I wouldn't be caught dead at one of these moronic events!Quote:
Originally Posted by Fat City, LA
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I wouldn't be caught dead at one of these moronic events!Quote:
Originally Posted by Fat City, LA
I totally agree!! They want to steal your cash.Quote:
Originally Posted by busttheblock
http://imageshack.com/a/img835/5674/1adn4.jpgQuote:
Originally Posted by NikSam
fyi...I registered here just to comment on this. Nice piece and very informative on a bunch of different levels.....
OK, where to start.,....
Despite all the perfectly valid evidence to the contrary Kannaway is not in fact dead. My proof? Well when it was originally founded Kannaway was owned by a company called General Hemp (GH). GH's is a privately held company with almost no public disclosure, the owner of record was Stewart Titus but court documents have indicated that a significant portion was owned by Micheal Llamas. Llamas is currently facing fraud charges from the Lee Loomas ponzi scheme. That indictment and pending trial is why Micheal llamas is no longer the President of Medical Marijuana Inc (MJNA), but he directly and indirectly (through his ownership of H.D.D.C.) controls more shares of MJNA stock than anyone else. MJNA creates the products that Kannaway sells.
Kannaway by all rights should be dead. They never provided anything even approaching customer product value and instead resorted to what almost all modern MLMs try to do, sell the opportunity, commodify affiliate purchases and bleed their members dry. Their Alexa numbers have fallen through the floor (and seem to have started digging), their facebook activity is near non existent and they haven't uploaded a video to their YouTube account in months. Add to this former "field leader" Seth Fraser recently left kannaway to start a pyramid scheme and he seems to have taken some high, low and middle level "leaders" from Kannaway with him.
Forgive the formatting on this document, it isn't my fault. That is a private "Fairness Opinion" written by Houlihan Capital address the fairness of a sales price of Kannaway from General Hemp to MJNA. First it's important to point out one thing:
Attachment 10551
Houlihan Capital was not being paid to investigate the valuation of Kannaway for themselves, they were being paid to take the information Kannaway and MJNA supplied them with and base their report on that.
Let's be clear here, Kannaway has not generated a positive net income since last summer. It has been bleeding money and affiliates for a similar period of time. All of their 2014 "holiday special" promotions yielded a bit over nine grand in gross sales. Even by the unaudited information provided by Kannaway to Houlihan Capital Kannaway grossed just over $420K in 2014. And General Hemp is selling Kannaway to MJNA for $80 million dollars worth of MJNA stock at a 25% discount based on the average sales price of the stock for a ten day period prior to the deal being finalized. I don't know if that has happened yet, I put out some feelers to find out but came up short. When I first saw the document linked above it would have amounted to about 960 million shares, about doubling the number of MJNA shares outstanding but if it was based off of today's closing price (a new 52 week low) the number of shares would be north of 1.5 Billion.
So why in the hell would a publicly traded company (even if it is only pink sheet trash) more than double the number of shares in circulation to acquire a failed and MLM company? Wrong question. A majority share holder (and perhaps soon to be convicted fraudster) is selling that MLM company to MJNA shareholders and just to be sure the deal goes down without a hitch his General Hemp business partner (Titus) was just appointed to MJNA's board of directors. But Llamas and Titus are either doubling or more than doubling the total number of MJNA shares and putting them in their pockets. Oh, and this is a fun fact, Kannaway is facing a trademark lawsuit and if they were have lost that suit Llamas and Titus would be on the hook for any damages but now those potential damages are MJNA's share holders problem.
The least sleazy and potentially fraudulent aspect of Medical Marijuana Inc. is their MLM division. Now ain't that a kick in the head. But this means that Llamas and Titus need to keep pissing money to keep Kannaway afloat for the foreseeable future. They could be facing possible securities violations if they didn't.