Medical Marijuana Inc. Makes $6.8M Deal for Dixie BotanicalsTuesday, July 29, 2014
Medical Marijuana Inc., a San Diego publicly traded company (OTC: MJNA) said it officially assumes control of Dixie Botanicals, a Denver based business that makes cannabidiols (CBD), the main component in a variety of hemp oil products, in a transaction that will likely increase its staff.
“This transaction will certainly result in our company adding revenue, and will add jobs, but we’re not certain as yet how many,” said Medical Marijuana spokesman Andrew Hard.
In a deal valued at $6.8 million, Medical Marijuana takes over all of the CBD-based line of products and the brand, Dixie Botanicals, including intellectual property and marketing rights. Seller Dixie Holdings LLC of Denver retains all the rights to its THC-based line of products that are legal in Colorado.
Medical Marijuana recently leased four buildings in Poway where it will house some administrative and distribution operations. It also has an executive office in La Jolla and Clairemont. All told, it has 52 full- and part-time employees here, Hard said.
For the 2013 fiscal year, Medical Marijuana reported total revenue of $3.4 million. Dixie Botanicals revenue last year was about $1.5 million.
Shares of MJNA closed at 18 cents July 29, and have ranged from 9 cents to 48 cents over the past 52 weeks.