Marijuana Company of America CEO's Year-End Overview and Outlook for 2020
ESCONDIDO, Calif., Dec. 18, 2019 /PRNewswire/ -- Marijuana Company of America, Inc. ("MCOA" or the "Company") (OTCQB: MCOA), an innovative hemp and cannabis corporation, is pleased to announce the CEO's overview of the highlights of the Company's performance in 2019 and optimistic outlook for fiscal year 2020.
The Company is excited to announce that it is expecting to close 2019 with gross sales of approximately $650,000 compared to sales of $252,135 in 2018. This 258% increase in sales year over year is a direct result of the Company's successful marketing efforts in Europe and growth of its affiliate base in the US.
Jesus Quintero, the Company's Chief Executive and President, said, "MCOA has never been better positioned to take advantage of the numerous opportunities in the cannabis sector than it is now. We believe there is going to be a significant shakeup in the cannabis sector in 2020, and MCOA is prepared to take advantage of the numerous opportunities that will be available. We are going to be focused on streamlining our core business operations, increasing sales, and pursuing some M&A activity with distressed assets that fit our portfolio parameters. In 2020, our shareholders will notice radical change at MCOA. The Company will have an entirely different culture, new leadership, and new business models and make strategic acquisitions as we position ourselves for what we expect will be a breakout year – it's a new day at MCOA!"
The Company was also able to strengthen its margins in Q4 by reducing production costs, finding new manufactures/suppliers, and overhauling its overall product sales approach. These significant changes will be more visible and are expected to positively impact the Company's financial position in 2020. One of the most significant changes the Company is in the process of implementing is diversifying away from its focus on affiliate marketing for the distribution of both its hempSMART and Viva Buds brands. In 2020, MCOA will be introducing several new direct to consumer sales strategies that will include e-commerce, retail stores, and seasoned distribution channels, as well as launching sales programs in foreign countries that are just opening up to CBD and CBD products.
It's no secret that the entire cannabis sector experienced a significant correction during the last two quarters of 2019. This sell-off pressure and overall market correction, together with our corporate restructuring in Q4, led MCOA's market value to be undervalued in management's opinion. Consequently, the Company is committed to growing sales and implementing policies to help mitigate legacy issues related to market dilution. In 2020, under new management, the Company will actively participate in several significant industry trade shows and be actively engaged in reaching out to establish relationships with strategic partners, acquisition targets, and investors. The Company will also be implementing new marketing tactics for its products. Additionally, as part of Don Steinberg's resignation as founding CEO and President in early December, Mr. Steinberg entered a lock and leak out agreement that will limit the frequency and amount of stock he can sell.
The U.S. CBD market is saturated with competition and numerous brands. MCOA is, therefore, looking to gain significant market position by being an early entrant in emerging CBD markets in Germany, Spain, Netherlands, Latin America, Korea, Japan, and India. The Company's compliance team is reviewing the stringent standards in each of these countries to ensure that hempSMART products are compliant with local laws so that it can be one of the first established CBD brands in each of these countries.
It's exciting to see the new regulatory reform in the hemp and marijuana industry. We expect that 2020 will be a breakout year for cannabis legalization and reform. MCOA is without a doubt positioned as a leader in these industries and positioned to capitalize exponentially with any legal reform in the cannabis industry. Major League Baseball (MLB) recently changed its policy on allowing players to use cannabis products as an alternative pain management solution. This is just one of many reputable sports leagues that MCOA expects will relax its rules in 2020.
We are very excited about the improvements in our retail cannabis delivery business, Viva Buds. The Company made some changes to significantly reduce its overhead while, at the same time, increasing its sales by introducing WeedMaps in its marketing strategy.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name "hempSMART™" that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) joint ventures and acquisitions of business entities engaged in the growth and sale of hemp and cannabis products in jurisdictions where cultivation is legal; and (4) the expansion of its business into ancillary areas as market opportunities in this segment mature and develop.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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SOURCE Marijuana Company of America
Released December 18, 2019