Replies to Post #114933 onMedical Marijuana Inc (MJNA)

Replies to #114933 on Medical Marijuana Inc (MJNA)

05/11/13 1:15 AM

#114934 RE: iamablackbeltman #114933

With the black surrounding the text it is a little more difficult to read, but besides that no complaints here, it is article worthy. "MJNA Strategy Revealed" or something. I wonder if SA Will post it If I wrote.

Alan Brochstein

05/11/13 1:50 AM

#114940 RE: iamablackbeltman #114933

Totally Confusing Structure!

Is is just me, or is this the right way to set up a company? My read is that complexity like this will NEVER work for institutional investors. I don't mean this as an insult, but consider that it took 6 versions to get the chart to where it is, and it's still not right. Further, all these experts on MJNA who have invested their money in the stock and have presumably done DD have unclear ideas about what they actually own. It's bogus that it's because of the industry. They don't touch THC!

I was ripped for my last article. Some said I was stating the obvious, others said what I was stating is wrong. I am very clear to say that the company contributes to the confusion, but they don't explicitly lie. If you read the filings and certainly the 4/30 press release, it's clear that the company doesn't get any benefit now from THC. I spent the past four hours reviewing some additional press releases (man they put out a lot!) and listening to all of the interviews done on SmallCapVoice (Stuart Smith), with Caligiuri, Llamas and Keber (and one of the three guys from Can-Chew). Sides hasn't hosted one of these all year, which must be disappointing to those who found these updates informative and helpful to understanding the story better.

I posted an instablog that goes into detail about some more negative things I found. This doesn't even pay me a penny - it's a SA-hosted site. I felt that these issues didn't add to the story, so I am not writing an article that will get published on SA. I was hoping that CannaVEST would file on time, but Det_Robert_Thorne was right in his prediction - they are late. I also want to say that the company apparently doesn't want to talk to me despite my offer to do so.

Before I highlight the negative issues I uncovered, I will say that I can see why people got excited about the story listening to all of their big plans, though they don't do what they say they will do despite the goal of Llamas to set realistic expectations. If you take the time to read what they have written or listen to what they have said, it has been pretty much delays and disappointments. I think that people are so excited about the potential, perhaps rightly so, that they have given these guys basically a free pass. I am glad that I and others have shined the light on these transparency issues. The public deserves to be treated fairly.

The first point in my instablog is that in early December, Ted Caligiuri blatantly misrepresented the relationship between MJNA and Dixie Elixirs, calling it a "subsidiary". Wrong. The second point was that I now finally understand the massive dilution and escalation in authorized shares last year. Caligiuri explained it as being related to the Lotus financing (for just $2mm). It doesn't precisely add up (and this is extremely scary in my opinion). My conclusion is that the company just handed shares to HDDC. Unfortunately, they do a VERY poor job of explaining share issuance - it's obscene. But, here's the killer. In September, Llamas said that the share-count authorization was only 920mm temporarily and that it would come back down in a few weeks to 750mm and stay there for the foreseeable future. It was 950mm at year-end. By the way, Caligiuri had been involved with CannaBANK for years - he should have known, as a director, what he was saying. I still have no clue why the company never announced his departure. Their minimal disclosures didn't even explain it in their filing in February or April. They don't explain the problems - the deals that fail to close or the ones that they close and don't work out. Complexity, lack of transparency, massive dilution, management turnover, director turnover (without explanation. The worst perhaps has been the delays over the promised uplisting. I don't see how they can get their numbers audited. Medbox just cut their historical numbers as part of their process to get audited. So, uplisting isn't going to happen most likely. Sorry to be a "debbie downer", but no one looked at these important issues and management treated shareholders wrong. Maybe it improves, maybe the company comes clean. If you believe only 1/4 of what they say, the opportunity seems very great, but only with clarity on federal regulations.

Update: I was asked this by another poster:

You mentioned that my chart is not right. Can you tell me what to change to make it factual?

It's really late, so I hope that I am correct, but I believe that the relationship between Red Dice and CannaVEST is incorrect. MJNA has the investment directly. I apologize if this isn't correct, but I assure you that there will be a version 7, which is due to the complexity.