SAN DIEGO, April 11, 2013 /PRNewswire/ -- Medical Marijuana, Inc. (OTC: MJNA), a leading cannabis and hemp industry innovator, today is pleased to pre-announce its fourth quarter earnings. The company earned net income of approximately $5.52 million on gross revenues of $8.45 million for the quarter ended March 31, 2013. This represents a gross revenue increase of over $3.35 million when compared to the prior quarter ended December 31, 2012. When compared to the same quarter ended March 31, 2012 this represents revenue increase of $6.68 million.
Operational and development highlights
Operating highlights of the quarter were as follows:
- Expanded its portfolio of innovated cannabinoid based phyto-medical companies with an investment in KannaLife Sciences. KannaLife Sciences, Inc. is a late stage bio-pharmaceutical and phyto-medical Company involved in the research and development of novel new therapeutic agents designed to reduce oxidative stress, and act as immuno-modulators and neuroprotectants.
- KannaLife Sciences currently holds an exclusive license with National Institutes of Health – Office of Technology Transfer ("NIH-OTT") for the Commercialization of U.S. Patent 6,630,507 "Cannabinoids as Antioxidants and Neuroprotectants" (the "'507 Patent").
- Dixie brand received national exposure in Fortune Magazine, Boston Globe, Martha's Vinyard Times, USA Today, Fast Company, Channel 5 Boston, increasing public awareness for the company and its brands.
- Dixie brand continued product development and captured additional market share. Currently Dixie addresses an estimated 90% of the addressable market b the number of available accounts in Colorado.
- PhytoSPHERE Systems signed a licensing agreement with CannaVest Corp. (OTC: Canv) for the exclusive use of its name. MJNA also signed a contract with CANV to outsource its manufacturing as well as its hemp production\cultivation. The transaction allowed MJNA to streamline its focus to its core industries while still allowing the company to benefit for the production, distribution and growth of the brand and its licensee.
- PhytoSPHERE Systems proprietary extraction technology helped the Company produce cost effective, high value CBD oil with concentrations of up to 85% by volume and expects to have full scale production of a 95% plus pre CBD extract in May of this year.
- PhytoSPHERE successfully produced its first CBG (Cannabigerol) and CBGA (Cannabigerol-Acid) containing hemp oil. Opening up an entirely new market for product development and sales, as well as wholesale raw ingredient sales opportunity. CBG and CBGA have shown to have extensive health and wellness benefits.
- PhytoSPHERE signed additional contracts to provide for significant expansion of its hemp oil products line. Expected to more than quadruple last year's production.
- Company expanded its US based laboratory with additional team members and equipment. MJNA actively hiring in all departments. Company signed additional lease space for its expansion.
- Canchew CBD gum is in full scale Over the Counter product manufacturing and production. Product sales to start third week in April.
- The Company finalized plans for Canchew biotechnologies European clinical trials beginning in 2013. MJNA provided $12 million in MJNA equity to secure its product development, clinical trials and expansion costs.
- Rebranding started of CanChew Biotechnologies Corporate Website to be completed in April, updates include: Clinical development path with timelines and interactive update modules, additional and expanded research library.
- Rebranding and launch started of the Canchew over the counter product sales and informational website, which include: Canchew Store front and shopping carts, expanded social media and blog components, store availability tracker and locator, additional subscription options for clients in need of a larger supply of Canchew CBD chewing gum.
- Canipa Holdings – Set up in 2012 to handle the marketing, sales and distribution of Medical Marijuana Inc.'s portfolio of products throughout Europe and the European Union Trade Zone participant counties made significant progress in the first quarter. This year we have seen medical marijuana being legalized in Italy and the Czech Republic, with nearly a dozen more countries in discussion of legalization for medical and/or recreational use. The company has set up a distribution network of pharmacies, clinics, wellness centers and retail stores that will allow us to offer our products to this developing market.
- Canipa has finalized its terms for marketing, sales and manufacturing for 20 plus of its products for the EU and US markets. Of these products, 22 have along with the manufacturing agreements, received EU State Certificates of Health Safety Free Sale Certificates. This is one of the most significant developments in the Medical Marijuana Inc. product development. These products will be available through our entire pipeline of distribution and will over the coming quarters cross promote and develop brands for the USEU markets that address different consumer audiences and demographics.
- HempMeds Online platform finished a transaction that included over 1700 online sales and marketing sites, which will allow our products to be marketed and sold on. The sites are managed real time with a database user interface, that allows all 1700 plus sales sites to be updated on pricing, news and many other features at a simple managers interface, which drastically saves capital and time, while dramatically increasing efficiency, tractability and our ability to quickly launch products. The company believes HempMeds has the ability to create groundswells within the cannabis and hemp industry online product sales and marketing community.
