Medical Marijuana Inc. Announces Third Quarter 2013 Shareholders Report --
Update & Supplemental Information
Supplemental information & updated information to PR dated 11/21/13
are bolded and underlined.
Company posts significant increase in revenue; adds new products and
international shipping; represents two "highest cannabidiol (CBD)" awards for
hemp oil; retains celebrity spokesperson; begins philanthropic efforts for
seizure-related disorder research.
SAN DIEGO, Nov. 26, 2013 (GLOBE NEWSWIRE) -- Medical Marijuana, Inc.
(OTC:MJNA), a leading cannabis and industrial hemp industry innovator, today
announced the release of its quarterly financial and shareholders report (Post
11/15/2013 - OTC Markets). The Company earned a net income of approximately
$7.9 million on gross income of approximately $10.4 million, derived from
sales and the quarterly PhytoSPHERE payment, for the quarter ending September
30, 2013. HempMedsPX— a corporate portfolio company of Medical Marijuana Inc.
and the exclusivemaster distributor and contracted marketing company for
CannaVest Corp. and Medical Marijuana Inc.— acquired the marketing contracts
for the highly anticipated Cibdex, Cibaderm, and HempVĀP product lines, adding
additional revenue potential for MJNA. In addition, the Company retained
Cheryl Shuman as a spokesperson; exhibited at trade shows nationwide;
initiated philanthropic efforts directed towards seizure-related disorder
research; and submitted/represented two award-winning hemp-based cannabidiol
(CBD) products, including the 2013 High Times Medical Cannabis Cup "high CBD"
concentrate winner. Below are the Company's third quarter 2013 operating and
Operating highlights for the third quarter are as follows:
*HempMedsPX posted revenues of $248,859 in Q3, up from $6,448 in Q2.
*Signed four additional products to represent: Real Scientific Hemp Oil
(RSHO), Cibdex, Cibaderm, and HempVĀP.
*Hired and integrated new staff, including: sales manager, product
developers, customer service, IP attorneys and in-house counsel, graphic
design, marketing/PR, community outreach, social media, web developers,
logistics, an expanded call center and other support staff.
*As of September, 30 2013, the Company has forty-six (46) team
members—including part-time or contracted—within our corporate structure
*Exhibited products and/or sponsored a variety of trade shows including:
Sept. 7-8: High Times Medical Cannabis Cup, Seattle
Sept. 8-9: NYC Wholesale Expo, New York
Sept. 22-23: Intl. Esthetics, Cosmetics & Spa Conference, Ft. Lauderdale
Sept. 26-28: Natural Products Expo East, Baltimore
Sept. 27-29: Michigan Medical Marijuana Conference, Traverse City
Sept. 30-Oct 2: Miami Wholesale Expo 2013
Oct. 5-6: The Ultimate Women's Expo, San Francisco
Oct. 19-20: The Ultimate Women's Expo, Phoenix
Oct. 21-23: 2013 ISPA Conference & Expo,Las Vegas
Oct. 26-27: The Ultimate Women's Expo, Los Angeles
Nov. 6-8: 2^nd Annual National Marijuana Business Conference & Expo, Seattle
Nov. 9-10: Green Festival, San Francisco
Nov. 14-15: Supply Side West, Las Vegas
*Retained Cheryl Shuman, cannabis industry celebrity, as company
spokesperson to enhance national mainstream media coverage.
*Began preliminary international shipping to all countries that permit hemp
*Established our first wholesale distribution accounts.
*Implementing re-launches of portfolio product websites and HempMedsPX.com.
*Represented the winners of the world-renowned 2013 High Times Cannabis Cup
and 2013 Michigan Medical Marijuana Conference "Green Cup" contests for
Highest (hemp) CBD Concentrate.
*Began implementing an integrated social media/PR/news media campaign that
includes local media and national/international media exposure.
*In addition to working with MJNA and CannaVest, HempMedsPX anticipates
offering mainstream marketing, sales, customer service, and logistics for
the cannabis industry in the very near future.
*Sales of CanChew gum for Q3 were $33,887, up from $9,801 in Q2.
