Back on March 20th, 2014 we shared that MJNA and LVVV signed a memorandum of understanding to create the joint venture of HempWire, LLC. Earlier today, the companies announced the official launch of HempWire.
Under the agreement MJNA and LVVV will split the net profits equally. HempWire will offer functional foods (non-pyschoactive CBD-rich hemp oil products). The agreement will have LiveWire purchasing hemp oil products from HempMedsPX, a Medical Marijuana, Inc. company, and producing a “CBD-rich hemp oil taffy-like consistency chewable square” – Globe Newswire. HempWire will use the existing retail, wholesale and distribution networks of Medical Marijuana, Inc. and LiveWire.
“Both companies are excited about the partnership … We chose LiveWire as an established manufacturer that can provide our customers with the same consistency and quality that they have come to expect from our company. To start, HempWire will bring the first-ever CBD-rich hemp oil energy square chew to the market, with more products to come.”
– Michelle Sides, COO of Medical Marijuana Inc.
HempWire allows Medical Marijuana Inc. to enter into the “functional food” market, which in the worldwide market is valued at $221.58 billion. – Globe Newswire
“This joint venture is an important milestone for LiveWire. By partnering with the leader in this space, together we will offer the best tasting, most precise functional foods in this industry.”
– Bill Hodson, CEO of LiveWire Ergogenics, Inc.
What does this news mean for MJNA and LVVV? Since the last analysis of MJNA and LVVV (see here) the two companies have seen a minor dip in stock value, but both have seen great opportunities in day trading (both have seen 20% single day changes). I still believe both MJNA and LVVV should see long term growth with great opportunities for shorter plays. The entire marijuana sector falls into category, especially with the number of states leaning and working towards the legalization of marijuana (both on the medical and recreation level). The launch of HempWire will create an increase in the number of shares changing hands, but will ultimately effect the price per share when the time comes for the 3rd and 4th quarter earning reports. Like I said on the previous analysis; marijuana is still illegal under federal law, causing the entire medical/legal marijuana sector a major high risk/high reward play.
Rosenberg (OTC Daily)