What is MarijuanaStocks.com
MarijuanaStocks.com is an online publication that reports on the cannabis industry and Marijuana Stocks. On a daily basis, we distribute news and articles on companies within the pot stock sector.
MarijuanaStocks.com is also home to Jason Spatafora, aka “The Wolf of Weed Street”. Love him or hate him, we believe he has proven over the years to know more about the cannabis space and the public companies within it than anyone else. “The Wolf” and MarijuanaStocks.com have produced winning and transparent combinations for the past 6 years.
The 3000lbs or if You’re from Canada 1360.77kg Elephant in the Room
While MarijuanaStocks.com is a business and the goal of any business is to make money, it takes substantial time and money to produce our high-quality online publication…So… How do we make money? We receive cash payments and sometimes restricted stock from our public company clients, also referred to as “Rule 144 Stock,” to market and advertise them to our audience. We strictly adhere to applicable securities laws by scrupulously disclosing our compensation throughout our website and in our outward communications.
In return for our marketing and advertising services, we charge anywhere from $25,000 per month for distribution of content and news all the way upward to $500,000 per month for large scale media campaigns and focus articles that highlight the company’s strengths.
The sheer size of the budgets we work with is often the 1st thing people will point out in what is normally a negative light, see image below:
The Unexpected Truth
Large scale marketing, advertising, and media buying campaigns are EXPENSIVE, VERY, VERY EXPENSIVE. Whether a company is private or public, getting your company in front of people who visit sites like, MarketWatch.com, Barrons.com or WallStreetJournal.com costs real and substantial money. To further demonstrate this point, we have included a screenshot of an actual proposal for media from The Wall Street Journal Digital Network provided to us on a previous campaign.
While we would love to “become a quarter mill richer” (as the previously shown tweet stated), that is simply not the case – we commit ourselves to spend the necessary dollars to efficiently and effectively distribute news and content on behalf of our public company clients while aiming at the same time to make a 15%-20% profit on the total spend throughout the life of a campaign.
For those that don’t know, we share an almost identical business model with sites like, TheStreet.com, The Motley Fool, Barrons.com, MarketWatch.com, Bloomberg News Network (BNN) and many, many more!
Now I Know What You’re Thinking…
“Ok I fully understand your so-called business model but all you do is pump and dumps.” An example of this kind of thinking can be seen in another tweet below:
According to the SEC’s website, a “Pump-and-dump” scheme involve the touting of a company’s stock (typically small, so-called “microcap” companies) through false and misleading statements to the marketplace. These false claims could be made on social media such as Facebook and Twitter, as well as on bulletin boards and chat rooms. Pump-and-dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have “inside” information about an impending development or to use an “infallible” combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is “pumped” up by the buying frenzy they create. Once these fraudsters “dump” their shares and stop hyping the stock, the price typically falls, and investors lose their money.
Let’s Break This Down:
- “Pump-and-dump” schemes involve the touting of a company’s stock (typically small, so-called “microcap” companies) through false and misleading statements to the marketplace.
- We give full editorial control to every company we work with. This means that at no point are we ever distributing any material that an authorized “C-Level” employee has not signed off on.
- Pump-and-dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down.
- While it is true, we are provided with inside information, we also sign a non-disclosure with the company and NEVER trade
- We have never nor will we ever tell anyone to BUY and or SELL any security. There is no “wink, wink” or “nod, nod”. We are not financial advisors and never claim to be. What you buy or sell is entirely up to you.
- Often the promoters will claim to have “inside” information about an impending development.
- the stocks we are marketing & NEVER disclose that inside information to anyone ever, for any reason.
- In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is “pumped” up by the buying frenzy they create.
- While it is true company insiders can and sometimes do gain from a marketing campaign, it is the responsibility of that insider to properly disclose the sale of their stock. This is another area of due diligence we perform — if we sense that an insider is selling shares and not disclosing and or using some other scheme in which to sell shares, we will immediately cease working with that company and notify the company that our engagement is over.
