Replies to post #144013 on Medical Marijuana Inc (MJNA)

[Alan Brochstein]

Is this based on something you have heard?

Mjna and Canv in works for M&A

I am still trying to figure out CannaVest's value. One way we will learn is upon the completion of the independent appraisal that is being used to set CEO Mona's stock option exercise price as well as the conversion price on the convertible notes of Roen Ventures (Mona and presumably Llamas).

CannaVest is likely to bleed again this quarter (Q4) and surely bled in Q3 like Q2. They need to see MJNA sales pick up a lot and they need to find new customers. My guess is that Roen could kick in a bit more cash, so MJNA's share payments may be a little less than the minimum based on the $6 collar price, but MJNA will ultimately end up with a big minority position. CANV has plenty of room to issue shares for M&A, etc. and is primed to uplist relative to the challenges MJNA might face in that process.

If you assume just 6mm shares ultimately for MJNA, then the position is worth $220mm, or about $80mm MORE than the current price of all of MJNA. Even if you tax it, the current market price of about $36 (caveat: 26 bid offered at 40), means you get the rest of MJNA for free (gum, wellness services). Of course, I think that the CANV stock price is not reflective of reality. If you disagree, then MJNA is very inexpensive by that exercise.