Carlsbad, CA / March 18, 2014 / The Marijuana Index, the first
and only registered equity tracking index for marijuana stocks,
cannabis stocks, and hemp stocks featuring dynamic financial
content, closed yesterday at $29.11 -- a far cry from its
recent high, pun intended. Green rush bulls are left with
plenty to be excited about, as several issuers continue to surge,
and macro-news for the industry shows a favorable outlook for
cannabis-at-large.
A Path to Schedule (None)?
In a complete mockery of the definition for Schedule I, the
Department of Health and Human Services signed off on a study which
allows for medical marijuana studies in 50 veterans suffering from
PTSD. PTSD is known to cause anxiety, sleep deprivation,
flashbacks, depression, and even symptoms of mania or violence.
While it would be irresponsible to assume the results,
favorable response or clinical efficacy of marijuana in this study
would be vindication for long-time supporters and a possible
solution for as many as 7.7 million Americans who suffer from the
disorder. Traumatic brain injury, or TBI, is another severe
and often misunderstood diagnosis which plagues veterans (and NFL
players) -- one which marijuana compounds could potentially improve
due to its well known anti-inflammatory properties. America has a
responsibility to fully evaluate anything which may prove
beneficial in treating injured veterans, and this was the right
move for health problems caused in the line-of-duty.
The broader implications of the federal authorization are
sweeping; possibly as significant as the Department of Justice
announcements to relax banking laws surrounding cannabis
transactions. The Drug Enforcement Agency is expected to also
approve of the PTSD study, which further illustrates the
desperate need for a change to the Controlled Substances
Act. At this point, the listing of marijuana on Schedule I is
almost laughable.
GrowLife (OTCQB: PHOT) VS. Apple
(NASDAQ: AAPL)?
GrowLife is currently featured in a CNNMoney "March Stock Mania"
bracket.
An "homage to the NCAA brackets - Wall Street style," GrowLife
is pitted in the first round against Apple (NASDAQ: AAPL).
Apple. Didn't David once beat Goliath? A
clear sign of the times and overall interest in the company -
GrowLife's peers in the faux tournament include some familiar
names: Intel, IBM, Tesla, Facebook, Starbucks, Microsoft,
Best Buy, Amazon, Caterpillar, GE, Netflix, AT&T, Ford, Exxon
Mobil, BlackBerry, Disney, Cisco, Verizon, Twitter, Bank of
America, HP, Google, 3D Systems, Citigroup, Boeing, JPMorgan Chase,
American Airlines, Coca-Cola, General Motors, and Gilead
Sciences.
GrowLife appears to have lost the match to Apple, who is
currently "beating" Intel by a wider margin in the next round.
It seems someone at CNNMoney has been paying attention to the
meteoric rise of GrowLife, which includes several joint ventures
which further the issuers diversity. GrowLife enjoyed a
32.14% uptick Monday, with shares closing at an all time high of
$0.777 per share (an interesting number on St. Patrick's day).
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mCig (OTCQB: MCIG) Boasts First Quarterly Profit
in Corporate History
Speaking of companies on the rise - mCig recently announced that
they were positioning to be the first company listed in The
Marijuana Index to achieve an uplisting to a national stock
exchange. Also closing at $0.77 on Monday, mCig announced a
host of bullish insights into recent achievements: the
successful launch of mCig 2.0, balance sheet improvements, sales of
$85,109 in only 24 inventory days for mCig 1.0 and mCig 2.0,
completion of previously announced acquisition Vapolution, Inc.,
and "debt, financial debt, and interrelated party loans reduced to
zero." This is certainly a company to watch... The much
anticipated S1 registration of VitaCig has the potential to
significantly bolster mCig's balance sheet due to a
shareholder-friendly gesture wherein CEO Paul Rosenberg will
contribute his pro-rata VitaCig shares toward the mCig treasury.
The company hopes to file the VitaCig S1 with the SEC no
later than April 20th, 2014 (a clever goal date which doesn't go
unnoticed, mCig).
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Update on Marijuana: The Real Estate
Play
An index press release issued earlier this month discussed how
marijuana companies are leveraging real estate creatively to
execute deals -- well known MediSwipe (OTCQB: MWIP) announced
today the execution of an LOI and joint venture agreement which
will enable the company to sublease individual parcels of an 80
acre plot to fully-license, compliant growers and dispensaries in
Colorado. The company reportedly will receive rents and
management fees for providing infrastructure, and hopes to create
the largest managed facility of its kind in the state.
Tenants could move in as soon as May 2014.
