Brendan Kennedy of Privateer Holdings had this to say to The Midas Letter’s James West in an interview a while back:
James West: Okay. What do you think of all these companies that are publicly traded raising money from retail and institutional investors who have yet to gain a license even though they might have an application in…what do you think their chances are of actually getting up and running and making money and getting a license. I mean there’s over 800 license applications in
there now…how many of those do you see actually getting a license in 2014?
Brendan Kennedy: Oh…in 2014…it’s certainly less than 30. All the public companies that I’ve talked to – they have no idea what they’re doing. Most of them are run by charlatans and fraudsters.
James West: Wow. Tell me what you really think….
Brendan Kennedy: Yeah. Well we’ve been looking at this industry for four years. Been to hundreds of dispensaries around the world, I’ve been to 4 or 500 grows around the world. For some penny stock mining company to suddenly decide that they’re going to add cannabis into the description of their company and own this industry is absolutely absurd. This is a complicated industry. It’s more complicated than anyone realizes. It’s complicated from a...you know, we go moral, political, social, regulatory perspective, and you can’t just jump into this industry and start making money from day 1. I don’t understand why any company would want to go public in this industry. It just does not make sense.
Disclosure: I have no economic interest in any firm mentioned in this post.
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Wednesday, May 18, 2016
Medicine Man Technologies Q1 10-Q
Snips from the filing:
We were incorporated on March 20, 2014, in the State of Nevada. On May 1, 2014, we entered into an exclusive Technology License Agreement with Medicine Man Denver, Inc., f/k/a Medicine Man Production Corporation, a Colorado corporation (“Medicine Man Denver”) whereby Medicine Man Denver granted us a license to use all of their proprietary processes they have developed, implemented and practiced at its cannabis facilities relating to the commercial growth, cultivation, marketing and distribution of medical marijuana and recreational marijuana pursuant to relevant state laws and the right to use and to license such information, including trade secrets, skills and experience (present and future) (the “Medicine Man Denver License Agreement”).
We commenced our business on May 1, 2014 and currently generate revenues derived from licensing agreements with cannabis related entities, as well as sponsoring seminars offered to the cannabis industry. As of the date of this report we have or have had 42 fee generating clients in 14 different states.
Intangible Asset
On May 1, 2014, the Company entered into a non-exclusive Technology License Agreement with Futurevision, Inc., f/k/a Medicine Man Production Corporation, a Colorado corporation, dba Medicine Man Denver (“Medicine Man Denver”), a company owned and controlled by affiliates of the Company, whereby Medicine Man Denver granted a license to use all of their proprietary processes they have developed, implemented and practiced at its cannabis facilities relating to the commercial growth, cultivation, marketing and distribution of medical marijuana and recreational marijuana pursuant to relevant state laws and the right to use and to license such information, including trade secrets, skills and experience (present and future). As payment for the license rights the Company issued Medicine Man Denver (or its designees) 5,331,000 shares of the Company’s common stock. The Company accounted for this license in accordance with ASC 350-30-30 “Intangibles – Goodwill and Other by recognizing the fair value of the amount paid by the company for the asset at the time of purchase. Since the Company has a limited operating history, management determined to use par value as the value recognized for the transaction. Since the term of the initial license agreement is ten (10) years, the cost of the asset will be recognized on a straight line basis over the life of the agreement. In addition, each period the Company will evaluate the intangible asset for impairment. As of December 31, 2014 no impairment was deemed necessary.
Medicine Man Technologies Q1 10-Q
Disclosure: I have no economic interest in Medicine Man Technologies.
We were incorporated on March 20, 2014, in the State of Nevada. On May 1, 2014, we entered into an exclusive Technology License Agreement with Medicine Man Denver, Inc., f/k/a Medicine Man Production Corporation, a Colorado corporation (“Medicine Man Denver”) whereby Medicine Man Denver granted us a license to use all of their proprietary processes they have developed, implemented and practiced at its cannabis facilities relating to the commercial growth, cultivation, marketing and distribution of medical marijuana and recreational marijuana pursuant to relevant state laws and the right to use and to license such information, including trade secrets, skills and experience (present and future) (the “Medicine Man Denver License Agreement”).
We commenced our business on May 1, 2014 and currently generate revenues derived from licensing agreements with cannabis related entities, as well as sponsoring seminars offered to the cannabis industry. As of the date of this report we have or have had 42 fee generating clients in 14 different states.
