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Does MJNA Own Dixie?

|Includes:Medical Marijuana, Inc. (MJNA)

One of the biggest misconceptions in the cannabis investing sector is the belief that Medical Marijuana, Inc. (OTCPK:MJNA) acquired the Colorado-based Dixie Elixirs & Edibles in 2012. Nothing could be further from the truth. If you already know this, then there is no need to continue. But, if you have any question about the relationship between MJNA and Dixie, read on.

First, don't blame yourself if you were confused. I don't want to accuse MJNA of fooling people on purpose, but there were many times when they blew smoke to obfuscate the reality. I described this earlier this year in a Seeking Alpha post. So what's the real deal?

MJNA created a subsidiary called "Red Dice Holdings", which is 60% owned by MJNA and 40% by Left Bank LLC (dba Dixie Elixirs & Edibles). MJNA kicked in $1.45mm, while Left Bank contributed the brand (Dixie) and intellectual property. The deal was described in an OTC Markets disclosure for Q2-2012:

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: MJNA