SAN DIEGO, Aug. 7, 2012 /PRNewswire/ -- Medical Marijuana Inc. (OTC: MJNA) a leading hemp industry innovator, is pleased to inform its shareholders that it has recently finalized a corporate contract to produce and deliver its Hemp Stalk Cannabidiol (CBD) Oil to a leading agricultural raw ingredients production company. This agreement, MJNA's and PhytoSPHERE Systems largest contract to date, calls for the production and delivery of 300 Kilograms of the CBD Essential Oil, valued at $7,500,000 USD.
CBD Essential Oil Contract Highlights
The term of the contract is twelve (12) months and calls for the production and delivery of 300 Kilograms of the CBD Essential Oil at a price of $25,000 per kilogram, or $7.5 million in total contract value.
The Industrial Hemp necessary to produce the CBD Oil has been planted at an undisclosed licensed location in a country that allows legal Industrial Hemp production. Harvesting of the crop is expected mid-October 2012. PhytoSPHERE anticipates beginning production of the CBD Oil in November using Medical Marijuana Inc.'s newest extraction technology. This technology assures the highest concentration of CBD Oil extraction along with the highest level of purity and consistency in the product.
Contract terms state that PhytoSPHERE Systems will receive a ten percent (10%) non-refundable deposit, which has already been paid, along with three monthly non-refundable five percent (5%) production milestone payments, the first of which will be paid in August 2012. The balance or seventy five percent (75%) of the contract will be paid over the remaining 9 months of the agreement once delivery of the product commences.
Further details of the terms of the contract are prohibited due to the non-disclosure provisions in the agreement. However, MJNA can confirm that the CBD Essential Oil will be infused into a variety of health-and-wellness products that will be offered on the over-the-counter marketplace. MJNA has also previously announced that the new line of Dixie X and CanChew gum products, infused with high concentrations of CBD, will be available on the over-the-counter market starting September 15th 2012. Residents of Colorado can obtain many of these products at retail locations throughout the State – and soon retail locations will carry the line in Arizona, California and Washington, DC. On-line purchase will be available September 15th through various licensed websites.
"Today our Company has taken a huge leap forward that has been literally years in the making. This large contract shows that our efforts in developing our business strategies have yielded a major milestone accomplishment for Medical Marijuana Inc. and our base of loyal shareholders. While this might be our largest contract to date we fully expect, once the benefits of CBD's are more widely known, that other large accounts will look to partner with PhytoSPHERE and MJNA. " stated Michael Llamas, president of Medical Marijuana Inc.
Further he went on to add: "Healthcare professionals within the industry know the value of CBD, as many long-time industry professionals have seen direct benefits with many of their patients. Combined with the safety profile, many new corporate health and wellness accounts are taking notice – soon I believe hemp based Cannabidiol (CBD) may be the new buzzword in the healthcare industry. Individuals today are seeking a combination of traditional and complementary methods to health and wellness, but there is a gap between the two approaches. Our hope is that our new CBD Essential Oil and related products will serve to bridge this healthcare gap."
About Medical Marijuana, Inc.
Our mission is to be the premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate and purchase value-added companies and products, while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, develop environmentally friendly, economically sustainable businesses, while increasing shareholder value.
Medical Marijuana Inc. does not grow, sell or distribute any substances that violate United States Law or the controlled substance act.
For more information, please visit the company's website at: www.MedicalMarijuanaInc.com
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.
Medical Marijuana, Inc.
Toll Free: 888-OTC-MJNA (888-682-6562)
Investor Relations Contact:
Stuart T. Smith
Email: [email protected]
SOURCE Medical Marijuana Inc.