Intangible Asset
On May 1, 2014, the Company entered into a non-exclusive Technology License Agreement with Futurevision, Inc., f/k/a Medicine Man Production Corporation, a Colorado corporation, dba Medicine Man Denver (“Medicine Man Denver”), a company owned and controlled by affiliates of the Company, whereby Medicine Man Denver granted a license to use all of their proprietary processes they have developed, implemented and practiced at its cannabis facilities relating to the commercial growth, cultivation, marketing and distribution of medical marijuana and recreational marijuana pursuant to relevant state laws and the right to use and to license such information, including trade secrets, skills and experience (present and future). As payment for the license rights the Company issued Medicine Man Denver (or its designees) 5,331,000 shares of the Company’s common stock. The Company accounted for this license in accordance with ASC 350-30-30 “Intangibles – Goodwill and Other by recognizing the fair value of the amount paid by the company for the asset at the time of purchase. Since the Company has a limited operating history, management determined to use par value as the value recognized for the transaction. Since the term of the initial license agreement is ten (10) years, the cost of the asset will be recognized on a straight line basis over the life of the agreement. In addition, each period the Company will evaluate the intangible asset for impairment. As of December 31, 2014 no impairment was deemed necessary.
Medicine Man Technologies Q1 10-Q
Disclosure: I have no economic interest in Medicine Man Technologies.
SEC Filings w/ Weed Pics! As Only Kaya Can
Kaya's SEC filings are quickly becoming some of my favorites to read! Pics below are from their recent 10-K.
Disclosure: I don't have any economic interest in Kaya Holdings.
Tuesday, May 17, 2016
MassRoots Q1 10-Q
MassRoots Q1 10-Q
Snip on user growth from the filing:
Snip on user growth from the filing:
User Growth and Web Traffic
From January 1, 2016 to May 16, 2016, MassRoots expanded its userbase from 725,000 to approximately 900,000. From January 1 to April 30, 2016, MassRoots’ web platform, which does not allow users to register, generated 2.26 million pageviews from 487,000 unique visitors. This resulted in MassRoots’ Alexa rating increasing from 209,848 as of December 31, 2015 to 148,282 as of May 2, 2016.
Disclosure: I have no shares in MassRoots, though we're buds, at least that is how they address me in emails. You can see my portfolio as of the middle of last month here. I'm long-term and not very active.
From January 1, 2016 to May 16, 2016, MassRoots expanded its userbase from 725,000 to approximately 900,000. From January 1 to April 30, 2016, MassRoots’ web platform, which does not allow users to register, generated 2.26 million pageviews from 487,000 unique visitors. This resulted in MassRoots’ Alexa rating increasing from 209,848 as of December 31, 2015 to 148,282 as of May 2, 2016.
Disclosure: I have no shares in MassRoots, though we're buds, at least that is how they address me in emails. You can see my portfolio as of the middle of last month here. I'm long-term and not very active.
Nemus Bioscience Q1 10-Q
Nemus Bioscience Q1 10-Q
The following text in italics are snips from the filing. Enjoy!
Nemus Bioscience, Inc. is a biopharmaceutical company that plans to develop and commercialize therapeutics from cannabinoids through a partnership with the University of Mississippi. The University of Mississippi ("UM") is federally permitted and licensed to cultivate cannabis for research and commercial purposes.
We are a biopharmaceutical company focused on the discovery, development, and the commercialization of cannabis-based therapeutics, or cannabinoids, through our partnership with the University of Mississippi, or UM. UM has held the only contract to cultivate cannabis for research purposes on behalf of the Federal Government since 1968, and it has significant expertise in cannabis cultivation and the extraction, separation, process and manufacture of cannabis extracts. We are currently UM's sole partner for the development and commercialization of drugs derived from cannabis extracts, or cannabinoids, and the realization of this partnership will depend on the successful navigation of the complex regulatory framework for the cultivation and handling of cannabis in the United States.
In July 2013, the Company entered into a Memorandum of Understanding (MOU) with UM to engage in joint research of extracting, manipulating, and studying cannabis in certain forms to develop intellectual property (IP) with the intention to create and commercialize therapeutic medicines. Nemus will own all IP developed solely by its employees and will jointly own all IP developed jointly between Nemus and UM employees. The term of the MOU agreement is five years and the parties agree to negotiate separate research agreements upon the identification of patentable technologies as well as any deemed to be a trade secret. The agreement may be terminated by either party with three months written notice to the other party.
Research and development expenses for the three months ended March 31, 2016 were $135,358 which consisted of contract R&D fees incurred by the University of Mississippi for the CIPN research project, process development fees incurred by the Company’s contract manufacturer, and consulting and professional services fees.
Research and development expenses for the three months ended March 31, 2015, were $37,200 which consisted of option fees and contract research and development fees incurred by UM to begin studies concerning the medical utility of cannabinoids as anti-infective therapeutics for MRSA.