- If we ever are in a situation wherein we are working with a company that we hold a stock position with via restricted stock (Rule 144), we will not only disclaim this but we will also submit a 10b-5 selling plan to our broker.
- Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks in accord with insider trading laws. … Both the seller and the broker making the sales must not have access to any material nonpublic information (MNPI)
- Once these fraudsters “dump” their shares and stop hyping the stock, the price typically falls, and investors lose their money.
- If we work with a company that is illiquid and then becomes liquid as we are working with them, there is a VERY GOOD CHANCE that when we are done working with them, their newfound liquidity will cease and whatever raise in price per share will fall.
This can, however, be minimized if the company works diligently to reach milestones while simultaneously having a strong, transparent and compliant investor relations strategy.
Clearly, our business model and what we do in practice does not fit the mold of a “Pump & Dump”.
What is a Connect the Dots piece…
It all started with an idea. We wanted to have a segment of MarijuanaStocks.com that stood alone. Something that was reserved for companies we felt had the best chance for success. We wanted our subscribers to see what we saw in these companies. We wanted people to Connect the Dots.
Connect the Dots (CTD) articles were never meant to be 1 day or 1 week or even 1 month “momentum-based stock alerts”. When we released a CTD article we had always meant it to be the beginning of long-term coverage of a company we felt good about.
It’s Important to Remember
Not including our most recent Connect the Dots article we have alerted 9 previous CTD articles. On average from the time we initiate coverage until the company sees a new high is about 3.5 months.
(this is based off historical data, we make no guarantee any profiled companies will see new highs in price per share)
Again…the purpose of our CTD articles was never to be a quick pop and flop… It was meant for long term coverage for companies we felt good about.
Our Current Connect the Dots Article / Coverage
MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) Full Article Here
Here are 5 Reasons We Like MustGrow:
- The market for organic food biopesticides alone is projected to become a $323 billion market in less than 5 years.
- MustGrow has created a formulation that addresses all factors of sought after, biopesticides including quality, safety, yield, and scalability.
- The opportunity that additional industries present (IE. tobacco and cannabis) could offer a first-mover advantage for biopesticides.
- MustGrow has a stacked leadership team with a decade upon decades of experience in every subsector a company like this should be in.
- The current share structure lends itself as a positive for anyone looking for a public company set up for strategic growth and competitiveness in the public sector.
1-4 Look Good but #5 CAN NOT BE RIGHT!
On 2/23 a newsletter was sent by a fleeting website run by a failed “cannabis professional” that we regard as an unstable and unhinged “adult man child” in what we can only describe as a desperate attempt for content and to stay relevant, falsely stated:
Yes, if you selectively screenshot parts of a prospectus, you can easily paint any narrative you want. However, if you do even a little bit of digging, then the truth comes out. The screenshots being sent and floating around are implying that our recent CTD article was “derailed” by 14m+ shares at $0.015. This couldn’t be further from the truth.
Here is The Truth:
There was an approx. $216,000 PP done at $0.015. MustGrow management and board participated for 51.5% of the offering. The rest primarily went to the bankers at Industrial Alliance (based in Saskatchewan, CA) that helped structure the go public offering.
Post-closing that placement, there was a share consolidation of that round of 3.3:1, resulting in approx. 4.4m shares with an average cost of $0.045. There was then a 3-year escrow agreement applied to those shares.
Since MustGrow began to trade, there have been two 15% escrow releases of 660,000 shares. So, of the 4.4m, shares, 30% is free trading and 70% is left to come. So, every 6 months 660,000 shares get released, with 51.5% of that being management.
Word to the Wise
Do your own DD. We have done ours and our thesis on MustGrow remains intact: MustGrow is a well-structured company with a phenomenal management team positioning themselves to be the go-to provider of organic pesticide solutions to the Canadian cannabis industry & beyond.
Time will tell how MustGrow performs both as a company and within the public markets, we remain optimistic and will continue to cover this company.