Medical Marijuana Reports Strong Financial Results in 2016
Ryan Allway
June 6th, 2017
News, Top News
The cannabis industry could be worth over $50 billion by 2026, according to Cowen & Co., which represents a significant growth rate over its current $6.7 billion size. Cannabidiol – or CBD – represents one of the most promising areas of the market given its non-psychogenic properties and growing list of potential medical benefits. Investors may want to consider companies that are operating on the cutting-edge of this booming segment of the cannabis industry.
In this article, we will take a closer look at Medical Marijuana Inc.’s (OTC Pink: MJNA) fourth quarter and full year 2016 driven by its investments across several areas of the market.
Strong Investment Portfolio
Medical Marijuana Inc. reported comprehensive income of $197,269,187 in 2016, which consisted primarily of unrealized gains on available-for-sale securities in its investment portfolio. Most of the gains came from its investment in AXIM Biotechnologies Inc. (OTCBB: AXIM) where it holds 22,669,100 shares with a market value of $231,904,893, as of June 1, 2017, when shares were trading at approximately $10.23 per share.
AXIM Biotech’s stock price has dramatically increased in value thanks to its expanding patent portfolio and near-term clinical trials. The company’s chewing gum-based cannabinoid delivery system offers superior bioavailability and extended release compared to capsules or other delivery systems. Management has already started clinical trials targeting irritable bowel syndrome and is gearing up for additional clinical trials targeting multiple sclerosis.
AXIM Biotechnologies Inc. (OTCBB: AXIM) Stock Performance
The company’s other investments include a 16.7% stake in Kannalife Sciences, which has a licensing agreement with the National Institutes of Health (“NIH”) for hepatic encephalopathy (“HE”) and chronic traumatic encephalopathy (“CTE”). Kannalife recently patented a new CBD-like compound that’s 50x more potent and 400x safer than the original cannabinoid and secured the first-ever DEA permit to import CBD to further their clinical studies.
Market Traction in Operations
Medical Marijuana Inc. reported revenue that reached $8,003,943 from its HempMeds and Kannaway subsidiaries. With the U.S. cannabis industry expected to grow from $6.7 billion last year to over $50 billion by 2026, the increase comes as consumers are increasingly embracing cannabinoids to help them live better and healthier lives. At the same time, researchers continue to prove that CBD and other cannabinoids have legitimate medical uses.
HempMeds, a leading consumer brand of CBD hemp oil products, accounted for roughly three-quarters of the company’s revenue last year. The subsidiary has already secured import permits for its RSHO and RSHO-X products from Brazil, Mexico, and Paraguay for a growing list of medical indications. Its U.S. wholesale business also increased by more than 50% last year. Researchers have been using the hemp oil products to support clinical studies as well.
Newly Launched Kannaway Website
The remaining one-quarter of revenue came from its Kannaway business, which is a lifestyle marketing brand that has been rapidly gaining traction. The subsidiary’s revenue increased 10x year over year to over $2 million thanks to an expanding independent distributor base that amounts to more than 5,000 members now. The combination of more distributors and a fresh new look helped the company increase its number of customers by 5x over the year.
Looking Ahead
Medical Marijuana Inc. (OTC Pink: MJNA) represents a compelling investment opportunity within the burgeoning cannabis industry. With its $231,904,893 investment in AXIM Biotech, the market is valuing the rest of the company at about $48 million – or less than 6x sales. This doesn’t even take into account Medical Marijuana’s other assets. The company’s in-house businesses continue to gain traction while its investments have the potential to create significant additional value moving into 2017 and beyond.
“As the No. 7 investor in Medical Marijuana, Inc., this is exactly what this Company of Firsts set out to do and I’m proud to say we are on course for a historic 2017,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “From groundbreaking research conducted on the Company’s products in Latin America, to massive market cap growth by the Company’s major investments and the development of new proprietary molecules by portfolio companies, shareholders have a lot to be excited about.”
Medical Marijuana Inc. reported total assets of nearly $400 million ($393,553,000) on its balance sheet, while its market capitalization stands at just $280,019,386, as of June 5, 2017. Investors have an opportunity to acquire stock at a fraction of its intrinsic value and gain exposure to the rapidly growing medical cannabis industry.
For more information, visit the company’s website at www.medicalmarijuanainc.com.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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