Invest in MJ Blog

SAN DIEGO, May 18, 2015 (GLOBE NEWSWIRE) -- Cannabis has been illegal in Brazil – regardless of whether the origin is from marijuana or hemp. That has all changed thanks to two mothers, one in the United States and one in Brazil – and Real Scientific Hemp Oil™ (RSHO™), a Medical Marijuana, Inc.-marketed hemp product via its partnership with HempMeds Brasil™.

Medical Marijuana, Inc. (OTC Pink:MJNA) is proud to announce to shareholders and the public that HempMeds Brasil's™ RSHO™ product has been written into world history as the first cannabis product to be approved for import by Brazil's federal government and used as a prescription for approved medical indications within Brazil including epilepsy (CDKL5 and Dravet Syndrome). HempMeds Brasil™ is providing the RSHO™ exclusively for the Brazilian marketplace while under temporary broad approval for additional medical indications, subject to clinical trials within the country.

Today, any resident of Brazil who has a government-approved medical indication can have access to RSHO™ hemp oil products and may do so with both a doctor's prescription and government-approved import documentation. ANVISA has issued a statement on the agency's website, featuring a photo of a tube of RSHO™ from HempMeds Brasil™, and explains how to apply for an import certificate. Currently the product is approved via direct registration from an individual consumer, HempMeds Brasil™ has been working for over a year on its formal product drug application and submission. The company expects this to take through 2015 to complete.

This blog post was written by Alan Brochstein and the original post can be seen here.

In typical fashion for the company, Medical Marijuana, Inc. (MJNA) dropped an aggressive press release lacking substance in what appears to be a last-ditch effort to interest investors in its comatose stock.  Before the market opened on 1/22/15, the company announced that it had signed a "Definitive Agreement to Acquire Kannaway, LLC", a newly formed multilevel marketing organization (MLM) that is owned by General Hemp, LLC.  General Hemp is controlled by Stuart Titus, who has long ties to MJNA and was able to pull out $7mm from CannaVest (CANV) as he sold into the speculative peak last year as described by Forbes Magazine and detailed in SEC filings.

The press release described the products, shared some information about the company's success, and trumpeted a valuation by Houlihan Capital of "$119.6-242.7 million".  That sounds huge considering MJNA itself is valued by the market at roughly $120mm based upon about 1 billion shares and a recent close near $0.12.  In my view, it's what MJNA didn't say that should leave investors concerned:

• What are the terms of the "definitive agreement"?
• What are the financials of Kannaway?
• How will the acquisition benefit MJNA shareholders?