Medical Marijuana Inc. (OTC: MJNA) Financing Guidance and Use of Funds
Last update: 3/2/2012 9:00:00 AM
SAN DIEGO, March 2, 2012 /PRNewswire via COMTEX/ -- Medical Marijuana Inc. (MJNA) announced today it has closed on the financing agreement with CannaBANK Inc, a private equity firm specializing in the capitalization and development of cannabis and hemp businesses. The company would like to updated shareholders on the terms of the agreement and the subsequent use of funds.
Effective March 1, 2012
Under the terms of the transaction, CannaBANK Inc. shall provide four million ($4,000,000) in liquidity for the purchase and development of several pending Medical Marijuana Inc. acquisitions. The agreement calls for following:
(1) CannaBANK to receive (A) an overall eight (8%) percent equity position in each licensed facility or developed product in which capital from CannaBANK is used in the acquisition or development of the business\product or (B) a twenty (20%) equity position in each business or facility that is fully funded by this transaction\CannaBANK.
(2) The capital must be deployed no later than September 1, 2012 or the balance of the funds will be returned to CannaBANK.
(3) The agreement does not call for a dilution or an issuance of the capital stock in Medical Marijuana Inc. CannaBANK will secure its interest in each acquired business or developed product.
(4) Nor does the agreement allow for recourse against Medical Marijuana Inc. Each transaction is secured by CannaBANK's equity position in said business or product.
The proceeds of the transaction are to be used for one or more of the following:
To complete the pending purchase of the bio-technology\license
To develop the first facility (cannabinoid bio-factory) utilizing the bio-technology\license to (a) produce high value organic bio-compounds sourced from the hemp plant and used as active pharmaceutical ingredients, and (b) the production of transgenic hemp (genetically engineered) plants for the development of cannabinoid based compounds such as cannabidiol (CBD)
To acquire and commercialize patented cannabinoid based products
To complete the acquisition of one or more licensed regional manufacturers and distributors of cannabinoid based products
"As a company we have spent the last eleven months preparing the company for this day. We have as of this quarter paid of all company debts, increased revenue nearly four thousand percent since March of 2011 and are now solidifying several key purchases that have taken in some cases two and a half years to get to this point. We feel confident that the closing of these acquisitions will solidify our continued strong growth and will strategically position our company as the leading provider of high quality organically grown cannabinoid extracts."
Over the past 40 years several laboratories throughout the world have conducted countless medical studies and clinical trials keenly focused on cannabinoids and specifically Cannabidiol (CBD) and its functionality within the human body. Throughout this same period, modern medical practices have improved the overall understanding of the human body and the functionality of the endocannabinoid system. Scientists have discovered that CBD naturally occurs in all mammal species when activated, greatly increases functionality within the nervous, endocrine and immune systems. In the past five years there have been an explosive increase in clinical trials, many of them conducted by the US Government Department of Health, showing CBD's therapeutic potential.
We feel it is important for shareholders to understand the significance of the cannabinoid market. It's important to note the institutions that have spearheaded the research of cannabinoids and the findings of those studies. Below we have included some of those findings.
Public Cannabinoid Research:
CANCER ALZHEIMER'S DISEASE PARKINSON'S DISEASE DIABETES ARTHRITIS MULTIPLE SCLEROSIS LEUKEMIA SCHIZOPHRENIA RETINAL DAMAGE CROHM'S DISEASE (IBS) ANTI-DEPRESSANTDEPRESSION OVERCOMING HEROIN ADDICTION ANTIOXIDANT ANTI-INFLAMMATORY REDUCES NEGATIVE EFFECT OF CHEMO ,_a_non_psychoactive_component_of.6.aspx NAUSEA AND PAIN ,_a_non_psychoactive_component_of.6.aspx ANTI-ANXIETY OBESITY LIVER DISORDERS PREVENTS STROKE TUMORS NEUROPROTECTANT Also includes Parkinson's, Alzheimer's and Epilepsy studies DYSTONIA EARLY MORNING DISORDER EPILEPSY CENTRAL NERVOUSSYSTEM DISORDER CARDIOVASCULAR DISEASE Cannabidiol (CBD Overview)
Marijuana and Cannabinoid (CBD) Video's
GW Pharmaceuticals Breast Cancer Cannabinoids Endocannabinoids Cannabinoid Science Anti-tumor properties of Cannabinoids Cannabinoids in Alzheimer's
"What is exciting about this industry is that it already exists, it's affective, accessible and growing rapidly. We are simply acquiring the businesses that currently exist, capitalizing them, removing inefficiencies, commercializing the products and managing their growth. We are thankful for our continued shareholder support and are committed to building long term value for our company." Stated Michelle Sides, Chief Operating Officer.
ABOUT MEDICAL MARIJUANA INC (MJNA)
Our mission is to be the world's premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate, invest in and purchase value-added sustainable companies, while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, pay homage to the visionaries and activists of the past and present, and provide the platform from which the industry can emerge into a global sustainable economy for all. Medical Marijuana Inc recognizes the vast and unequaled opportunities that exist in the rapidly expanding hemp and medical marijuana industries. The scientific recognition of cannabis has brought legalized marijuana use to the forefront of mainstream discussion, thus opening the door for safe and lucrative investment opportunities.
CannaBANK Inc. is a private equity firm dedicated strictly to the cannabis and hemp industry. The company specializes in the capitalization, development and acquisition of medicinal cannabis and industrial hemp businesses.