On September 1, 2014, the Company signed an operating lease for laboratory and office space at the Innovation Hub, Insight Park located on the University of Mississippi campus. The lease term commenced on October 1, 2014 and expires on December 31, 2017. There are annual escalating rent provisions and two months of free rent in the agreement. The total cash payments over the life of the lease are divided by the total number of months in the lease period and the average rent will be charged to expense each month during the lease period. The monthly amount charged to rent expense is $9,267.
Disclosure: I have no shares in Nemus. You can see my portfolio as of the middle last month here. I'm not a very active trader.
The following text in italics are snips from the filing. Enjoy!
Nemus Bioscience, Inc. is a biopharmaceutical company that plans to develop and commercialize therapeutics from cannabinoids through a partnership with the University of Mississippi. The University of Mississippi ("UM") is federally permitted and licensed to cultivate cannabis for research and commercial purposes.
We are a biopharmaceutical company focused on the discovery, development, and the commercialization of cannabis-based therapeutics, or cannabinoids, through our partnership with the University of Mississippi, or UM. UM has held the only contract to cultivate cannabis for research purposes on behalf of the Federal Government since 1968, and it has significant expertise in cannabis cultivation and the extraction, separation, process and manufacture of cannabis extracts. We are currently UM's sole partner for the development and commercialization of drugs derived from cannabis extracts, or cannabinoids, and the realization of this partnership will depend on the successful navigation of the complex regulatory framework for the cultivation and handling of cannabis in the United States.
In July 2013, the Company entered into a Memorandum of Understanding (MOU) with UM to engage in joint research of extracting, manipulating, and studying cannabis in certain forms to develop intellectual property (IP) with the intention to create and commercialize therapeutic medicines. Nemus will own all IP developed solely by its employees and will jointly own all IP developed jointly between Nemus and UM employees. The term of the MOU agreement is five years and the parties agree to negotiate separate research agreements upon the identification of patentable technologies as well as any deemed to be a trade secret. The agreement may be terminated by either party with three months written notice to the other party.
Research and development expenses for the three months ended March 31, 2016 were $135,358 which consisted of contract R&D fees incurred by the University of Mississippi for the CIPN research project, process development fees incurred by the Company’s contract manufacturer, and consulting and professional services fees.
Research and development expenses for the three months ended March 31, 2015, were $37,200 which consisted of option fees and contract research and development fees incurred by UM to begin studies concerning the medical utility of cannabinoids as anti-infective therapeutics for MRSA.
On September 1, 2014, the Company signed an operating lease for laboratory and office space at the Innovation Hub, Insight Park located on the University of Mississippi campus. The lease term commenced on October 1, 2014 and expires on December 31, 2017. There are annual escalating rent provisions and two months of free rent in the agreement. The total cash payments over the life of the lease are divided by the total number of months in the lease period and the average rent will be charged to expense each month during the lease period. The monthly amount charged to rent expense is $9,267.
Disclosure: I have no shares in Nemus. You can see my portfolio as of the middle last month here. I'm not a very active trader.
After My Last Post, The Journalist Blocked Me On Twitter
On Twitter yesterday, SEC Filings on Weed! asked Debra Borchardt, a contributor to Forbes, "Any comment?" The question was in regard to a possible erroneous claim in a January piece she wrote for Forbes. Maybe I'm the only nerd to care about a piece of history like, "Who was the first publicly traded cannabis grower/processor/retailer?" Doubt it.
She could have approached this question about 100 ways, any one of which would probably be better than how she responded. She started with an ad hominem attack, then ignoring the possible errors in her story I was blocked from interacting with her on Twitter.
Facts don't matter in some journalism apparently. It's much easier to cut and paste a press release than actually check the facts. People will be coming across this misinformation online for years now, unless a correction was made like in this MJ Biz Daily article.
Go on about your business, who cares about an accurate history of the cannabis industry. Derek Peterson, CEO of Terra Tech made the claim, but at this point we expect cannabis companies to pump up the story as much as possible.
What is the media's role here?
Disclosure: I have no position in any firm mentioned in this post. This is still my portfolio.
She could have approached this question about 100 ways, any one of which would probably be better than how she responded. She started with an ad hominem attack, then ignoring the possible errors in her story I was blocked from interacting with her on Twitter.
Facts don't matter in some journalism apparently. It's much easier to cut and paste a press release than actually check the facts. People will be coming across this misinformation online for years now, unless a correction was made like in this MJ Biz Daily article.
Go on about your business, who cares about an accurate history of the cannabis industry. Derek Peterson, CEO of Terra Tech made the claim, but at this point we expect cannabis companies to pump up the story as much as possible.
What is the media's role here?
Disclosure: I have no position in any firm mentioned in this post. This is still my portfolio.
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