From the Wires
Medical Marijuana, Inc. Releases 2012 Annual Share Holders Report and First Ever Corporate Revenue Forecasts
By: PR Newswire
Feb. 18, 2013 10:52 PM
SAN DIEGO, Feb. 18, 2013 /PRNewswire/ -- Medical Marijuana, Inc. (OTCPink: MJNA), a leading cannabis and hemp industry innovator, today announced the release of its annual shareholders report including the 2012 financial statements with audited fourth quarter financials (Post 2/19/2013- OTC Markets). The Company earned net income of approximately $7.1 million on record gross revenues of $12.38 million for the year ended December 31, 2012. The company achieved significant growth in revenue and turned profitable during the year while also acquiring and developing some of the most recognizable and trusted brands in the industry. Below you will find the company's 2012 operating and development highlights.
Operational and development highlights
Operating highlights for the year are as follows:
Corporate Revenue Guidance for 2013-2014
The company is pleased to issue its first ever Sales Guidance and Outlook for 2013-2014. The company forecasts revenue for 2013 to be $47,000,000 with operating cash flows of $32,000,000 and has the potential to increase revenues in 2014 to $155,000,000 with operating cash flows of approximately $95,000,000.
The company has spent the last year building its branding and product platform. Today the company has some of the most recognizable brands in the industry, and is focused on its core businesses and product distribution platforms, such as the Dixie Brand of products, Wellness Managed Services and CanChew Biotechnologies. Dixie is expected to have substantial growth through licensing and the acquisition, development and distribution of additional products, while Wellness Managed Services focuses on growth through the acquisition of retail health and well ness facilities and management contracts. CanChew Biotechnologies is purely focused on it's Over the Counter (OTC) product line, starting its clinical trials and expanding on its patents and intellectual property (IP).
Additionally and as further described in the shareholder report, the Company entered into an agreement in December to license PhytoSphere Systems and sell its inventory to CannaVest, a hemp based agricultural company specializing in the development and sales of hemp based products. While the agreement was reached in December and an initial installment payment was made, the final sale agreement and transfer of assets will occur in Q1 2013. The terms of the licensing agreement and inventory sale call for payment by CannaVest to the Company of $35 million in cash and stock. This cash flow will enable the Company to focus on building its core business through the expansion of its branded products and acquisition of additional brands while leaving the ground work of farming, harvesting, extraction and product development to CannaVest. In addition the Company will continue to benefit from solid supply chain relationships with PhytoSphere for future purchases of high value CBD oil at a significant cost savings.
"2012 was an exciting and challenging year for the Company. We have had changes in management, expansion of our brands, the changing of state and international legislature, which has afforded us the opportunities of unimaginable growth. We are especially pleased to be able to meet our earlier commitment of providing our shareholders with the company's first audited financials and positioning the Company for eventual up listing. The audit process is long and costly, especially for a company that is in our industry, with the constant changes in banking, state and international guidelines. Our plan is simple in regards to bringing the company to a fully reporting status. First we need to have our 24 months audit completed, second we then submit all of the finalized 24 month audited results to a PCAOB SEC approved auditing firm who recertifies our prior audit and we submit to the SEC with the appropriate filings. We chose to take a two-step approach with this in order to save a significant amount of costs and time." said Michelle Sides, Chairman of Medical Marijuana, Inc. Sides went on to say, "The strength of our financial results along with the impressive achievements described above should give new and existing shareholders confidence that MJNA will be a dominant player in this fast growing industry."
Finally, as many investors are aware, the Company has been the subject of various derogatory articles published by bloggers and penny stock newsletters. We take these statements and allegations very seriously and are working with our attorneys to evaluate all of our legal options. We will defend our Company and the hard work that so many people have put in to build our business. We thank you, our loyal shareholders and valued customers, for your continued support.
Financial Tables for 2012
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.
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.
Investor Relations Contact:
SOURCE Medical Marijuana, Inc.
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