The Triple Leaf award is meaningless. All one has to do is submit a product to the publisher of the little-known "foundation" and meet relatively simple requirements as to how "green" the product and its packaging is. There might even be a "pay for play" aspect, involving buying advertising on the website.
I use Charlotte's Web as an example, but there are other high-CBD, ultra-low THC strains that meet the laws being passed, such as "R4".
Remember, MJNA is simply a distributor for RSHO, Cibdex and Cibaderm, which are owned by CannaVest. That company now has its own web store selling Cibaderm, Cibdex, and a product similar to RSHO, but doesn't use that name (I don't know why).
The reason RSHO is 6X the price of the other oils from the high-CBD marijuana strains is because industrial hemp is only 3% CBD (per Hempmeds) before processing, whereas the high-CBD marijuana strains are at 17% to start with. Therefore, it requires a lot of processing of the hemp oil in order to concentrate the CBD, and that adds a lot of cost.
You are remarkably uncritical.
MJNA has always had bad reporting and bad corporate governance. For an example beyond what I wrote about in my latest article, look at the situation regarding the number of authorized shares.
When MJNA's current management acquired the company from the prior ownership, which included HEMP's Bruce Perlowin, they didn't notice that when Perlowin was using BOD votes to change the number of Authorized Shares, he should have been using shareholder votes (a simple change, since he held 50% of the shares). The improper votes meant that the AS was never changed from 5B shares.
So they continued the process, then found out in 2013 that they had been doing it wrong, and had to issue a series of Articles Of Correction, but for nearly a year, instead of saying that the AS was 5B, they said that it was 950M shares capped by management.
Finally, in the 1Q/14 report, filed on July 3, 2014, they finally admitted to an AS of 5B shares.
I don't write or talk much about their products, except for the fact that RSHO is far more expensive than CBD from marijuana strains like Charlotte's Web.
My issues with MJNA have always been about their reporting and corporate governance. If they were to improve those things, I would have hardly anything to write about.
MJNA dipped to $0.08 in November, 2013, so it's been a year, and the reason it shot up in Feb, 2014 was because of the hype involving the legalization in CO.
I don't think that will be repeated this year, because there's no big legalization in January, 2015.
Then again, you never know.
No. The judge ordered the shares to be issued within three days of the ruling.
Besides, the number issued is based on the amount of the loan (plus accrued and unpaid interest) at the prices set in the notes. For $900K of the original notes, the price was set at $0.03, on the remaining $81K, the price was $0.09.
In the end, with the interest, the average price was closer to $0.03.
BTW, I wrote the article for two reasons:
1) MJNA needs to disclose these things to shareholders, especially the conversion possibilities of its Payable Notes.
2) If Roen has already received the 45M shares, it could be selling them to unsuspecting buyers, who will wonder why there is an apparently endless number of shares driving the price lower.
I wrote that article, then submitted it to SA. It went through their editorial process.
If you read the article, you will find that everything is sourced from magazine articles, SEC and OTCMarkets filings and court documents.
If I couldn't have provided proper source info for the article, I never would have written it.
Finally, I knew about the ruling for more than a month, but didn't write about it until after MJNA's motion to reconsider the judgement was reconsidered and DENIED. If MJNA had been GRANTED that motion, I would have included that info as well.
Sure MJNA can issue the shares. They have 950M outstanding, but are authorized to go to 5 billion in the Articles of Incorporation.
The loans were taken in Dec, 2012 and Jan, 2013, with the first $400K to be repaid in April, 2013. At the time the notes were signed, Roen Ventures was MJNA's former CEO Michael Llamas and CannaVest's CEO, Michael Mona, so it was a very friendly arrangement.
Probably because Mona was being sued by another company, he had to sell his shares of Roen to Bart Mackay, who by the end of 2013, had bought the other half from Llamas. Once he owned Roen, the "friendly" relationship between Roen and MJNA became all business, and Mackay asked for the conversion, because at the time, the $980K in notes were worth more than $10M in shares.
The lawsuit was over the conversion of three convertible notes, totaling about $981K. Once interest was factored-in, the amount was approx. $1.4M, which converted to 45M shares.
The shares are supposed to be unrestricted, and they should have been issued to Roen a week ago. Because the shares are unrestricted, Roen can sell them at its whim.
Many more details in the article.
I checked the Kannaway site, and see that they have officially announced an actual Dallas office, so while the two events I mentioned in the earlier post are at a private home and the Marriott, they will be opening an office in Dallas.
Sorry I didn't check this out further before I replied, but that article wasn't there yesterday.
Still, KannaWay's growth has slowed to a crawl, and shipments made to KannaWay via HempMeds have fallen as well.
KannaWay isn't starting a satellite office or training center in Dallas. This weekend, they are having an "opportunity" meeting (sales [pitch for new members) at a private home in the Dallas area, and then the next day, they're having a training session at a local Marriott hotel.
This is their standard practice for getting (and trying to keep) new brand ambassadors.
The thing is, the traffic to their website is down tremendously since KannaWay went live in April, and they no longer talk about the number of brand ambassadors.
Like most multi-level marketing schemes, KannaWay started fast, but is now in a long slog that usually results in near-failure.
They recently lost the exclusive contract to sell CannaVest's products online, and the aNew products that were announced several months ago have still not appeared in their product lineup on the HempMeds site.
