SAN DIEGO, Nov. 21, 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 exclusive master 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 developmental highlights.
Operating highlights for the third quarter are as follows:
HempMedsPX posted net earnings 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 (including subsidiaries).
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: 2nd 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 imports.
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 anticipated.
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 products.
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 medicinal purposes.
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.
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 CannaVest.com.
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 of companies.
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 well-being.
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: PhytoSPHERESystems.com.
About Wellness Managed Services
Wellness Managed Services provides management support and services to cooperatives, 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.
For further information, please contact:
Investor relations contact:
Stuart T. Smith
Medical Marijuana, Inc.
Toll Free: 888-OTC-MJNA (888-682-6562)