this collosal recession we are in and I firmly believe that now is the perfect time for states to initially begin legalizing medical marijuana with the non profit platform, but then at some point, it could move into the profit sector on a large scale...once that happens, the company/ies at the forefront will become megas!
I think for now, the trick is looking out for the next PR's for clues as to how HESG will be a boon to MJNA. Also, has anyone done any DD into CBIS to see where they may impact this merger? I would imagine research into this company might offer additional clues as to which way the merger between HESG and MJNA might go.
Overall, I agree completely with you Tommy that there is a better chance for success with the market/legal conditions as such, but as you point out, the likelihood of a merger is the big question next to the one about if they were to join forces, how likely would their success be?
For now, based on there being no other known competitors looking to oversee this new market, I am willing to remain in HESG with the consideration of enhancing my position on any dips. I am currently holding a free shares position at the moment.
Stay in touch man, hope life is good!
Later,
Neo
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