I first learned of Medical Marijuana, Inc. (MJNA.PK) in February, when anonymous, self-proclaimed short "Infitialis" called the company a "fraud heaped on top of folly." Fascinated by the story, I spent that weekend learning more about the company and other marijuana-related names, quickly concluding that the stocks were in a bubble. I have followed up with a series of articles that question the company's financials, most recently describing how Medical Marijuana, Inc. appears to have used very aggressive revenue recognition in the fourth quarter last year.
As I continue to dig deeper to better understand this company's history, I am becoming more confident that the management team has indeed been dishonest. While Infitialis raised a lot of issues about the backgrounds of some of the people involved, the article failed to point to what may be the single most alarming aspect of the story: Hemp Deposit & Distribution Corp. (HDDC) apparently misled investors in its promise to deliver assets to the company in exchange for 260 million shares and control of the company two years ago.
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