*MedChewRX, a cannabis-based THC/CBD pharmaceutical drug, is still
scheduled to move forward with its clinical trials in 2014. Clinical
trials are typically a two-to-five-year process, and the Company
appreciates shareholders' understanding of the timeframe involved to bring
a pharmaceutical product to market.
*PhytoSPHERE received its $10 million quarterly payment from CannaVest.
$200,000 of which was paid in cash, and the balance ($9,800,000) was paid
in stock as per its contractual obligations. Hemp Deposit Distribution
Corp. (HDDC) has deferred their 20% payment to support expansion to
enhance their investment.
Red Dice Holdings
*Red Dice Holdings reported total income for Q3 of $321,671, up from
$156,378 in Q2.
*The Company continues to evaluate its existing partnership with RDH, and
is currently in negotiations to resolve any underlying issues. The Company
anticipates a resolution in Q4.
Wellness Managed Services
*The Company has decided to put this focus on hold to concentrate its
efforts on product launches and new product acquisitions with existing
subsidiaries in the best interest of the Company. The Sales and Marketing
Director hired for WMS has been transitioned to HempMedsPX to further
consolidate and focus MJNA's overall marketing efforts.
*The Company continues to re-evaluate and streamline its resources, and
anticipates a more optimal outcome with a single brand focus.
A statement from MJNA.
Medical Marijuana, Inc. had operating expenses of approximately $545k for the
quarter, exceeding expectations by approximately $250k due mostly to the
office move, hiring of new personnel, new product launches, anticipated
business purchases, distribution contracts, and additional legal counsel. Our
direct cost of goods, however, was $145k, which was significantly less than
The Company continues to be optimistic about their future as an industry
leader, changing minds and public opinion about industrial hemp and our
innovative hemp-based CBD products. The expansion of the Company's own
operations through HempMedsPX has meant the establishment of a strong business
model that is successfully marketing and selling our portfolio of products
direct to consumers, to manufacturers, and to a variety of industries outside
of the medical cannabis world. The hard work of our HempMedsPX customer
service team has paid off in many ways, most notably through the signing of
our first major wholesale accounts for CannaVest and MJNA. Our team has worked
around the clock to establish these relationships and has expended
considerable resources on educating not only the public, but also mainstream
manufacturers about the benefits of having the only legal CBD in their
products. This was achieved largely in part to an improved web presence and
exposition at trade shows for a variety of industries. The Company feels that
continuing this development of in-house sales, comprehensive marketing
strategies, media and celebrity outreach, and improved investor relations
represents a continued positive change in our business strategy.
The addition of a new board member, Michael Julian—President/CEO of NBI
Professional Investigative Services as well as MPS Security—represents a
deliberate step forward for the Company. Mr. Julian's entrepreneurial
background and executive-level experience are tremendous assets for the
Company, especially as they pertain to managing transformative businesses. We
wish our former board members well in their agricultural businesses. The
Company is aggressively seeking board members who are business executives with
successful track records in the corporate world to help facilitate future
growth. Mr. Julian will provide assistance not only in business-related
matters, but will also lend expertise in locating and vetting future
executives and board members, evaluating existing partnerships, as well as
future opportunities to ensure that we locate the most qualified individuals
and partnerships that are viable and in line with the Company objectives.
The Company's expansion has included the addition of industry experts and,
tellingly, has attracted talent from outside the cannabis industry—including
team members from Fortune 500 corporations. We feel this is a sign not only of
our own incredible growth, but also of the surge in overall interest in and
acceptance of the cannabis industry in the United States.
Regarding the CannaVest "offering": The money being raised from the sale of
the restricted common stock will enable CannaVest to increase harvests and
production, which will lower overall cost of hemp CBD. This in turn will
enable MJNA and our subsidiaries to have higher margins and to lower the
overall cost to the consumer, thereby increasing availability and
affordability of hemp CBD. The Company supports this action and anticipates
stable, long-term growth from this offering. As of this writing, CannaVest
(OTC:CANV) stock remains at $25.50/share.
