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What is Medical Marijuana Inc?

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Tomorrow, March 27, 2010, Medical Marijuana Inc. will be holding its second event, a convention in San Diego, CA. Medical Marijuana Inc. bills itself as America’s first publicly traded marijuana company. The stock is selling nicely, investors are pouring in, and its gaining customer’s interest. And why wouldn’t it? After all, medical marijuana is a booming industry, reported to be worth billions of dollars. It is growing exponentially, and Medical Marijuana Inc. is going to lead the way to reaping the benefits of this burgeoning industry; or so they want you to believe.

However, upon close examination, an investor would realize that they are buying into nothing more than smoke and mirrors. Medical Marijuana Inc. is taking advantage of the fact that stock investors know very little about the medical marijuana arena, and on the flip side those that are knowledgeable in medical marijuana have very little knowledge about the stock market. With such a large gap between the stock investors and the medical marijuana industry, very few have called out Medical Marijuana Inc. for what they really are; a scam.

I contacted Medical Marijuana Inc. via e-mail, posing as a possible investor that wanted to expand their company into Oregon. The only response I ever received was a phone number to call their sales representative ‘Bucky.’ One thing that immediately drew my suspicion is the fact that this ‘company’ is based out of Oregon, yet they are nowhere to be found in Oregon. I was expecting some type of response like ‘we are based out of Oregon, and already have several plans for the State.’ But instead, I just received a phone number.

When I called ‘Bucky’ I got the same answers that were provided on the internet, which are very misleading (I will give examples in a moment). I asked him if he got my e-mail, and he said that he had, and that he had called me about it. I thought that was very interesting, considering the fact that I never gave him my telephone number. After a couple minutes of confusion, it was determined that he hadn’t read my e-mail yet, and that he thought I was someone else. He offered to mail me their investor information, but I told him what I really wanted was very specific answers to very specific questions. I have a Bachelor’s Degree in Public Policy (summa cum laude), I am a registered medical marijuana patient in Oregon, and I own a pro-marijuana website theweedblog.com; needless to say I am not fooled as easily as their typical inquirer.

The first question I asked ‘Bucky’ was in regards to his products and services. Medical Marijuana Inc. has a ‘Revenue Collection System’ business solution that they claim will “significantly aid the dispensary/collective owner with the accounting challenges they currently face with cash transactions. This will reduce some of the major headaches they face internally as well as satisfy the all levels of government that they are in compliance.” The webpage goes on to say that “Requests have jumped anywhere from 50 to 300 percent, they say, since President Barack Obama took office and signaled that he won’t use federal marijuana laws to override state laws as the Bush administration did.” (click here) However, the memo they reference specifically states “prosecution of commercial enterprises that unlawfully market and sell marijuana for profit continues to be an enforcement priority of the Department.” It can be found in the fourth paragraph in the following link (click here).

When I presented this contradiction to ‘Bucky,’ he adamantly accused me of being wrong, and of misinterpreting the language of the memo. However, he did acknowledge that he had never read the memo himself, and that he was passing on information from the company’s ‘lawyers.’ I think the DOJ memo speaks for itself, and it CLEARLY makes this ‘service’ offered by Medical Marijuana Inc. nothing more than an empty promise to investors. The fact of the matter is that making a profit off of medical marijuana is not codified in any state law as of right now, and CERTAINLY isn’t recognized by the federal government.

Another business solution that is offered by Medical Marijuana Inc. is their ‘Turn-Key Management Solutions.’ This ‘service’ claims to “provide everything that is needed to get up and running and in full compliance from the start, from site location and negotiation, permits and licensing, dispensary design, contracts with suppliers and distributors, security systems and personnel, website design and management, compliance management, accounting services, inventory control, human resources, recruiting, training, marketing, community programs and more.” (click here) However, this information can be misleading.

When they say that the dispensary will be ‘in full compliance from the start,’ what are they referring to? The federal government does not allow dispensaries, very few states allow dispensaries, and even then, local jurisdictions are putting up ordinances and moratoriums at a staggering pace in order to limit dispensaries. For example, a recent ordinance in Los Angeles reduced the number of dispensaries from over 1,000, down to 70. When you consider the fact that many Bay Area municipalities have banned dispensaries all together, I think the picture becomes clearer that there is little money to be made using this ‘service.’ As far as the government is concerned, this company is doing nothing more than assisting people who are distributing an illegal substance, which last time I checked, makes them an accessory to multiple felonies. Although I do not agree with such prosecutions, I think it is crazy that a publicly traded company is building their business model on such practices. If their investors knew this information, would they still be investing millions of dollars into the company?

