SAN DIEGO, June 5, 2017 /PRNewswire/ -- Medical Marijuana, Inc. (OTCPINK:MJNA), the first-ever publicly traded cannabis company in the United States, today announced financial results for the first quarter ending March 31, 2017, and an overview of recent operational highlights. The Company saw a gross revenue increase from $1,535,728 in Q1 2016 to $3,612,739 in Q1 2017, a quarter over quarter increase of 135%. Total gross profit increased from $820,446 in Q1 2016 to $2,545,229 in Q1 2017; which is an increase of 210%. Total assets increased by 130% from $214,115,665 in Q1 2016 to $494,182,096 in Q1 2017. Net loss in Q1 2016 of ($11,096,659) was decreased by 79% over Q1 2017 to ($2,222,818). Net comprehensive income increased by 1188% quarter over quarter from ($9,708,598) in Q1 2016 to $105,632,830 in Q1 2017.
The increase in the net comprehensive income is mostly derived from the Company's unrealized gains from its holdings in AXIM Biotechnologies. Portfolio company Kannaway showed increased revenue from $305,670 in Q1 2016 to $1,741,553 in Q1 2017, an increase of 469%.
"We are pleased to see certain management re-structuring efforts rewarded after the company made changes in 2016," said Medical Marijuana, Inc. Dr. Stuart Titus. "We believe that our revenue and sales velocities have the ability to maintain their current momentum. We have had significant investment portfolio appreciation in terms of unrealized gains in the past year and expect 'market-average' performance in the future. We are satisfied with where operations currently sit and believe that in the coming years we will see other investments and company divisions adding nice value for the company and its shareholders."
Titus added, "Further, we continue to be encouraged by the growing international acceptance of cannabis and the progress our team has made in educating the world on its many therapeutic uses. I am quite excited about international expansion opportunities. We are thankful for our dedicated team and the continued support of our shareholders."
FIRST QUARTER OPERATIONAL HIGHLIGHTS
Medical Marijuana, Inc. investments and subsidiaries continued international expansion and product development in the first quarter of 2017.
Wholly-owned subsidiary HempMeds US, the portfolio's predominate consumer brand, continued to experience growth in 2017 and experienced the following milestones:
- Launched a new affiliate program.
- Hired a new sales manager.
- Increased the sales staff with the addition of ten inside and four outside representatives.
- Hired a new online sales and marketing director.
2) HempMeds Brazil®
93.4%-owned subsidiary HempMeds Brazil, which received the country's first import permit for cannabis products, achieved the following milestones in the first quarter of 2017:
- Partnered with one of the leading global wholesale distributors of pharmaceutical products.
- Began importing its RSHO™ Green Label, which contains a high concentration of cannabinoids in their acidic form, into Brazil.
- Announced authorization from the Brazilian government to sell its product for treatment of patients in the country suffering from Alzheimer's disease, Multiple Sclerosis, and Autism Spectrum Disorder (ASD).
- Held the country's first-ever medical cannabis symposium dedicated to providing the Brazilian medical community with information about the medical value of cannabinoids and how to legally import the Company's products into the country for patients with approved conditions.
- Hired a marketing and community engagement manager.
3) HempMeds Mexico®
Wholly-owned subsidiary HempMeds Mexico, which accomplished the first-ever import permits for a cannabis product for its RSHO™ and RSHO-X™ products from the federal governments of Mexico and Paraguay in 2016, achieved the following milestones in the first quarter of 2017:
- Its products were included in clinical research done by Dr. Saul Garza showing a decrease in epileptic seizures in 86% of patients.
- Received permission from Mexico's health authority COFEPRIS to import Real Scientific Hemp Oil-X™ (RSHO-X™) to treat pain associated with cancer, the Company's third approved indication in Mexico.
- Launched a new corporate website.
- Celebrated its one-year anniversary of operations in Mexico where it received the first permit in the country to sell cannabis products.
Subsidiary Kannaway, a premier hemp lifestyle brand, recently experienced 11-times revenue growth in a year-over-year comparison, and achieved the following milestones in the first quarter of 2017:
- Launched a new product, "Kannaway® Gold Premium Hemp Oil, an all-natural, full-spectrum, filtered CBD hemp oil, to its line of CBD lifestyle products.
