Replies to post #118634 on Medical Marijuana Inc (MJNA)

[Alan Brochstein]

Thanks! Those CannaVEST idiots had me on that one - I could not figure out what "SGT" was. That was the thinnest SEC 10-Q I have ever read. Here is my current thinking on what might happen to MJNA with CannaVEST:

If CANV gets off to a slow start, the seeds are planted for it to be stolen. The stock craters. The debt-holder (Mona) ends up controlling the company.

Here is how that works: 8.9mm shares outstanding today - going to 42mm (7 initially + 35 for PhytoSPHERE). The credit line is $2mm. If the stock goes to to .05 (the price Mona invested in November), then there is $2.1mm market cap. MJNA would own 28mm, CannaBANK 7mm and the insiders (Mona) 7mm. Convert the 2mm debt into shares at .05 and 40mm shares goes to Mona (Roen). That's 82mm shares. Guess what: authorized share count is 190mm! MJNA ends up 31% of the company only though they started with 80%.

Bankruptcy could give Mona 100% - so far he has invested about 1.5mm (350K for the initial equity plus the outstanding amount owed to Roen) and the max would be less than 2.5mm.

Keep in mind that there is some evidence that 1/2 of Roen is Llamas...