Another facet to Medical Marijuana Inc.’s business model is their ‘Marijuana Testing & Gradation’ solution. I specifically asked ‘Bucky’ about this, considering it says on their website that “MMI is in discussions to acquire an institutional level testing and grading solutions company and its products. MMI intends to provide testing and grading products and services to the Medical Marijuana Industry, from personal test kits for safety to institutional level testing and grading to determine quality and potency, as well as to identify potential contaminants. MMI testing equipment and services will soon be available to individuals, growers, dispensary operators and government institutions for public safety.” (click here)

I asked him where the testing company is going to be located, and when they will finalize the purchase. Understandably, he couldn’t give out that information until the deal was finalized, in order to not jeopardize the purchase. However, I pointed out the fact that Full Spectrum Laboratories was raided by the DEA in Colorado, just a handful of weeks ago, because it was suspected of testing medical marijuana that was involved in a ‘for profit’ scheme. When another laboratory in Colorado applied for a license to do the same thing, they were also raided. When I pointed this out to ‘Bucky,’ all he could say is that their lab is going to be different. If people want to invest millions of dollars into something that is based upon 100% speculation of future events, I have no problem with that. However, investors need to know that this ‘solution’ is far from a guaranteed thing; which is a message that is hard to find on Medical Marijuana Inc.’s website.

When you strip away the three previously mentioned ‘solutions,’ Medical Marijuana is nothing more than an education service/pyramid scheme. What do they have for concrete, physical evidence of their multimillion dollar, publicly traded company? One educational convention in Los Angeles, that had a little over 200 people in attendance…that’s it (click here). I have been to meetings at my medical marijuana center in Eugene, OR that had more people in attendance than that; which by itself is not an issue. But when you consider the fact that people are lining up at the door to invest millions of dollars into Medical Marijuana Inc., this could pose a big problem to investors in the future. I don’t think it will be on the magnitude of a Bernie Madoff scam, but the principle is still the same. At the time of the posting of this article, when you click on the ‘Products Page’ tab of Medical Marijuana Inc’s website homepage, it has NOTHING on it. Do you need any more evidence than that? (click here)

Once again, if people want to invest in something that is 100% speculation, like building a business model around something unproven, and most likely illegal, then by all means pony up the cash. But I get the feeling that people are investing money into this company because they think it is going to provide them lab testing, nationwide dispensary services, and tax solutions. When in actuality they can help you start an ‘education center’ where you can explain to people the rules of medical marijuana in their jurisdiction…that’s it. And when you get ‘enough’ people coming in on Tuesdays and Thursdays to get a lecture on ‘State Medical Marijuana Program 101,’ Medical Marijuana Inc. will do a weekend seminar for your center…maybe.

In EVERY medical marijuana state, this information is FREE to the public on government websites, by calling the state agency that oversees the program (easy to find online), at compassion/medical marijuana centers, NORML chapters, etc. Hell, we even have that information on MY website for free. Why are people investing MILLIONS of dollars into a company that is doing nothing more than charging for services that are free in every medical marijuana state? My opinion is that it’s is due to the fact that the company does a really good job of giving generic information that sounds good, but is EXTREMELY unrealistic, and most likely unlawful. But as ‘Bucky’ told me, ‘there is no grey area in education,’ so from a Medical Marijuana Inc. standpoint they are doing nothing illegal. Whether what they are doing is illegal is debatable, but whether or not it is immoral to take money in exchange for smoke and mirrors is not open for debate. If people want to invest millions of dollars into a ‘medical marijuana education company’ be my guest, but know that when you invest in Medical Marijuana Inc. you are not getting much more than that.

Click here for a great article about Medical Marijuana Inc.’s CEO, Bruce Perlowin.

Click here for a great article about how/why Medical Marijuana Inc. may be fraudulent. They put a disclaimer on their publications, so that may protect them from legal liability. But disclaimers can only protect a company so much!

Click here for a third party opinion from a stock investor named Timothy Sykes.

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  • totally agree with you pete all these people were against legalizing pot now the medical side of it has been voted the rich starving money heads want what we started srubbers parsites

  • I agree with that because it is also a medicine, so more helpful than alcohol..

