Marijuana Company of America’s Overview of 2017 Highlights
ESCONDIDO, Calif., Jan. 03, 2018 (GLOBE NEWSWIRE) -- MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC:MCOA), an innovative hemp and cannabis corporation, is pleased to announce its 2017 year-end review to its valued shareholders and interested parties.
Donald Steinberg, CEO of MCOA, said: “I am the founder of multiple startups, including Medical Marijuana Inc. (OTC:MJNA), which has a market cap of over 300 million dollars. I am aware of the challenges and opportunities these endeavors present, and the need for a strong foundation to build upon. Having experience in the structuring, development and operations of large global marketing companies in various industries, I believe Marijuana Company of America and its subsidiary hempSMART are poised to deliver significant value to our shareholders based on the foundations and accomplishments made in the past year.
The Company has fulfilled its promise to its shareholders by becoming an audited and fully transparent reporting company with the Securities and Exchange Commission. We are participating in the cannabis space with our leasing operation in Washington. The hempSMART team has developed a line of products that can be viewed at www.hempsmart.com. We completed joint hemp trials in New Brunswick, Canada with Global Hemp Group, Inc. in 2017, and we expect to be starting commercial production in Spring 2018. There are a number of other projects we are completing due diligence on. I am thankful to the teams at MCOA and hempSMART for their accomplishments and due diligence in working through these various projects. We will continue to build upon the diligent work of the past year as we continue to move forward and execute our business plan.”
Updates on hempSMART Products
The Company’s wholly owned subsidiary, hempSMART, Inc., distributes industrial hemp based CBD wellness products via network marketing. In September 2017, the Company completely revamped its website and network marketing platform to provide customers and affiliates with the necessary tools needed to become successful in the expanding $1.9 Trillion Wellness Industry. The Company has successfully filed a patent application with the U.S Patent and Trademark Office for full patent protection on its proprietary CBD formulation: “hempSMART™ Brain.” Also in 2017, hempSMART released two new products: “hempSMART™ Full Spectrum Drops” (Orange, Mint, Lemon, and Strawberry) and “hempSMART™ Pain Capsules.” Several more products are in development and the Company anticipates their release in Q1 2018.
Filing Form 10 with SEC and Completing Audit
MCOA became a fully reporting company by filing a Form 10 with the SEC in May of 2017. A PCOAB registered audit firm (L & L CPAs PA) completed a two-year audit of the Company’s 2015 and 2016 financial statements. This is an integral step to qualifying the Company to uplist its trading tier with OTC Markets to the OTCQB. This is an important step in helping MCOA raise necessary capital to fund it projects and expand operations, as well as provide more transparent and reliable information to investors. Currently, the Company is in the process of preparing and filing an S-1 registration statement with the SEC in order to raise the necessary capital to fund its aggressive growth goals for 2018. Due to the inherent legal complexity of the cannabis industry, it took considerable effort to address SEC comments pertaining to disclosures of our business and corresponding products. We believe there is a great deal of shareholder value by the Company distinguishing itself from a majority of cannabis public companies that elect not to be fully reporting SEC filers.
Cultivation Joint Venture in Washington State
In Q1 2017, MCOA entered into a joint venture partnership with Bougainville Ventures, Inc. (“BV”), who plans to construct a 30,000 sq. ft. greenhouse cultivation facility in Oroville, WA. The facility will accommodate a Tier-3 production and processing I-502 tenant with years of experience in cannabis cultivation. In Q4 of 2017, MCOA completed financing of $800,000 in cash and 15 million shares of the Company’s common stock to complete the amended terms of the agreement. The delivery of the first pre-designed greenhouses, with full tracking and reporting protocols has arrived and completed construction of the six greenhouses, totaling in a one-acre footprint, is expected in Q1 2018. This joint venture project is solely for the purpose of cultivation and processing of legal marijuana within the state of Washington only and not beyond its borders. The Company will lease the turnkey property to the licensed tenant, thus acting solely as a landlord. As of December 31, 2017, the first greenhouse was purchased and in the process of being constructed.
