Medical Marijuana, Inc. Reports Fourth Quarter and Year End 2017 Financial Results and Operational Highlights - Annual Revenue Increased 230% Over 2016
Apr 18, 2018, 09:00 ET
SAN DIEGO, April 18, 2018 /PRNewswire/ -- Medical Marijuana, Inc. (OTC PINK: MJNA), the first-ever publicly traded cannabis company in the United States, today announced financial results for the quarter and year ending December 31, 2017 and provided an overview of recent operational highlights.
The Company continued to show strong growth throughout the year, as 2017 revenue increased to over $26.5 million, an increase of more than 230% over 2016. Quarterly revenue for Q4 2017 grew to more than $9.4 million, an increase of more than 250% over Q4 2016 and a sequential increase over Q3 2017 of 17%.
Additionally, Medical Marijuana, Inc. subsidiary Kannaway® experienced significant growth with 2017 revenue of $15.9 million, an increase of nearly 270% over 2016.
"2017 was a historic year for cannabis legalization across the United States and the world and Medical Marijuana Inc. is proud to be on the forefront of groundbreaking industry lines," said Medical Marijuana, Inc. CEO Dr. Stuart Titus. "It is clear that the botanical and pharmaceutical side of cannabis is here to stay, which strengthens our belief in our long-term plans to continue to build shareholder value."
Titus continued, "Medical Marijuana, Inc. and its subsidiaries experienced substantial growth in 2017, breaking record after record in sales achievements. Our leadership teams have expanded greatly including international growth in Europe, Brazil, and Mexico. We feel that we are in a great position for even more growth in 2018."
Fourth Quarter and 2017 Highlights
During 2017, Medical Marijuana, Inc. and its subsidiaries achieved the following milestones and significant events:
Medical Marijuana, Inc.'s wholly-owned subsidiary HempMeds® is the portfolio's predominate consumer brand and saw a year of massive expansion and continued growth for its line of cannabidiol (CBD) hemp oil products, including the following:
- HempMeds® Brazil began the process of importing its Real Scientific Hemp Oil™ (RSHO™) Green Label into Brazil as the first company to offer legal medical cannabis products in the country.
- HempMeds® Mexico inaugurated its first office in Monterrey, Nuevo Leon, Mexico, as demand continued to grow for the Company's zero-Tetrahidrocannabidiol (THC) Real Scientific Hemp Oil-X™ (RSHO-X™) across the Country.
- Medical Marijuana, Inc. announced that a recent clinical study conducted by renowned Mexico neurologist Dr. Carlos G. Aguirre-Velazquez successfully utilized the Company's Real Scientific Hemp Oil-X™ (RSHO-X™) product.
- HempMeds® Mexico President Raul Elizalde spoke to the World Health Organization and helped influence the organization's expert recommendation not to schedule CBD as a drug.
Medical Marijuana, Inc.'s wholly owned subsidiary Kannaway® is the Company's premier lifestyle marketing brand and is the fastest-growing company in the direct-selling cannabis space with an exponential growth outlook for the future. 2017 revenue increased by nearly 270% year over year. In addition to the substantial increase in revenue, Kannaway® achieved the following milestones:
- Kannaway® expanded full business operations into the European marketplace using European-sourced materials and became capable of distribution to all citizens of European Union (EU) member nations, as well as other countries outside of the EU.
- Kannaway® unveiled several new products throughout the year, including:
- A renewed line of chewable energy supplements meant to enhance and energize.
- Kannaway® Essential Oils under its line of lifestyle products.
- A vaporizer cartridge loaded with 100 mg of pure CBD hemp oil and terpenes under its HempVAP® product line.
- A new full-spectrum hemp oil product Kannaway® Premium Hemp Oil Liquid.
- Kannaway® Pure Gold, a full-spectrum hemp oil that provides all the benefits of hemp without the presence of THC.
- Kannaway® SuperGreens.
- Hempy's® brand of Responsibly Sourced Hemp Clothing and Accessories.
Medical Marijuana, Inc. subsidiary Kannaway® is the fastest-growing company in the direct-selling cannabis space with an exponential growth outlook for the future.
Medical Marijuana, Inc. was pleased to see legislative reform in the past year in the cannabis industry. Some of these highlights include:
- A total of 29 states and the District of Columbia passed some type of medical marijuana legislation during 2017.
- Puerto Rico opened its first medical marijuana dispensaries at the start of 2017, making it the second Caribbean entity, after Jamaica, to legalize medical marijuana.
- California, Massachusetts, Maine and Nevada all passed measures legalizing recreational marijuana for adults 21 years of age or older.
- The industry took in nearly $9 billion in sales in the US in 2017 and employed 121,000 people.
- Between 20,000 and 28,000 cannabis businesses were in operation in the US by the end of 2017.
- Canada spent $5.7 billion on medicinal cannabis in 2017 and announced recreational sales will begin in 2018.
- Peru legalized medicinal marijuana nationwide, making it the newest addition to more than 20 nations where marijuana laws have been expanded.
FOURTH QUARTER AND YEAR-END 2016 FINANCIAL RESULTS
Annual Revenue: For the year ending December 31, 2016, Medical Marijuana, Inc. reported revenue of $26.5 million from sales of the Company's products, as compared to revenue of $8.0 million for the year that ended December 31, 2016.
Quarterly Revenue: Revenue increased each and every quarter in 2017.
Q1 Revenue: $3.6 million
Q2 Revenue: $5.7 million
Q3 Revenue: $7.8 million
Q4 Revenue: $9.4 million
Record Q4 2017 Sales of $9,423,761 an increase of 269% compared to Q4 2016
Record Q4 2017 Gross Profit of $6,733,645 an increase of 386% compared to Q4 2016
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 corporate video, click here.
Shareholders and consumers are also encouraged to buy CBD oil and other products at Medical Marijuana, Inc.'s shop.
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.
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.
Medical Marijuana, Inc. does 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 the federally legal distribution of medical marijuana-based products within certain international markets. Cannabidiol is a natural constituent of hemp oil.
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SOURCE Medical Marijuana, Inc.
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