  • Mark Bowman

    We would like to introduce ourselves Compassion Associates.We would
    appreciate any feedback you could offer us about our cause to promote medical
    marijuana in New Jersey .Please view our site http://www.compassionassociates.org.

  • MJNA Gal

    Here is the “Greenlady” at the MJNA’s LA Symposium: http://www.youtube.com/watch?v=9gYoYbClC3g

    Anyone sign up for TheHempNetwork.com ?

  • MJNA Gal

    I talked to the “Greenlady” and she said that she attended both Los Angeles and San Diego Symposiums and both were valuable to her. Excellent education and connections.

  • Did anyone go to that even in San Diego? And…how was it?

  • greenbob

    “Presumably they’re useful for someone, but whoever that is isn’t a retail investor. When I talked to FINRA, they said they’d done it simply because people were demanding more “transparency”. I was also told that retail investors should rely on the twice-monthly short INTEREST reports.”

  • MJNA Gal

    If the daily short volume is so useless, why does FINRA go to the trouble of publishing it and why are FINRA participants required to flag their short sales daily?

  • greenbob

    What are you doing here MJNA Gal? Did you learn how to con people from Bruce?

    Those FINRA daily short sale lists are just that, short sales only, useless info. Has nothing to do with actual short interest, fails to deliver or anything else.

    But, they’ve sure got a lot of people excited, for no good reason.

  • MJNA Gal

    Short selling isn’t blaming anyone, it is just a fact that accounted for most of the volume today such as http://regsho.finra.org/FORFshvol20100331.txt shows
    Date Symbol ShortVolume TotalVolume Market Percent
    20100331 MJNA 78,444 102,206 76.75%

    While the volume isn’t staggering the percentage of short volume is extremely high at 76.75% today.

    This is a battle between haters that hate MJ and/or are shorting MJNA and longs that support MJ legalization and MJNA as the catalysis that may have served as a tipping point in favor of legitimacy.

    Audits would help but since MJNA isn’t claiming much on their financial statements, that isn’t really a very big point, and as I recall there was a press release that MJNA hired a CPA to assist in getting PCAOB audits.

    For its baby life, MJNA is doing tremendously well, and there is no need to blame anyone because the stock is up 1750% from the day their name change was filed about a year ago with the State of Oregon. CVIV was down to about .10 just before the name change and after a 10 for 1 forward split that is equal to .01 and MJNA has sustained this increase for 1 year now. Sustaining that kind of increase with this evidence of short selling volume is one of the best success stories in the OTC penny markets.

    If not for this short volume, the stock could be at its yearly high of .69 or higher.

    It is only a matter of time before either 1. the shorts and critics regret their short sighted stance, or; 2. the longs regret their long sighted positions.

    In the meantime, the longs and shorts will both be winning and losing on the ups and downs.

  • bdog

    Marijuana Gal,

    If MJNA is such a legitimate company, and the bashing is all from disgruntled ex-employees and or competitors, why doesn’t MJNA release real audited financail information to show everyone how legitimate they really are? Wouldn’t that be the quickest and easiest way to end all the bashing? Currently all they release are forward looking statements about future events that might happen, but they never follow up with what really did happen. For instance we all heard how great the San Diego Expo was going to be, but maybe now they should state for the record how many actual tickets were really sold. Wouldn’t this go a long way to proving how solid and legitimate they really are? To be a real leader in an industry, you must lead the industry. What has MJNA actually brought to market that actually is leading the marketing? Or for that matter name any product that they have out in the market that is leading in anything? To blame everybody else but to prove nothing, isn’t that just proving the point that everyone keeps saying that this is all a big scam?

  • greenbob

    If you go to http://www.medicalmarijuanainc.com/ apparently, all the previous news on upcoming scheduled seminars to sell stock on news, have been cancelled, except for the RI in May

  • Skeptic

    Tickets to their Seminars are real products –

    how many tickets have been sold, and for how much? If they only sold 32 tickets to the first one, that doosnt add up to much.! telling peeple that they can bring ten friends for one tickett doesnt sound like the events are working. who have the consulted? and how much did they make?

  • greenbob

    Hi scammer MJNA Gal:

    says:

    LOLOL!!

    Officers and directors can sell only 1% of the o/s (apiece) every quarter.

    says:

    Cliff Perry said the officers stocks were off restriction but somehow Don sold a million or so shares a few months ago.

