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Alan Brochstein, CFA
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Alan Brochstein, CFA has worked in the securities industry since 1986, primarily with the responsibility for managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent research and consulting to registered investment... More
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  • Does MJNA Own Dixie? 5 comments
    Sep 22, 2013 10:53 PM | about stocks: 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:

    READ MORE

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

    Stocks: MJNA
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Comments (5)
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  • Ashraf Eassa
    , contributor
    Comments (8821) | Send Message
     
    You mean this thing still trades? :(
    23 Sep 2013, 12:58 AM Reply Like
  • The_Ripper
    , contributor
    Comments (47) | Send Message
     
    Yes Ashraf, and trading higher than when you screamed GET OUT NOW.
    23 Sep 2013, 04:48 PM Reply Like
  • The_Ripper
    , contributor
    Comments (47) | Send Message
     
    Alan. If MJNA doesn't own Dixie, who does? MJNA bought the brand and IP from Left Bank LLC. There is no company "Dixie Elixirs and Edibles." MJNA owns the brand and Red Dice Holdings (which MJNA owns 60% of licenses out the rights to the brand. You know this. So why do you keep saying MJNA doesn't own Dixie Elixirs when it clearly does? Left Bank LLC is the company in Colorado that manufactures and sells the products under a licensing agreement with RDH which MJNA is the MAJORITY owner.
    23 Sep 2013, 04:48 PM Reply Like
  • The_Ripper
    , contributor
    Comments (47) | Send Message
     
    So, if MJNA doesn't own Dixie Elixirs through their 60% ownership of Red Deice Holdings, who does? Left Bank LLC doesn't. They are the manufacturer and distributor of the THC products in Colorado through a license arrangement with RDH. So it is pretty clear that MJNA owns Dixie Elixirs and Edibles.
    23 Sep 2013, 04:48 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Sorry, that is incorrect. Dixie Elixirs & Edibles has a license from Red Dice Holdings. That company is owned by Left Bank LLC. I wish we knew the details of the license - it could be free for all we know.
    23 Sep 2013, 07:18 PM Reply Like
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