- Unveiled a renewed line of chewable energy supplements, "Kannaway Energy Chews," a bite-sized line of hemp-based energy supplements.
- Announced the company's first ever international expansion plan.
- Appointed Alex Grapov as the company's International V.P. to oversee the expansion.
FIRST QUARTER INVESTMENT HIGHLIGHTS
1) AXIM Biotechnologies®
AXIM Biotechnologies (OTCQB: AXIM) is a cannabinoid research and development biotech company. Medical Marijuana, Inc. owns 22,669,100 shares worth approximately $308,704,704. The closing share price was $13.44 as of March 31, 2017, which is an increase of $13.04 from $0.40 as of March 31,2016. AXIM Biotechnologies achieved the following milestones:
- Received positive pharmacokinetic (PK) data results on its CanChew Plus® CBD Gum.
- Enrolled 40 patients and commenced its Phase II clinical trial for the treatment of irritable bowel syndrome (IBS) with its CanChew Plus® CBD Gum.
- Retained the services of global Contract Research Organization Ora®, Inc. to perform its upcoming product and development (based on AXIM IP) and clinical trials for treating glaucoma and dry eye utilizing cannabinoid-based therapeutics.
- Entered into a Term Sheet Agreement with a U.S.-based controlled-substances Active Pharmaceutical Ingredient (API) production company to develop a dronabinol-based functional, controlled-release chewing gum product based on AXIM IP and technology, which will be bioequivalent to Marinol®, which remains the only FDA approved cannabis-based drug available in the U.S.
2) Kannalife Sciences
Kannalife Sciences Inc. is an early-stage biotechnology company involved with the pharmaceutical development of new therapeutic compounds based on cannabinoids, which Medical Marijuana, Inc. owns 16.7% of. Kannalife has garnered a licensing agreement with the United States National Institutes of Health (NIH) for two indications: (1) Hepatic Encephalopathy (HE) and secondly for traumatic head injury, known as (2) Chronic Traumatic Encephalopathy (CTE).
- Accomplished significant advancements in its clinical development programs throughout 2017 using proprietary technology and exclusive agreements with the National Institutes of Health.
- Additional intellectual property is being pursued and filed.
- Multiple orphan drug candidates are being identified.
Legal cannabis is arguably the fastest growing industry worldwide.
- In the United States, 44 states, the District of Columbia, Puerto Rico, and Guam have passed cannabis laws to some degree
- Adult cannabis use is legal in 8 states including the District of Columbia
- Medical cannabis use is legal in 29 states including the District of Columbia
- CBD-only cannabis use is legal in 16 states
- North American sales of cannabis totaled $6.7 billion in 2016, according to Arcview Market Research
- North American sales are projected to hit $20.2 billion by 2021, according to Arcview Market Research
- U.S. hemp industry sales totaled $688 million in 2016, according to Hemp Business Journal
FIRST QUARTER 2017 FINANCIAL RESULTS
Q1 2016 – $1,535,728
Q1 2017 – $3,612,739
Q1 2016 – $820,446
Q1 2017 – $2,545,229
Q1 2016 – ($11,096,659)
Q1 2017 – ($2,222,818)
Net Comprehensive Income:
Q1 2016 – ($9,708,598)
Q1 2017 – $105,632,830
Q1 2016 – $214,115,665
Q1 2017 – $494,182,096
About Medical Marijuana, Inc.
We are a company of firsts®. 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 details on Medical Marijuana, Inc.'s portfolio and investment companies, visit www.medicalmarijuanainc.com.
To see Medical Marijuana, Inc.'s video statement, click here.
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FORWARD-LOOKING DISCLAIMER AND DISCLOSURES
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.
The statements in this press release have not been evaluated by the Food and Drug Administration (FDA) and are not intended to diagnose, treat or cure any disease. The Company does not sell or distribute any products that are in violation of the United States Controlled Substances Act. The Company does sell and distribute hemp-based products.
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SOURCE Medical Marijuana, Inc.