Welcome!

Agile Computing Authors: Pavan Kumar, Darren Anstee, Elizabeth White, Liz McMillan, Pat Romanski

News Feed Item

Medical Marijuana, Inc. Releases 2012 Annual Share Holders Report and First Ever Corporate Revenue Forecasts

SAN DIEGO, Feb. 18, 2013 /PRNewswire/ -- Medical Marijuana, Inc. (OTCPink: MJNA), a leading cannabis and hemp industry innovator, today announced the release of its annual shareholders report including the 2012 financial statements with audited fourth quarter financials (Post 2/19/2013- OTC Markets).  The Company earned net income of approximately $7.1 million on record gross revenues of $12.38 million for the year ended December 31, 2012.  The company achieved significant growth in revenue and turned profitable during the year while also acquiring and developing some of the most recognizable and trusted brands in the industry. Below you will find the company's 2012 operating and development highlights.

Operational and development highlights

Operating highlights for the year are as follows:

CanChew Biotechnologies

  • Acquired a 50% interest in CanChew Biotechnologies (Click to View Patents: US and International)
  • Established GMP manufacturing partnership for large scale production of CBD chewing gum
  • Executed soft launch and market survey in Q4 with over 400 customers selected  from 1500 applicants
  • Secured corporate approval and funding to begin development and clinical trials for European FDA equivalent medical drug approval
  • Developing and extending patent rights to include other Active Pharmaceutical Ingredients (API's)
  • Developed a dual platform to sell the CanChew Gum as an Over the Counter (OTC) product without medical claim, while simultaneously securing its future clinical development
  • Received Legal opinion letter from corporate FDA council allowing company to market and sell CBD products while using the term "CBD" or "Cannabidiol" within the label and packaging of it's Over the Counter (OTC) product

Red Dice Holdings

PhytoSphere Systems

  • Acquired 80% of PhytoSphere Systems (Photo Gallery)
  • Harvested approximately 1,000 acres of specialty Hemp cultivars developed  to yield high levels of Cannabidiols (CBD)
  • Entered into agreement to license the brand name PhytoSphere and PhytoSphere Systems to Cannavest, as well as sold its excess inventory and production agreement\facilities for $35 million in cash and stock. This agreement allows MJNA to focus on the development of its brands and future acquisitions instead of farming or production. The companies reached an agreement to sell the CBD rich hemp oil to MJNA subsidiaries at a much reduced cost and without any additional upfront development and infrastructure costs
  • The company has now produced its specialty Hemp cultivars in three countries, establishing a complete network of farmers within the microclimates necessary to produce its High Cannabidiol (CBD) Cultivars that are used for extraction
  • The company established a production team, research lab, and extraction team to produce and export the High Value Hemp Cannabidiol Oil
  • Company successfully produced over 560 Million Milligrams of High Value Cannabidiol Hemp Oil

Canipa Holdings

  • Formed Canipa Holdings as a holding company for European product approvals, import and export as well as distribution agreements
  • Received approval to market and sell Hemp oil and Hemp based wellness products in Romania through an established distribution partner, once markets have been established the company will then look to license brands to distribution partners throughout Europe
  • Completed study with Romania based institution on the positive effect of CBD's on a variety of ailments

Wellness Managed Services (WMS)

  • Secured a management contract valued at $1.7 million annually, realized over $1 million in revenue
  • Continued negotiations to provide management services to various wellness centers and retail outlets. Due to competing priorities, the Company delayed these discussions until the Q1 2013
  • Company sees significant acquisition opportunities within this segment of the market
  • Once a facility is acquired WMS can integrate MJNA's entire portfolio of products and services, truly providing the industry with the first fully integrated and branded stores. These services can include the following:
    • Dixie Elixir and Dixie Botanicals branded products
    • HempMeds Rx Products
    • PhytoSPHERE Systems (Co-licensing opportunities with Cannavest)
    • Integrated seed to sale tracking solution for all products
    • Security, taxation, inventory control and management
    • Branding, marketing and product integration
    • Store capitalization, expansion or disposition

Corporate Accomplishments

  • Completed first ever audit in company's history with audit of Q4 financials. Accounting firm is currently auditing the prior 7 quarters to produce 2 years of fully audited financials
  • The Company has completed and submitted all documentation necessary for a market tier up listing (OTC)
  • The Company and its counsel have submitted all required documentation and legal opinion letters for the removal of the Depository Trust Corporation (DTC) imposed "chill"
  • Received an opinion letter from counsel stating that it is legal to import, export and sell hemp products in the United States while using the word "cannabidiol" in its name, labeling and marketing materials

Corporate Revenue Guidance for 2013-2014

The company is pleased to issue its first ever Sales Guidance and Outlook for 2013-2014. The company forecasts revenue for 2013 to be $47,000,000 with operating cash flows of $32,000,000 and has the potential to increase revenues in 2014 to $155,000,000 with operating cash flows of approximately $95,000,000.  

