Carlsbad, CA / June 6, 2014 / To recap an exciting Thursday trading session -- the Dow rose 0.6% closing at a record high of 16,836.11 with an intraday high of 16,845.81; while the S&P 500 also gained 0.6%, posting an all-time high of 1940.46 and intraday high of 1941.74. The Nasdaq composite index gained 1.1% with an added 44.58 points closing at 4296.23, well below the all time high of 5,048.62.
The Marijuana Index remained flat, closing Thursday at 3.23 -- leaving many investors to wonder how a recent congressional decision might eventually impact the sector.
U.S. House of Representatives Peels the Proverbial Band-Aid
Make no mistake, this is big news for marijuana (and possibly marijuana equities in the long-term). "Congress is officially pulling out of the war on medical marijuana patients and providers," said Dan Riffle, director of federal policies for the Marijuana Policy Project.
Last week, a seemingly overlooked announcement emerged from Washington DC: the U.S. House of Representatives voted for an end to all DEA medical cannabis raids. Technically speaking, the U.S. House of Representatives voted on an amendment to a bill for the Department of Justice, which controls the DEA and related resources. Once introduced as the Hinchey-Rohrabacher amendment, the bill is now cosponsored by Congressmen Sam Farr (D-CA) and Dana Rohrabacher (R-CA).
Still requiring a Democratic U.S. Senate ratification, approval from two regulatory committees, and President Obama's signature -- some feel the potential change comes too little, too late. Others believe the legal logic puts the federal government in a position which "toes the line of constitutionality" wherein the DOJ becomes the arbiter of state legislation, something which goes against the "ideals and the common practice of more than 200 years of American federalism."
In any event, cannabis is firmly at the forefront of every branch of government and has just scratched the surface of financial markets -- a natural progression for the nascent industry. Widely considered an issue championed by democrats, it should be noted that Congressman Dana Rohrabacher (a republican) has been at the forefront of the marijuana movement for years. While many industry insiders are skeptical as to what this the passage means, a spirit of cautious optimism should prevail. Never before has cannabis seen more favor on the federal level, period.
According to a Wikipedia page for the Hinchey-Rohrabacher amendment, the amendment in various forms has been voted on by the House a full seven times. Never garnering more than 165 affirmative "ayes" previously, it passed last week with a staggering 219 votes in favor. These results, combined with recent advances toward definitive banking regulations and emerging capital markets, could go a long way toward restoring investor sentiment in the sector.
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Cannabis Science Reports Strongest Financial Position in Company History
Widely regarded as one of the "founders" of cannabis equities -- Cannabis Science (OTCQB: CBIS) announced positive news this week which helped shares gain more than 10% on Thursday, closing at $0.117 per share on strong volume of more than 15 million shares. The company is engaged in research and development of cannabinoid-based therapies.
Cannabis Science's CFO Robert Kane announced, "Cannabis Science is in the strongest financial position in the Company's history. With a positive cash position after the successful capital raise earlier this year, the Company has the ability to conduct basic science research and to begin new cannabis-drug development programs. In fact, this has begun and our development team is analyzing proprietary data right now."
Learn More about Cannabis Science by Visiting the Issuer Website
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Mentor Capital Announces First Quarter Revenues
Per a series of press releases this week, Mentor Capital (OTC Pink: MNTR) issued updates as the company deploys its intended acquisition and integration strategy of cannabis companies.
The most recent release states "on an unaudited basis the company, as of March 31, 2014, reports that it holds $1,574,783 in cash, with consolidated assets of $14,158,030 and has common equity of $4,598,826. The quarterly revenues were $534,889 ($2,139,556 annualized rate) and it operated at a net loss of $56,171 or approximately a loss of one-half cent per share across 10,181,062 average diluted shares outstanding during the first quarter."
The company also announced this week the funding of Bhang Financial, which intends to provide credit card processing for the cannabis industry, as well as $100K in start-up capital for Nevada Cannabis Ventures -- a subsidiary which intends to deploy capital in Nevada-based marijuana businesses.
Mentor also detailed team additions including a California DOJ Senior Legal Analyst & CPA Director of Audit Services. Any move to bolster financial accountability in light of recent regulatory actions should be well-received, and this could be the first step toward Mentor Capital becoming a fully-reporting (and audited) company.
Learn More About Mentor Capital by Visiting the Issuer Website
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GrowBLOX Sciences CEO Issues Shareholder Update; Raises $5,000,000 via Private Placement
GrowBLOX Sciences, Inc. (OTCQB: GBLX), a biotechnology and research company whose mission is to grow and provide high-grade pharmaceutical cannabis to the medical marijuana industry and perfect the cultivation process, issued a series of updates this week which were summarized today in a letter to shareholders.
Per the release, the first GrowBLOX cultivation chamber has come off of the production line -- the CEO Craig Ellins also said "we (GrowBLOX) are not growing from seeds, clippings or clones. Our technology will allow us to grow from tissue, something that, to our knowledge, no other medical marijuana company is doing. We are in the process of hiring a vast assortment of scientists, who collectively hold various Ph.D.'s and patent portfolios." The company also announced progress toward its Nevada medical marijuana license applications, as well as the formation of a subsidiary in Puerto Rico which is intended to position GrowBLOX in a new jurisdiction currently weighing medical legalization. The company website details more about their plans and product.
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