    Janice says:

    Not true. See what I said.

    says:

    Don is President and I think the shares were private placement memorandum but they have it worded in their filing- Private Party Memorandum for the sale of 2,000,000

    shares of restricted common stock

    says:

    Doesn’t matter. Officers and directors (each of them) can only sell the equivalent of 1% of the float every quarter.

    says:

    I guess free trading means float- 76,364,871

    says:

    Yes, it does. But they can only trade 1% of the o/s.

    My bad.

    cliff says:

    O/S is 219,354,321 so the can sell around 2 million shares each.

    says:

    Yep.

    says:

    Thank you. They are starting to blame the evil shorts for the declining PPS.

    says:

    Of course! Going to bed now… ‘night…

    says:

    Good night.

  • MJNA Gal

    It seems that MJNA has a few competitors and jealous people that can’t or don’t want to see that Medical Marijuana Inc is a real leader in this incipient industry. Tickets to their Seminars are real products. And they have not only earned $ from that product, but also from providing consulting services. If you think that Bruce or the insiders are dumping stock, first take a look at this
    http://regsho.finra.org/FORFshvol20100329.txt
    then change the date and you will see that the short volume regularly is very high. I wouldn’t be surprised if some of these libelous statements are being made by those shorting the stock. Even the link to Sykes shows that he and his followers are potential short seller, and therefore have a potential financial incentive. I’m not saying he is behind these negative posts, but reason leads me to think based on the short volume that a short seller may be to blame. There are a few disgruntled employees out there as well. I am on the long side and feel that my investment in MJNA is supporting the cause as well as a speculative investment with real upside potential.

  • bdog

    Herbi,

    Thanks for proving my point. You defended my previous statement on behalf of MJNA with a PR talking point about what could happen. What does this company have to show for their 1 year in business and selling stock to the uninformed masses except the money they make off of selling their own shares? They still have no products or any income streams, yet they release new PR stories every few days. Shouldn’t at least one of these “great deals or partnerships” have turned into a completed anything by now?

    Let me guess, have you ever worked for MJNA? Either now or in the past maybe doing PR for them?

  • paranoid pete

    keep corporations and medical marijuana seperate. down with medical marijuana inc!

  • Fuck Bruce Perlowin

    “MJNA currently has a patent pending for the tax remittence card, which could turn out to be an extremely valuable asset for MJNA and its shareholders.” Notice the word ‘could’ in Herbi’s statement. The whole point of skeptic’s arguments is that this business is 100% pipe dreams, and relies on wishes and hopes, not concrete information.When you tell the people to stick to what they know best — marijuana- and you are defending a marijuana related company, you show your ignorance.I guess Bruce isn’t like Madoff because he doesn’t take people’s money. Instead he trades them stock and takes their property and cars in exchange for a “really good investment.” Then when the investment proves to be as worthless as magic beans he changes the name of the company or is no where to be found.“MJNA makes it clear that this is a new business model operating in new territory, and is NOT offering a 10% return” they need to make it clearer that there is no return, especially if medical marijuana doesn’t work out like the company hopes “ MJNA has only been at it for 1 year now.” “I was told the Products page will be up and running very soon. (Maybe they should have put an Under Construction” notice up),”the company has been around a year and theres nothing on their products page. And you say under construction would be ok? If its such a great company why don’t they know what they are selling or at least not advertising it. I didn’t even realize how crappy the MJNA website was until I read this article — thanks weed guys. I have been to one of the symposiums before. They are great at giving a very brief overview of medical marijuana in general but nothing in depth and nothing that’s not available for free elsewhere. Who should people believe — people on the internet that have nothing to gain from telling the truth and give links to their information — or people that want to get your money for nothing by trading you worthless stock

  • Exposed

    souunds like someone is getting defensive because they sense their moneys is going Up In Smoke. poof

  • MJNA currently has a patent pending for the tax remittence card, which could turn out to be an extremely valuable asset for MJNA and its shareholders. If you go back a few PRs you will see that MJNA has partnered up with an OTCBB Company CMIB regarding the tax card.
    http://ih.advfn.com/p.php?pid=nmona&cb=1269799691&article=41785815&symbol=NO^MJNA

    Regarding pyramid schemes, the weedblog guy should stick to what he claims to understand: Marijuana.

