Replies to post #88876 on Medical Marijuana Inc (MJNA)

[Penny Stock Rookie]

I believe the Phytosphere/Cannavest deal should be viewed more like a spinoff instead of a sale. MJNA is going to have approximately 80% ownership and the new company will be publicly traded.

The stock is rising significantly, but I do not expect the remaining balance to be paid in cash. Even with the higher current share price, there is not enough volume to turn those shares into cash. Ultimately, if the float remains constant, the value of the Phytosphere deal adds enormous value to MJNA.

I also believe that this is a strategic move on the part of MJNA to keep them as a holding company that is not involved in operations (Much like Buffet's Berkshire). The benefit of having a legal layer between them and a company operating in a field of yet to be determined laws, is a good idea.

Time will tell.

MJNA