Medical Marijuana, Inc. Reports Year End 2016 Financial Results and Operational Highlights - Product Sales by Quarter Increased 66% Q1-Q4
SAN DIEGO, May 2, 2017 /CNW/ -- Medical Marijuana, Inc. (OTC PINK: MJNA), the first-ever publicly traded cannabis company in the United States, today announced financial results for the quarter and year ending December 31, 2016, and provided an overview of recent operational highlights. The Company continued to show strong growth throughout the year, as 2016 revenue increased quarter over quarter by 66% from Q1 to Q4 and Net Comprehensive Income increased to $171,387,975 which is 731% higher than 2015. The company had net revenue of $8,003,943 in 2016.
"As the No. 7 investor in Medical Marijuana, Inc., I'm proud to say we are on course for a historic 2017," Medical Marijuana, Inc. CEO Dr. Stuart Titus said. "From groundbreaking research conducted on the Company's products in Latin America during 2016, to substantial market cap growth by the Company's major investments and the development of new proprietary molecules and IP by portfolio companies, shareholders have a lot to be excited about."
Titus continued, "Medical Marijuana Inc. is a holding company with diversified assets that include nutraceutical sales divisions, as well as investments in early stage pharmaceutical development companies - all in the emerging cannabinoid space. We continue to believe in the future of the botanical as well as the pharmaceutical side - the growth in the Company's net assets in the past year only furthers our belief in our long term strategies to build shareholder value."
Medical Marijuana, Inc. had a positive year of growth in 2016, both with the Company's investments and wholly owned subsidiaries, including international expansion, new patent and trademark filings, sweeping new executive team appointments, new licensing agreements, and unprecedented developments in clinical research -- both for the Company's investment companies and flagship product Real Scientific Hemp Oil™ (RSHO™).
Fourth Quarter and 2016 Highlights
During 2016, Medical Marijuana, Inc. and its investments and subsidiaries achieved the following milestones and significant events:
1) AXIM Biotechnologies
Medical Marijuana, Inc is a major investor in AXIM Biotechnologies (OTC: AXIM), owning 22,669,125 shares of the cannabinoid research and development biotech company. AXIM achieved significant growth and milestones in the past year including a closing share price of $8.70 as of December 31, 2016, which is an increase of 2,618% from December 31, 2015. In addition to this significant increase in value, AXIM Biotechnologies achieved the following milestones:
- Received one new patent from the USPTO for its cannabinoid chewing gum, covering chewing gum as a delivery mechanism for all cannabinoids, including THC.
- Filed 4 new patent applications - 62/328,467 for "chewing gum with cannabinoid and nicotine," 62/427,797 for "chewing gum with cannabinoid and gabapentin," 62/410,469 "chewing gum with opioid and cannabinoid," and 62/411,067 "suppositories comprising cannabinoid."
- AXIM's intellectual property portfolio now includes 11 patent applications in various stages of approval.
- AXIM now has registered 18 trademarks nationally and internationally, with 5 more trademark applications pending, all based on products formulated by AXIM.
- AXIM received positive pharmacokinetic (PK) data results on its CanChew Plus® CBD Gum. AXIM also signed an LOI with a major US API company for development of dronabinol (synthetic THC)-based functional chewing gum.
- AXIM signed contracts with Quay Pharma in the UK for development and manufacturing of a number of new pharmaceutical products.
- The Company also completed a proof of concept study on its AX-1602, a dermatological product in patients with psoriasis and atopic dermatitis at the Maurits Clinic, The Hague, The Netherlands.
- AXIM entered into clinical trials on treating irritable bowel syndrome (IBS) with the company's CanChew Plus® 50mg CBD gum at Wageningen University in the Netherlands with 40 patients.
- The Company also signed a land purchase agreement for building of its R&D and manufacturing facility with the city of Almere, The Netherlands.
- AXIM signed distribution contracts for CanChew Plus® and MedChew® Rx with Rafa Pharmaceuticals, for distribution in Israel.
- AXIM also signed a distributorship agreement with ICC (International Cannabis Corporation, ICC.V) for distribution of its products in South America.
Medical Marijuana, Inc. is the original investor in AXIM Biotechnologies and its predecessor CanChew Biotechnologies, LLC and is very pleased to see that the Company's investment is paying off through these significant increases.
2) Kannalife Sciences
Medical Marijuana, Inc. also owns 16.7% of portfolio company Kannalife Sciences Inc., a late-stage biotechnology company involved with the pharmaceutical development of new therapeutic compounds based on cannabinoids. Kannalife has garnered a licensing agreement with the United States National Institutes of Health (NIH) for two indications: (1) Hepatic Encephalopathy (HE) and secondly for traumatic head injury, known as (2) Chronic Traumatic Encephalopathy (CTE). In addition to these licensing agreements, Kannalife Sciences achieved the following milestones in 2016:
- Announcement of a patent on a new CBD-like compound named KLS-13019 which eliminates the limitations of CBD for a greater "drug-likeness."
- KLS-13019 was found to be 50-fold more potent and greater than 400-fold safer than CBD and exhibited a profile consistent with improved oral bioavailability. This discovery of the body of science behind KLS-13019 was published by the American Chemical Society.
- Kannalife received the first-ever DEA permit granted to a US-based company to import pharmaceutical-grade cannabidiol to continue their feasibility studies to help treat HE and CTE. The company's NIH license to research a treatment for CTE was also featured in a major article by Sports Illustrated.
- Kannalife successfully produced formulations of CBD and KLS-13019 pharma-grade products to be used in clinical programs with CRO partners Catalent and Normaco respectively.