- The company has greatly expanded its portfolio of products and has put these products into manufacturing over the first quarter of 2013. These products are to be launched this month. Products include CBD-Vape oil and vaporizers, reformulated and branded CBD product lines, Bulk Wholesales raw ingredients, CanChew Over the counter CBD gum, Flavored Vape-CBD product lines and many more.
- The Company continued to explore several potential acquisition and investment opportunities in established cannabis and hemp related businesses. Expecting closings in May, 2013.
Update on Audit-
In addition, since the close of the first quarter, Medical Marijuana, Inc. continued to retain its auditing firm to perform the audit of its financial records for the quarter ending March 31, 2013 and all the way back for a twenty four month audit history. The Company completed all of the pre-audit work during Q4 and submitted its first audited financials for the quarter ending December 31, 2012. We expect the twenty four months of audit history to be completed no sooner than the end of Q2 of 2013.
Update on DTC-
The company had previously submitted all requested documentation from the Depository Trust Corporation (DTC) for the requested "chill" removal, since then the DTC has requested some additional documentation which will be submitted to them in April. Our corporate counsel has addressed in writing and written a legal opinion letter for the DTC to address their questions.
Update on up listing and fully reporting status with SEC.
The company has positioned itself to become fully reporting with the Securities and Exchange Commission (SEC) once the twenty four month audit history is completed by the PCAOB auditing firm. The company has hired a Public Accounting and Auditing firm to complete all of the necessary paperwork, once completed it will be submitted to our PCAOB auditing firm for final approval and completion. Then the company's counsel will prepare the corporate registration statement for review and approval from the Securities and Exchange Commission.
"The company at great expense, time and energy has successfully navigated one of the most interesting and dramatic quarters the industry has seen. From new favorable laws being passed in the US and abroad, to industry naysayers, from governmental bodies asking for our support in drafting legislation and guidelines, to waiting for the US Justice Departments stance on Washington and Colorado State recreational laws. We have seen significant change and the vast majority of that has been positive. We have had growth across all our brands and have added a few more to our family of companies. With all the change, I would like to reiterate and refocus our company's position on the legal status of cannabis, marijuana and hemp--- and remind shareholders that our business model is not dependent on the legalization of any of these plants, or the change in any current legal guidelines regulating cannabis, marijuana or hemp. Our products fit the current regulatory environment; we would not build a business on the "hopes" of legal change, but have built our business in the current legal framework that exists today. Legalization of marijuana from a medial or recreational standpoint only expands the opportunities for the company, but does and will not define our growth at this point in time. Our current markets are vast and growing rapidly," stated Michelle Sides, Chairman and COO of Medical Marijuana, Inc.
Ms. Sides went on to say, "We are very pleased with the results of the quarter, I would like to take this time to thank our team for their hard work and dedication, and to our shareholders for their continued support."
The Company reported that it intends to post its 1Q audited financial statement and disclosures on or before May 15, 2013.
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 KannaLife Sciences:
KannaLife Sciences, Inc. is a late stage bio-pharmaceutical and phyto-medical company involved in the research and development of novel new therapeutic agents designed to reduce oxidative stress, and act as immuno-modulators and neuroprotectants. KannaLife Sciences currently holds an exclusive license with National Institutes of Health – Office of Technology Transfer ("NIH-OTT") for the Commercialization of U.S. Patent 6,630,507, "Cannabinoids as Antioxidants and Neuroprotectants" (the "'507 Patent").
For more information, please visit the company's website at: www.kannalife.com
About PhytoSPHERE Systems
PhytoSPHERE Systems is the world's leading cannabinoid based Biotechnology Company that develops and builds technology specifically for the cannabis industry. This includes the research, development and production of specialty cannabis cultivars. The company acquires, develops and manages traditional cannabis agricultural facilities, as well as produces cannabinoid based high value oil, extracts and products for the wholesale and retail markets.
About Dixie Botanicals
Dixie Botanicals offers innovative hemp oil products for health conscious consumers. Our formulation experts include scientists, clinical herbalists and nutritionists, who work to integrate our hemp oil into a variety of beneficial and uniquely effective over-the-counter (OTC) products– both dietary supplements and a topical balm.
For more information, please visit the company's website: http://dixiebotanicals.com
For additional information and media coverage of Dixie Elixirs and Botanicals click on any of the links below:
Fast Company "Innovation Agents"
60 Minutes "Rocky Mountain High Segment"
60 Minutes "Overtime" segment
Newsweek October 22 Cover Story, "The New Pot Barons"
Newsweek Cover Story Photo Gallery
PBS / WBUR
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.
Investor Relations Contact:
Stuart T. Smith
SOURCE Medical Marijuana, Inc.