Also, the initial surge from KannaWay is over, which is what accounted for the large decline in the 3Q revenues from 2Q.
A third example, which I think is related to the Authorized Shares issue, is the Red Dice Holdings debacle.
In April, 2012, when MJNA and Dixie Holdings' Trip Keber decided to form Red Dice Holdings, which would own the Dixie Brand for future licensing. MJNA was supposed to contribute something like 20M shares within (I think) 15 days of the signing of the documents.
According to a lawsuit filed by Dixie filed in July, 2013, MJNA never paid the shares, and so Dixie wanted to either dissolve the arrangement or make major changes in the structure.
IMO, the reason MJNA didn't make the payment was because of the fiasco involving the number of Authorized Shares and the Articles of Correction. Management simply didn't know if it had enough shares or not.
The complaint included a letter from Keberr's attorney asking for some things that could prevent a lawsuit, which included proper shareholder votes to get the corporate governance back in line, but apparently, MJNA's management refused to do this, and so the lawsuit moved forward, eventually to arbitration.
When the arbitration was over, Keber got the very profitable and growing Dixie Elixirs back from Red Dice, while MJNA kept Red Dice and the very small Dixie Botanicals brand of CBD-only products.
All-in-all, this was a very big loss for MJNA, and IMO, it was due to sloppy corporate governance.
Another example is when MJNA realized in 2013 that the board of directors had incorrectly altered the number of Authorized Shares without a vote of the shareholders (as required by law in Oregon, where MJNA is incorporated). They had made several changes in the AS, reducing it from 5 billion to several hundred million, then raised it to 600M, 750M and eventually, 950M, before they realized the error.
In June, 2013, the company filed several Articles of Correction with the Oregon Secretary of State, rescinding the earlier changes (they forgot one, however. More on that in a minute.) The corrections legally meant that MJNA had never changed the AS from 5B, but instead of putting that number into subsequent quarterly reports, it stated that the number of Authorized Shares was "capped by management" at 950M.
The thing about this was that, while management has the authority to not issue shares, the number of Authorized Shares are specified in the Articles of Incorporation, and that said that the AS was 5B. For management to say otherwise ("capped by management at 950M") was technically a lie.
Finally, in April, 2014, MJNA filed the missing Article of Correction in Oregon, and then in the 1Q/14 report issued a few weeks later, said that the AS was actually 5B, but still persisted in saying that the "issuable common shares" were capped at 950M.
Then, in the 2Q/14 filing, management removed the language about 950M shares, and said that it would eventually issue more shares to pay loans. It initially said that it would do this in the third quarter, but in the 3Q/14 filing, said it would do it in the 4th quarter.
Here's one example: Two years ago, MJNA said it planned to uplist to the OTC QB market (or better) from the pink sheets. In order to do so, it had to complete a two-year audit. Most companies would have waited until the end of 2012 and then audit 2011 and 2012, completing the audits within a few months of the end of 2012.
Instead, MJNA began a "slow walk" of the audit process, with every quarterly report saying how it had audited another three or four months of financials. One report might say, "we've audited 9 of 24 months of results", the next would say, "12 of 24", etc. In the 1Q/14 filing, MJNA included the usual update on the 2-year audit, saying that as of March 31, 2014, the auditor had completed 20 of 24 months.
Therefore, one would have expected then to announce in the 2Q/14 or 3Q/14 filing that the audit had been completed.
Instead, there was no mention of the 2 year audit status in either the 2Q/14 or 3Q/14 filings. MJNA simply deleted the section from the report with no explanation whatsoever.
What do you mean, "positive quarter"?
Total 3Q/14 consolidated revenue was $3.43M, which was down 29% from 2Q/14's $4.82M, and the consolidated operating loss was $834K.
HempMeds revenue was $2.75M, which was down 20% from 2Q/14's $3.43M.
The big shocker was HempVAP, which saw an 80% revenue decline from 2Q/14 #$%$$130K in 3Q/14 vs. $659K in 2Q/14). This is probably due to the initial surge of KannaWay orders in April and May ending.
Margins did improve, and expenses were 4% lower in 3Q/14.
MJNA will probably trumpet the net income of $400K, but that profit was only possible because of the $1.16M in extraordinary income from the 2M preferred shares received from LiveWire for HempWire.
BTW, LiveWire's common stock is down about 50% #$%$at $0.0111) since the end of Sept, so the preferred shares would likely be down the same amount, if they were publicly traded.
According to MJNA's IR contact, Perry Coleman, the claim in the Yahoo article that MJNA sold $60M in CBD products through all of its divisions was a mistake by the author of the article, and that they were referring to the market as a whole, not just MJNA. Here's a copy of the email received by a member on the Ihub board yesterday evening:
The number was inferred to be an industry sales number and not that of MJNA alone. The company notified Yahoo and believes they are working on a follow-up to the article.
Perry M. Coleman
The printed version of the report on yahoo, in a blog post by Shawna Ohm, states that the $60M is from all divisions, but consolidated revenues from MJNA in the 1st half (all divisions) was only $9M.
The only way they could get to $60M would be to count revenue at retail for anyone who sells the products it ships or companies in which it holds shares, like CannaVest.
Really bad reporting on Ms. Ohm's part. IMO, she was "played" by MJNA.