I awoke a few mornings ago eager just like every other morning since I purchased Medical Marijuana (OTCPK:MJNA) in November. Half awake I starred at my computer screen as my eyes fixated on MJNA's 20% loss. Intrigued, I looked for the culprit, which I found almost immediately. My eyes now fully open, read in disbelief as I watched my favorite Marijuana Company slandered right in front of me. After finishing the article, I realized something was amiss. Multiple inaccuracies plagued the paper, and within hours many parts of it had been pulled.
I decided to do my do diligence as an investor and reporter, and found the Investors relations website quickly phoned the Investor Relations Manager of MNJA
Stuart T. Smith answered the phone, a knowledgeable and friendly guy, he was able to smooth out all of my morning uncertainty. My first question for him was regarding the tier that MJNA is sold in, which is OTC Pink Sheets. This tier is one of the lower tiers that a company can be in, and describes how much information they report to the public and how frequently. This tier does not necessarily reflect the quality or risk involved, but mainly stands as the barrier between a company that follows all US reporting laws and not. For more information check out the site here
Yes MJNA is currently classified as OTC Pink Sheet, but Stuart insisted that MJNA was in the process of converting to a higher tier, now that they are making money, since most company's start off in the Pink Sheets to save money. It takes 24 months of official auditing recorded with the SEC for a company to upgrade tiers, and so far MJNA has 3 months of audited financials, meaning that their past three months in fact are valid.
My main concern from the slanderous article was not about the absurd portraits it attempted to paint about the executives (most of which were false) but about how it claimed MJNA was cooking the books using uncertified CPA's. Well all of that is just false. They use certified, Anthony W. Imbimbo & associates. I read reviews from his clients, and the only negative that I was able to find was that his office was cluttered. Not that he was some unethical sleaze ball (here's the link.)
I have to quote one line of the article, just because it is such a joke. It reads "Anthony W. Imbimbo culinary institute of America trained chef (with a minor in cooking the books.)"
Where was information found that he is a cook, maybe he was 30 years ago? And why in the world do you think he is cooking the books, when you have no evidence.
But lets get back on track.
What I learned from my call with Stuart helped reinforce my confidence in this company and leads me to believe that before three months ago MJNA wanted to be in the Pink Sheets since they really had nothing to show in their financial statements. After they started making substantial gains in revenue tough, they wanted to report it to investors to show they are now legit, thus the reason why they are attempting to make the switch.
With the so called "slanderous article" being released just two days before MJNA comes out with their annual report, and first forward looking projections, I see the article as being no more than a well timed hate article. I will let you decide if it was merely a coincidence that this author took information that has been out their for years and decided before MJNA's biggest announcement of all time was the proper time to unleash it. Also on a side note, Kentucky passed its hemp bill, meaning MJNA could now expand to another state.
The main goal of this article is not to persuade you that MJNA is a good buy or not, but to act as a reminder that you can't always trust everything you read, and that some investors put out reports in hopes of affecting stock price. Don't be tricked by one misinforming article, do research and let the facts speak for themselves.
Disclosure: I am long OTCPK:MJNA.