Complete transparency continues to be an aspiration for the Company, and we
feel we are moving in the right direction. While we will always carefully
guard proprietary information, and will continue to innovate in-house, we want
to shed inaccurate perceptions simply by making the best hemp products in the
world. With increased social media presence, enhanced mainstream media
coverage, and our expositions at trade shows outside of the cannabis industry,
we hope to make an impression on the public and manufacturers alike. This is
also part of a larger goal of bringing industrial hemp back into the
mainstream; to that end, we will be partnering with health, wellness, and
business experts to help inform and educate the public about the incredible
potential of cannabidiol (CBD). We continue to expand our IP and trademark
portfolio in anticipation of the increasing demand for innovative CBD and hemp
Another part of our overall goal to become more transparent is our charitable
outreach program, which began in earnest in Q3, 2013. Our sponsorship of the
Run4Harper event benefitting CDKL5 (a severe childhood seizure disorder)
research is our first significant venture into charitable giving. Next steps
include local (San Diego) outreach and continued support of seizure disorder
awareness and research organizations.
In a few short months, we have completed a transition from being a holding
company to being a profitable direct marketing and sales company, developing
and managing a growing portfolio of cannabis products and related services.
While there will always be rough patches for any transformative company, we
continue to devote our resources to being vigilant and responsive to changing
trends, laws, and emerging opportunities so that we are in compliance with
federal and state laws and/or regulations.
We are excited about the changing landscape of the cannabis industry. For the
first time in history, a majority of Americans wants to legalize marijuana
(58% of all polled). While this is incredible news, we realize there is a long
way to go. Our intent is to continue to offer cutting edge, federally-legal
industrial hemp and hemp-based CBD products to the public, and to capitalize
on the change in attitudes towards the use of cannabis for recreational and
Our outlook for Q4 is even more optimistic. None of this would have been
possible without the continued support of our shareholders. We have made the
full transition from investing in cannabis businesses to becoming an operating
cannabis business ourselves. We are confident that we will continue to evolve
and develop our brands while being ahead of the industry curve, as we have
with CBD-rich hemp oil. Shareholders and the general public are invited to
visit the MJNA Facebook page and the HempMedsPX Facebook page for updates and
information on company activities as they happen.
It has been brought to our attention that a former Dixie Botanicals employee
has issued negative and derogatory statements concerning the sourcing, purity,
and content of our cannabidiol (CBD)-rich hemp oil. We are extremely
disappointed that some publications would choose to publish hearsay and
serious allegations without any evidence of their veracity, especially as
these accusations came about due to a contractual dispute between Dixie
Botanicals and this individual.
In light of the untrue statements made by the former Dixie employee, the
Company would like to take the opportunity to assure shareholders and the
general public that the hemp and CBD-rich hemp oil products the Company offers
are rigorously tested for purity and quality. The Company's vendor, CannaVest
Corp., monitors our hemp from seed to sale. The CBD-rich hemp oil is always
tested for cannabinoid content and other natural plant constituents as well to
ensure product consistency and quality. The Company and its vendor each
conduct microbiological screening (total aerobic count, coliforms, E.coli,
yeast and mold count, salmonella) and heavy metal screening (lead, mercury,
arsenic, etc.) on every batch of CBD-rich hemp oil. We do not sell products
that contain dangerous solvents.
Additionally, the allegation made about the sourcing of our oil is blatantly
false. While we don't provide full disclosure about the location of our
harvests, the oil in our products has never been sourced from China. The
CBD-rich hemp oil incorporated into our products is non-GMO and grown on
generational farms without use of chemical fertilizers, pesticides, fungicides
or herbicides. All seeds are lab certified, and the hemp cultivars grown are
registered with the governments in the countries in which the industrial hemp
for our products is cultivated. The Company also sends products and CBD-rich
hemp oil to multiple laboratories nationwide for independent testing. Test
results are available on Company websites or by contacting the Company
We stand firm in our support of Dixie's defense of the allegations by the
former employee. The Company will exercise all legal means available to defend
Red Dice Holdings and MJNA should an immediate apology and retraction not be
issued by the former employee regarding her false statements.
About Medical Marijuana, Inc.
Our mission is to be the premier cannabis and hemp industry innovators,
leveraging our team of professionals to source, evaluate and purchase
value-added companies and products, while allowing them to keep their
integrity and entrepreneurial spirit. We strive to create awareness within our
industry, develop environmentally-friendly, economically sustainable
businesses, while increasing shareholder value. For more information, please
visit the Company's website at: www.MedicalMarijuanaInc.com
About CannaVest Corp.
