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(USA) Medical Marijuana Inc. may assist Californian medical marijuana collectives

MARINA DEL REY, CA — (Marketwire) — 08/25/09 — Medical Marijuana, Inc. (PINKSHEETS: MJNA) offers tracking and management solutions that keep collectives within the boundaries of CA Proposition 215 and SB 420 in regard to supply side and distribution.

medical marijuana incAccording to The Metropolitan News-Enterprise, on August 18, 2009, California’s Fourth District Court of Appeals reinstated felony charges against Stacy Hochanadel, John Campbell and John Bednar, the operators of CannaHelp, a medical marijuana dispensary located in Riverside County, CA.

The decision that a Superior Court judge erred in ruling that CannaHelp was a “primary caregiver” under Proposition 215 gave prosecutors a new opportunity to convict the defendants.

Judge Gilbert Nares explained that it is not sufficient for a person or entity to be designated a primary caregiver by an authorized medical marijuana user. There must be an independent relationship between the parties aside from and preceding the supplying of medical marijuana. “There is no evidence that CannaHelp or the defendants had such a relationship with the customers who purchased marijuana from them,” Nares wrote. “A storefront dispensary that merely provides walk-in customers with medical marijuana does not provide the type of ‘consistent’ relationship necessary to achieve primary caregiver status.”

A collective, Nares explained, cannot operate for profit and cannot sell marijuana obtained from other than its own membership. And, he continued, the fact that CannaHelp operated on a cash-only basis gave detectives the probable cause to believe that CannaHelp was a criminal enterprise.


Medical Marijuana Inc.’s Turnkey Collective Solution ensures that collectives operate within the guidelines of all laws and regulations regarding the tracking of the marijuana from grow cycle to final distribution. By employing Medical Marijuana Inc.’s closed loop tracking system, it can be shown to authorities and collectives alike that the source of their supply was an active member of the collective. Medical Marijuana, Inc.’s Regulatory Module provides officials with a comprehensive reporting tool that allows them to remotely audit the industry in real time to ensure regulations are being properly followed. This audit function can be performed online and remotely from the regulator’s desktop anywhere in the world, making the process more efficient and cost effective for governments to monitor and regulate the industry. Medical Marijuana, Inc. believes that tools to regulate the industry and collect tax revenue are necessary to gain nationwide acceptance and legalization of medical marijuana. Further, Medical Marijuana’s Tax Remittance Platform could not only cost-effectively implement the necessary infrastructure to collect on every sale made within city limits by licensed collectives and collect those taxes on a daily basis, but eliminate the cash problem by using a tax remittance, credit, debit, or proprietary card. The POS system automatically recognizes the collective’s tax ID number, state and local tax rates and then provides Automated Clearing House settlement of the taxes and routes the amount to the City’s appointed financial institution. Taxes can be collected on a daily basis, providing an economic windfall for the city of Oakland and any other municipality recognizing the advantages of this model.

Tax Collection

The Stored Value Platform System will provide verifiable solutions to manage the difficult task of revenue and taxation collection. The customers of the dispensary are issued a plastic debit card or medical revenue card. The ease of access to certifiably secure transactions lessens the risk of loss at each level of the transaction.

Internal Management

All collectives/dispensaries in the U.S. are cash businesses. This presents a number of challenges. Dispensary owners risk employee theft and possible competition for sales with unsupervised employees. Our stored value system also eliminates the legal and practical risks of carrying cash.


Medical Marijuana, Inc. is developing a suite of solutions to deliver an efficient and secure infrastructure for the Medical Marijuana Industry that will provide the tools to industry operators to effectively manage their businesses with the confidence that they are in full compliance.


Medical Marijuana, Inc. is the first public company to recognize the vast and unequaled opportunities that exist in the rapidly expanding medical marijuana industry. The scientific recognition of marijuana as a powerful medicine, and as an effective, non-narcotic pain reliever, has brought legalized marijuana use to the forefront of mainstream discussion thus opening the door for safe and lucrative investment opportunities.

Medical Marijuana, Inc. has developed a suite of turnkey business and management solutions for the fledgling medical marijuana collective industry in California. The growing number of other states that have legalized the use of medical marijuana have yet to establish a system for the legalized commercial production and sale of the medicine. These regions are also strong potential targets for Medical Marijuana, Inc.’s products and services down the road. It is likely that other states will follow California’s basic lead as the Golden State more specifically defines the regulations and protocol that are shaping the supply-side of the legal medical marijuana sector.


This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.

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