- MJNA has quietly prepared to spin out a subsidiary, Canchew Biotechnologies.
- Canchew Biotechnologies has failed to gain traction with its lead product.
- The transaction is unlikely to create value for MJNA shareholders.
Medical Marijuana, Inc. (OTCPK:MJNA) hasn't said a word about it, but a careful read of the SEC filings of Axim International (OTCQB:AXIM) indicates that MJNA will soon spin out its stake in a joint venture. MJNA's operating results have been lackluster, and the company likely feels pressured to generate additional non-operating revenues in order to avoid the appearance of declining fundamentals. MJNA reported 2013 net income of $24.6mm, but over 99% of these "profits", the vast majority of which is illiquid stock that has never been sold, was from the CannaVest (OTCQB:CANV) transaction (source: annual disclosure).