JV with Global Hemp Group in Canada
In Q3 2017, MCOA and Global Hemp Group, Inc. (CSE:GHG) (OTC:GBHPF) entered into a joint venture partnership to develop commercial hemp production and processing in New Brunswick, Canada. MCOA and GHG have now completed the first phase of hemp trials, receiving research support from the Collége Communautaire du Nouveau Brunswick (CCNB). MCOA is granted a Right of First Refusal as the primary recipient of any raw materials produced from the project, which we expect will harvest its first commercial crop of 125 acres in Q4 2018.
MoneyTrac Technologies Investment
In July 2017, MCOA completed an investment of $250,000 into MoneyTrac Technology, Inc. (“MTT”), a subsidiary of Global Payout, Inc. (OTC:GOHE) in exchange for 15% equity position in the company, to help establish and market MTT as an alternative banking solution for the Cannabis industry. MTT currently has the ability to integrate and streamline electronic payment processing such as E-wallet, mobile applications, debit cards, and credit cards. Currently, MoneyTrac Technology has strategic partnerships with top cannabis services such as GreenRush, BlazeNow, High Grade Management Group, and PotSaver, which was a majority acquisition last October.
At the end of Q4, the Company announced an investment of $100,000 for a 25% equity stake in Convenient Hemp Mart, LLC’s “BeniHemp” branded products to target convenience stores for CBD product distribution. BeniHemp products will include topicals, tinctures, and edibles conveniently packaged in 1-day, 2-day, and 30-day supplies. The target market is convenience stores, smoke shops, gas stations and similar small retail businesses. The expectation is that there will be a full launch and website online in January 2018.
Space Cowboys, Inc.
In October 2017, MCOA and GHG (“the Companies”) jointly entered into a letter of intent (LOI) with Space Cowboys, Inc. (“Space Cowboys”). Pursuant to the terms of the LOI, the Companies intended to invest US$2.5 Million in exchange for a 25% equity interest in Space Cowboys. However, the Companies are unable to complete due diligence and will not be moving forward with this project.
Joint Venture in Adelanto, CA
In March, MCOA entered into a joint venture agreement with GateC Research Inc. (“GCR”) for the purpose of developing a turnkey cultivation facility in Adelanto, California for leasing to GCR which owns a local permit for cultivation. GCR and MCOA are in the process of identifying and securing property to facilitate the project. MCOA will invest cash and stock to complete the agreement. With the recent legalization of cannabis for recreational use on January 1, 2018 in California, MCOA expects to focus its attention on actualizing this opportunity in California. This JV project is solely for the purpose of cultivation of legal marijuana within the state of California and not beyond its borders. The Company will act solely as a landlord in this JV.
Also in 2017, MCOA engaged NetworkNewsWire (“NNW”) for the Company’s corporate communication solutions. NNW is a multifaceted financial news and publishing company that delivers a new generation of social communication solutions, news aggregation and syndication, and enhanced news release services. NNW's strategies help public and private organizations find their voice and build market visibility. As part of the Client-Partner relationship with MCOA, NNW will leverage its investor-based distribution network of over 5,000 key syndication outlets, various newsletters, social media channels, blogs, and other outreach tools to generate greater brand awareness for the Company.
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) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About MoneyTrac Technology
MoneyTrac Technology, Inc. is a pioneer in offering a full-service solution for alternative banking and electronic financial solutions and provides all aspects of financial technology including E-Wallet and mobile apps services for businesses and companies in various "high-risk" industries. MoneyTrac's technology platform allows for its clients to access their financial information from anywhere in the world, in addition to providing tracking and compliance to help them manage and control the flow of all revenue through their business.
About Global Hemp Group Inc.
Global Hemp Group ("GHG") is a publicly traded company founded in 2012, headquartered in British Columbia, Canada with base operations in Montreal and Southern California. The Company is focused on the production and processing of hemp, and collaboration with companies that will enable GHG to develop and implement the Hemp Agro-Industrial Zone concept. Through partnerships, joint ventures and acquisitions, the Company will capture cash flow, revenues, and establish a greater collective valuation.
About Bougainville Ventures, Inc.
Bougainville Ventures Inc. is in the business of investing in high grow companies and industries that lease land, equipment and other growing infrastructure to licensed marijuana producers and luxury crop growers. Bougainville itself is not a licensed marijuana grower or retailer but instead focuses on providing capital to companies which act as landlords and equipment leasing companies to licensed marijuana producers and luxury crop growers. The Company is in the process of being listed on the CSE in Canada.
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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Marijuana Company of America, Inc.
Released January 3, 2018