    Comparing MJNA to Madoff is madly off base, because Madoff was taking people’s money and saying they were earning a specific return, when in fact Madoff was using their funds as he wished, and creating statements that showed returns to his investors that didn’t exist.

    MJNA makes it clear that this is a new business model operating in new territory, and is NOT offering a 10% return, or double your money or anything like Madoff or any other ponzi schemers.

    MJNA is a new company in a new industry and the investment community that is buying MJNA shares (out of the market- not poring millions of dollars into the company) is betting that MJNA will succeed,above delays MJNA may have with perfecting parts of their business plan along the way, legal obsticles, etc, and everyone knows that start up companies can fail, which they often do in every type of business. IF MJNA does actually succeed, their potential return on investors’ speculative investment can be substantial,

    I understand there are those on the side of the fence that are betting MJNA will fail by short selling shares, and if those short sellers are wrong, then MJNA and its shareholders will benefit if those short sellers are forced to cover upon MJNA really succeeding with any part of its business plan. It normally takes a new company 2 years to realize success or failure, and MJNA has only been at it for 1 year now.

    Based on MJNA’s new President, Don Steinberg and Chairman Bruce Perlowin’s joint successes in multilevel marketing and the phone card business, it appears that MJNA has a good chance of success.

    Before judging the the Educational Symposiums, the critic should experience one first. There is much more offered than what one can find on government web sites, and the business and networking connections one can find at these symposiums are excellent. Every aspect of the the Medical Marijuana business from A to Z is discussed by professionals, including lawyers, doctors, growers, providers of cutting edge fertilizer, products, services, and leading advocates.

    I was told the Products page will be up and running very soon. (Maybe they should have put an Under Construction” notice up), Certainly ticket sales to these symposiums is one of their products (which generates cash), and according to their last press release the company has earned from their consulting business and will earn from licensing, even if in restricted stock of other public companies.

    Buckey is new to MJNA according to a recent press release, and as I understand it, his only job is to close the sale of new partners for new venues regarding the Educational Symposiums. He is not expected to have every answer this early on in a newly emerging industry,

    I am a shareholder in MJNA and a former employee of Mr Perlowin and IMO, because, of his background with the Marijuana business, he has an expertise that few others may have in the new Medical Marijuana Industry.

    It seems the main intent of the author is to stir more readers to his web site and convert potential MJNA business associates to his own business.

    I see a brighter future for MJNA than what has been presented by the skeptics.

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  • bdog

    This company is all smoke and mirrors. They don’t have a tax remittance system, never had, nor do they have and pos system. The only thing that they have is that they are trying to put on seminars. The first one in LA sold 32 tickets. The second one in San Diego they were offering if you bought one ticket you can bring 10 other people for free.

    Douglas says, “Hi,
    This is a last minute offer! I am offering, for the single ticket price (215.00) , that you may bring up to 10 friends! I am covering the cost difference, as my gift to my friends! You must mention this E-mail. http://www.facebook.com/l/c0ebb;www.medicalmarijuanainc.com“>www.medicalmarijuanainc.com”>http://www.facebook.com/l/c0ebb;www.medicalmarijuanainc.com“.

    Event: Medical Marijuana Inc.- Educational Seminar/Symposium/Expo.
    What: Study Group
    Start Time: Saturday, March 27 at 8:30am
    End Time: Saturday, March 27 at 11:30pm
    Where: San Diego Convention Center, San Diego CA

    To see more details and RSVP, follow the link below:
    http://www.facebook.com/n/?event.php&eid=107647652597474&mid=21636e2G2938f2d8G4512938G7&n_m=cliff%40cannabizu.com

    Thanks,
    The Facebook Team

    This company sole reason for existence is to sell stock. Why people would invest in it just blows my mind. All they really do is monitor stock blogs and sites like this so that they can put up great stories about themselves. Their main product is really just PR stories to pump the stock. Even if you read their PR stories most of them talk about a future event that might happen, none of them talk about a signed event.

  • scjewel

    I have checked out this company and I agree with you. Wouldn’t want to invest $ with a criminal and that is what he is. There are plenty of POS systems that I am sure can handle these transactions. I think I responded to a sales position they advertised and the response email solicited me for an investment. Frankly the MM comunity does not need people like him as he makes us all look bad. I am for full legalization however in the mean time we do not need these kinds of people hidiing behind us making money.