- Kannalife progressed in their clinical development plan through completion of a feasibility study at Temple University for treatment of Hepatic Encephalopathy.
- The Company also identified and patented 17 new novel cannabidiol-like compounds.
Medical Marijuana, Inc. expects to see significant advancements in Kannalife Science's clinical development programs in the near future heading into 2017, using Kannalife's proprietary technology and exclusive agreements with the National Institutes of Health and the DEA.
Medical Marijuana, Inc. is an investment portfolio, whereas its business is to support the Company's investments and subsidiaries. Medical Marijuana, Inc. investments and subsidiaries saw a year of massive international expansion and product development in 2016.
Medical Marijuana, Inc.'s wholly owned subsidiary HempMeds is the portfolio's predominate consumer brand and saw a year of massive expansion and continued growth for its line of cannabidiol (CBD) hemp oil products. After receiving the first-ever import permit from Brazil for Real Scientific Hemp Oil™ (RSHO™) in 2014, HempMeds® accomplished the first-ever import permits for its RSHO™ and RSHO-X™ products from the federal governments of Mexico and Paraguay in 2016. In addition to these achievements, HempMeds achieved the following milestones:
- HempMeds increased its US wholesale business by more than 50%
- HempMeds' flagship THC-free product RSHO-X™ became the first cannabis product to be allowed for import into the country of Mexico by COFEPRIS, which has been prescribed by the medical community in Mexico for treatment of epilepsy, chronic pain, post-chemotherapy breast cancer, and diabetic neuropathy.
- HempMeds' products were a part of multiple scientific studies including a study performed by renowned neurologist Dr. Saul Garza Morales on 39 children with refractory epilepsy in Mexico. As released by Dr. Garza at a Mexico City press conference, the results included a reduction of seizures in 86% of patients.
- HempMeds hosted the first-ever doctors symposium in the country of Mexico aimed at educating medical professionals on the benefits of CBD and the proper way to prescribe it.
- HempMeds increased its US sales staff to the largest in the company's history.
- HempMeds expanded distribution into other Latin American countries, including Argentina, Paraguay, Colombia, and Chile.
Medical Marijuana, Inc. and HempMeds anticipate putting a significant amount of resources into both the Company's rapidly expanding Latin American marketplace and also upcoming clinical development plans using the Company's products for the treatments of multiple indications.
Medical Marijuana, Inc.'s wholly owned subsidiary Kannaway is the Company's premier lifestyle marketing brand and saw a year of massive growth and revitalization. This resulted in Kannaway's revenue increasing by 10-times in a year-over-year comparison. In addition to this impressive increase in sales revenue, Kannaway achieved the following milestones:
- Kannaway added key leaders into management positions, including the appointment of new CEO Blake Schroeder and President Brad Tayles.
- Kannaway increased the number of on-boarded Brand Ambassadors from under 1,000 in the previous year to over 5,000 as of December 31, 2016.
- Kannaway increased its already substantial customer based by 5-times.
- Kannaway revitalized and refreshed its brand with the introduction of a new website, new packaging and brand materials, release of a new corporate video and hosted multiple national events across the country.
Medical Marijuana, Inc. subsidiary Kannaway is the fastest-growing company in the direct-selling cannabis space with an exponential growth outlook for the future.
Medical Marijuana, Inc. was pleased to see legislative reform in the past year in the cannabis industry. Some of these highlights include:
- A historic four US states legalized medical marijuana programs and another four states legalized adult recreational use of marijuana, making it a total of 28 states and the District of Columbia with some kind of medical marijuana legislation, and 44 states if states with CBD-only laws are included.
- Around the world, cannabis legislative reform took place in 14 countries, adding to the growing number of countries that are adapting their laws to reflect the will of the people and make medical cannabis more acceptable to those in need.
- The cannabis industry in the US has grown to $6.7 billion last year and is expected to grow to $50 billion by 2026.
FOURTH QUARTER AND YEAR-END 2016 FINANCIAL RESULTS
Cash Position: Cash and cash equivalents as of December 31, 2016, were $1,109,884 -- compared to $240,993 as of December 31, 2015.
Net Comprehensive Income: For the year ending December 31, 2016, Medical Marijuana, Inc. had a Net Comprehensive Income of $171,387,975 from investment activities, as compared to revenue of $20,603,756 for the year ending December 31, 2015, which is an increase of 731%.
Quarterly Revenue: Revenue increased quarter over quarter in 2016 by 66% from Q1 to Q4. This increase in revenue is projected to continue into 2017.
Yearly Revenue: For the year ending December 31, 2016, Medical Marijuana, Inc. showed revenue of $8,003,943 from sales of the Company's products, as compared to revenue of $9,215,366 for the year that ended December 31, 2015.
About Medical Marijuana, Inc.
Our mission is to be the premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate and purchase value-added companies and products, while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, develop environmentally-friendly, economically sustainable businesses, while increasing shareholder value. For details on Medical Marijuana, Inc.'s portfolio and investment companies, visit www.medicalmarijuanainc.com.
To see Medical Marijuana, Inc.'s video statement, click here.
Shareholders are also encouraged to visit the Medical Marijuana, Inc. Shop for discounted products.
FORWARD-LOOKING DISCLAIMER AND DISCLOSURES This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.
The statements in this press release have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease. The Company does not sell or distribute any products that are in violation of the United States Controlled Substances Act. The Company does sell and distribute hemp-based products.
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SOURCE Medical Marijuana, Inc.