An article by Juliette Fairley on
MainStreet.com highlighted Bill Gottlieb and Jake Schrader of
New York based Articulated Investors testifying in favor of
cannabis legalization on behalf of the New York Assembly Health
Committee. Referencing a recent sale-leaseback with L.E.A.F.
Aspen, Schrader states in the article "our return on capital with
this commercial building is greater than it would be if we were
leasing the same building to any other industry we are aware of."
Consider the implications of this and other real estate
transactions. These sort of deals could pave the way for more
growing space than previously available, as investors gain comfort
in similar transactions and new funds deploy real estate based
models. This could go a long way toward satisfying increased
demand for cannabis. The real estate trend is expected to
increase over time, but several public issuers appear to be well
positioned and prepared.
Stay up-to-date with other companies as they leverage real
estate by signing up for The Marijuana Index Newsletter:
visit http://www.marijuanaindex.org/ and enter your e-mail to
receive free updates.
Independent Certification: The Final Frontier of
Cannabis
As highlighted by a mutual press release and Benzinga article
announcing a joint venture between GrowLife and Vape Holdings, the
cannabis industry is strikingly devoid of standard operating
procedures and good manufacturing processes.
Recreational cannabis was official in Colorado in January 2014
-- yet Colorado regulators are still running to catch up to
overwhelming demand and new challenges. This process will
likely repeat as other states approve adult-use legislation.
Regulation, quality, and overall consistency problems are
still rampant in California (who first legalized medical cannabis
in 1996 through Proposition 215), and pose various issues to state
and local governments.
In Colorado, calls to qualified engineers and proven experts who
specialize in auditing other popular industries are reportedly
steady. Decision makers in states (and countries) enacting
any fashion of medical or adult-use marijuana laws are faced with a
daunting task which extends far beyond the basic question of "to
legalize or not to legalize."
Questions which plague decision makers include: "How do we
keep tabs on this industry? What defines quality? What
sort of compliance should be established? How do we regulate
these businesses? What do we do to monitor taxation?
How do we protect consumers?"
Consider for a moment the following:
1) States seemingly have no idea what to do.
Colorado, which by all means appears to have been extremely
successful in its roll-out of recreational cannabis, still
recognizes a desperate need for unified standards. Washington
conducted an outreach of various consultants to help in
establishing licensing guidelines, but will face the same universal
challenges (as will each of the current states mulling over
legalization).
2) Emerging cultivators, extractors, edibles kitchens,
and businesses are blinded by the green light of potential
financial gains -- but some are clueless on how to run an
efficient marijuana operation (let alone how to create a product
safe for consumption by humans).
3) Established businesses have no centralized
regulation or recognized standards, often guided by a
hodge-podge, on-the-fly list of ideals that are largely more
reactive than proactive.
4) An independent certification body for the cannabis
industry appears to be the only real solution.
An emerging private company which ventures to solve these
problems and more is being monitored by the index team: Bud Basics.
Through the Bud Basics 4200 Standard, Bud Basics is the first
quality management system tailored for the cannabis industry.
Developed by experts in standards creation and certification,
the company expects to establish the benchmark for quality in the
cannabis industry.
Bud Basics 4200 Certification would make the lives of regulators
easy, and serves the industry as a whole by enlisting prominent
experts in each respective discipline through the Bud Basics
Industry Benchmark Committee. These experts in
cultivation, extraction, manufacture of edibles, and business
sustainability will work in tandem with the Bud Basics
Standards Creation Committee -- a logical and efficient model
which combines cannabis expertise with quality management toward a
unified methodology which all businesses would adhere to.
The company website highlights four specific standards
processes, each based upon a foundation of expertise from relevant
standards within other industries: Grow, Extract, Edible, and
Sustainability. Bud Basics expects to become the ideal
partner for companies who wish to illustrate their commitment to
consumers, regulators, and the overall future of cannabis: an
independent, third-party verification service based upon rigid,
established criteria -- similar to stringent standards which
already govern manufacturing processes throughout the world.
Bud Basics envisions a day when consumers can identify a quality
product from a certified business when they see the Bud Basics
Certification Mark. Those involved in growing,
extracting, cooking, or operating cannabis businesses would benefit
from an independent certification body. Bud Basics features a
unique strategy by enlisting the aid of executives and experts in
various disciplines through their two committees -- a move which is
sure to be well received by industry insiders and consumers
alike.
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About The Marijuana Index
Network partners of cannabis media leaders Cannabis Financial
Network (http://www.cannabisfn.com/), The Marijuana Index is the
first and only registered equity tracking index for marijuana
stocks, cannabis stocks, and hemp stocks – providing investors and
listed companies with dynamic market data and streaming content.
Currently detailing more than thirty publicly traded issuers,
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