The company has spent the last year building its branding and product platform. Today the company has some of the most recognizable brands in the industry, and is focused on its core businesses and product distribution platforms, such as the Dixie Brand of products, Wellness Managed Services and CanChew Biotechnologies. Dixie is expected to have substantial growth through licensing and the acquisition, development and distribution of additional products, while Wellness Managed Services focuses on growth through the acquisition of retail health and well ness facilities and management contracts. CanChew  Biotechnologies is purely focused on it's Over the Counter (OTC) product line, starting its clinical trials and expanding on its patents and intellectual property (IP).

Additionally and as further described in the shareholder report, the Company entered into an agreement in December to license PhytoSphere Systems and sell its inventory to CannaVest, a hemp based agricultural company specializing in the development and sales of hemp based products. While the agreement was reached in December and an initial installment payment was made, the final sale agreement and transfer of assets will occur in Q1 2013. The terms of the licensing agreement and inventory sale call for payment by CannaVest to the Company of $35 million in cash and stock. This cash flow will enable the Company to focus on building its core business through the expansion of its branded products and acquisition of additional brands while leaving the ground work of farming, harvesting, extraction and product development to CannaVest. In addition the Company will continue to benefit from solid supply chain relationships with PhytoSphere for future purchases of high value CBD oil at a significant cost savings.

"2012 was an exciting and challenging year for the Company. We have had changes in management, expansion of our brands, the changing of state and international legislature, which has afforded us the opportunities of unimaginable growth. We are especially pleased to be able to meet our earlier commitment of providing our shareholders with the company's first audited financials and positioning the Company for eventual up listing. The audit process is long and costly, especially for a company that is in our industry, with the constant changes in banking, state and international guidelines. Our plan is simple in regards to bringing the company to a fully reporting status. First we need to have our 24 months audit completed, second we then submit all of the finalized 24 month audited results to a PCAOB SEC approved auditing firm who recertifies our prior audit and we submit to the SEC with the appropriate filings. We chose to take a two-step approach with this in order to save a significant amount of costs and time." said Michelle Sides, Chairman of Medical Marijuana, Inc. Sides went on to say, "The strength of our financial results along with the impressive achievements described above should give new and existing shareholders confidence that MJNA will be a dominant player in this fast growing industry."

Finally, as many investors are aware, the Company has been the subject of various derogatory articles published by bloggers and penny stock newsletters. We take these statements and allegations very seriously and are working with our attorneys to evaluate all of our legal options. We will defend our Company and the hard work that so many people have put in to build our business. We thank you, our loyal shareholders and valued customers, for your continued support.

Financial Tables for 2012


Three months ended

Mar. 31, 2012

Three months ended

Jun. 30, 2012

Three months ended

Sep. 30, 2012

Three months ended

Dec. 31, 2012

2012 Total

Revenue

$1,788,445

$2,403,624

$3,001,902

$5,193,654

$12,387,625

Assets

$6,356,301

$7,908,677

$8,131,147

$16,384,698

$16,384,698

Debt

$101,778

$156,778

$585,437

$84,800

$84,800

Net Income

$1,208,136

$1,471,596

$1,193,937

$3,233,623

$7,107,292

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.

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.

Corporate Contact:  
Medical Marijuana, Inc.  
Toll Free: 888-OTC-MJNA       (888-682-6562)  
www.medicalmarijuanainc.com   
www.facebook.com/mjnainc   

Investor Relations Contact:  
Stuart T. Smith  
SmallCapVoice.Com, Inc.  
P. 512-267-2430      
F. 512-267-2530  
Skype: SmallCapVoice.com  
AIM: SmallCapVoice7  

SOURCE Medical Marijuana, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...