CannaVest Corp. is in the business of investing and developing hemp-based
cannabinoid companies. CannaVest Corp. also develops, produces, markets and
sells end-consumer products to the nutraceutical industry containing the hemp
plant extract, cannabidiol (CBD). Additionally, the company resells—to third
parties—raw product acquired by CannaVest Corp. pursuant to the company's
international supply relationships. CannaVest Corp. seeks to take advantage of
an emerging worldwide trend to re-energize the production of industrial hemp
and to foster its many uses for consumers. Cannabinoids (cannabidiol/CBD) are
natural constituents of the hemp plant, and CBD is derived from hemp stalk and
seed. Additional information is available from OTCMarkets.com or by visiting
HempMedsPX™ offers mainstream marketing, sales, customer service, and
logistics for the cannabis industry. HempMedsPX™ is a corporate portfolio
company of Medical Marijuana, Inc. (OTC Pink:MJNA) and the exclusive master
distributor and contracted marketing company for CannaVest Corp (OTC:CANV) and
Medical Marijuana, Inc. In addition to handling sales and distribution,
HempMedsPX™ is the communication hub for the Medical Marijuana Inc. portfolio
About CanChew Biotechnologies
CanChew Biotechnologies focuses on the treatment of pain and other medical
disorders with the application of chewing gum-based cannabis/cannabinoid
medical products as well as food and nutraceutical products for general
The company is focused on the R&D and execution of their clinical development
plan and potential out-licensing of their technology. Clinical development
focuses on the R&D of the formulation, production and the development of
chewing gum-based products for the treatment of conditions like pain, nausea
and vomiting, anorexia, spasticity and various other medical issues. For more
information on the company, visit CanChewBiotech.com.
About PhytoSPHERE Systems
PhytoSPHERE Systems is a global phytocannabinoid biotechnology company based
in San Diego, California with an exclusive license for use by CannaVest Corp.
(OTC:CANV). The company utilizes advanced cultivation methods and
state-of-the-art processing technology leading to development of
pharmaceutical, nutraceutical and food products.
PhytoSPHERE Systems, the manufacturer of the CBD-rich hemp oil used in Real
Scientific Hemp Oil (RSHO), has developed special cultivars (similar to
"strains") that produce hemp that is especially rich in CBD, making it
possible for PhytoSPHERE to offer all-natural products with high
concentrations of hemp-based CBD. For more information, visit:
About Wellness Managed Services
Wellness Managed Services provides management support and services
tocooperatives, collectives, health and wellness facilities, and medical
clinics throughout North America. The services offered range from practice
management to product distribution.Our mission is to provide a comprehensive
array of clinically supporting health and wellness products and services which
will attract patients while providing for a fully operational, profitable
enterprise. We seek to provide facilities and patients alike with the latest
in quality products and support services that will serve the health and
wellness community. For more info, click here.
About Red Dice Holdings
Red Dice Holdings, LLC ("Red Dice") is the owner of the Dixie Brand of
products including, Dixie Botanicals. The company has over 70 unique consumer
products and is one of the most recognizable cannabis and hemp brands in the
world. For more information on Red Dice Holdings, click here.
FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the FDA and are not intended to
diagnose, treat or cure any disease.
FORWARD-LOOKING DISCLAIMER This press release may contain certain
forward-looking statements and information, as defined within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, and is subject to the Safe Harbor created by those
sections. This material contains statements about expected future events
and/or financial results that are forward-looking in nature and subject to
risks and uncertainties. Such forward-looking statements by definition involve
risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of Medical Marijuana, Inc. to be materially
different from the statements made herein.
LEGAL DISCLOSURE Medical Marijuana, Inc., CannaVest Corp., and HempMedsPX do
not sell or distribute any products that are in violation of the United States
Controlled Substances Act (US.CSA). These companies do grow, sell and
distribute hemp-based products and are involved with Federally Legal
Distribution of Medical Marijuana-based products within certain international
markets. Cannabidiol is a natural constituent of hemp oil.
CONTACT: For further information, please contact:
Investor relations contact:
Stuart T. Smith
Medical Marijuana, Inc.
Toll Free: 888-OTC-MJNA (888-682-6562)
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