| MDNT | 11:58am EST | 0.0125 | +0.0035 | +38.89% |
Medient Studios, Inc. (MDNT)
-Other OTC0.009 
| Volume: | 3,232,408 |
|---|
Medient Studios, Inc. (MDNT)
-Other OTC Follow0.0076 
Medient Studios, Inc. (MDNT) has announced that Mr. Manu Kumaran, Chairman of the Board and Chief Executive Officer has converted $660,000 of personal loans to the company into common stock at $0.064 per share, the book value of the company. The approximately 10.3 Million represents an 822% premium to the closing market price on February 7, 2014.
Mr. Kumaran stated, "My willingness to convert the entire amount of personal loans to the Company at such a substantial premium to the market, should clearly illustrate to all investors both my confidence in the business and commitment to delivering shareholder value. We see immense potential for Medient and continue to move forward aggressively with our plans to construct the Studioplex, which we believe will be the largest and most cost effective movie production studio in North America once completed. Additionally, we look forward to the domestic and international release of 'Yellow' later this year, which we expect will contribute significant revenue to Medient in 2014.
"Medient was founded 12 years ago and, to date, we have made 14 movies in four different languages. Our management team has over 150 years of cumulative experience and a track record of over 250 movies that have generated over $3 Billion in box office sales. Significantly, the senior management team has all accepted substantial cuts in pay, inspired and motivated by the vision and objectives of Medient. It's also important to focus on the strength of the balance sheet, which had assets audited and valued at over $44 Million with over $16 Million of net shareholder equity as of September 30, 2013, representing a book value well in excess of our current market cap.
"The real strength of Medient is the women and men, their 'never give up' attitude, their refusal to take 'no' for an answer, their deep and abiding lust for knowledge, their constant questioning of the status quo and the absolute desire to leave things better than they find them. I wish all of you could know the Medient team the way I do.
"Together, we intend to permanently change the way movies are financed, produced, and sold. The Studioplex will be a beacon for the best of the best across the entire entertainment industry.
"Clearly we haven't been successful in communicating our heritage, strengths and potential to the investor community and we recognize this fact. We will endeavor to correct this shortcoming and this decision to put my money where my mouth is, will hopefully underline my absolute commitment to Medient and our shareholders.
"I want to thank all our fellow shareholders for your belief and support and on behalf of our board and the entire team reiterate our unwavering sense of purpose to achieve our lofty goals."
For more information on Medient Studios, check out our Initial Report.
Source: MarketWired
Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
Twitter
Facebook- Medient Studios to Present at SeeThruEquity Winter Microcap Investor Conference in New YorkMarketwired(Mon, Feb 3)
- Medient Appoints Merriman Capital as Capital Markets Advisor and Designated Advisor for DisclosureMarketwired(Wed, Jan 29)
- Medient Completes Acquisition of Atlas international FilmMarketwired(Tue, Jan 28)
- Georgia Governor Cites Medient, GM, AT&T Amongst Significant Economic Development Projects of 2013Marketwired(Tue, Dec 24)
- Entertainment Mogul Charles Koppelman Joins MedientMarketwired(Wed, Dec 4)
- U.S. Army Corps of Engineers Greenlights Medient Studioplex ConstructionMarketwired(Wed, Oct 16)
| PLPL | 12:21pm EST | 1.46 | +0.06 | +4.29% |
Although the stock market has gotten off to a shaky start in 2014, there are still plenty of new investing opportunities. One company that has been a shining star thus far in 2014 is Plandai Biotechnology (OTCQB:PLPL). Investors looking for a small-cap company capable of participating in a fast-growing market that is riding a paradigm shift in government regulations should strongly consider Plandai Biotechnology.
Company Profile
The company develops highly bioavaiable, phytonutrient rich extracts that are being utilized to deliver a new family of drugs to safely and affordably treat a multitude of diseases and conditions. Plandai controls every aspect of the process, from growing the raw materials on its farms in South Africa to producing its patented Phytofare extracts-in-house, allowing the company to guarantee the continuity of supply as well as control throughout the entire process.
Entry into Cannabis
However, one of the primary reasons why Plandai Biotechnology stood out as a potential winning investment is because of the company's recent decision to form a new division called Cannabis Biosciences. The company announced on November 1, 2013, that it planned to create a new wholly-owned subsidiary to develop and test a new Phytofare botanical extract derived from cannabis. Given that the Plandai team already has specific and unique knowledge related to bioavailability and extraction capabilities, this is likely a wise decision as the company should have significant competitive advantages over its peers in the industry who simply want to ride the waves of the medical marijuana revolution. Following a series of studies and trials, Plandai's offerings have demonstrated the highest bioavailability in the industry. In some statistics, the absorption rate into the bloodstream was more than 8 times that of competing products. Moreover, competing products and approaches do not have the validation that Plandai has received via the recently formed relationship with Diego Pellicer. It is clear that the number one brand in the cannabis industry would seek out a partnership with the company that has produced the greatest bioavailability.
Diego Pellicer Deal - Growth Potential
In its first major step into the cannabis arena, on January 16th Plandai announced that it was forming a partnership with industry leader Diego Pellicer Worldwide. This partnership will allow Plandai Biotechnology to use the Diego Pellicer name for its Phytofare cannabis extracts in medical and pharmaceutical marijuana applications. For more than 100 years, Diego Pellicer has been one of the world's leading brands in cannabis products. The company's legacy began in the late 1800s when Diego Pellicer was the Vice Governor of the Island of Cebu in the Philippines. During this time, Diego was also the largest hemp grower in the world and supplied the Spanish Armada with Hemp during the Spanish American War.
Although Diego Pellicer was killed by the Americans during the war, his legacy lives on through his great grandson, Jamen Shively. Jamen Shively is the founder and executive director of Diego Pellicer. Mr. Shively has received a lot of recognition within the industry, not only for his work at Diego Pellicer, but for his past work experience. His track record includes:
- Background in engineering (U.C. Berkeley) and marketing with specialties in logistics, manufacturing, and the creation of new products and/or services.
- 6 years at Microsoft as the Corporate Strategy Manager. Mr. Shiveley focused on the creation and development of new categories of software products and online services.
- Founded Shively International - A company that operated both cybercafes and educational computer centers in Mexico.
- Currently the Founder and Executive Director of Diego Pellicer
Given his unique experience and educational background as well his entrepreneurial spirit and ties to Mexico, it would appear that Mr. Shively is the right man for the job.
Jamen Shively's goal is to turn Diego Pellicer into the Starbucks of cannabis. If successful, Diego Pellicer stands to gain a windfall. And thanks to the new partnership, so does Plandai Biotechnology. Investors debating whether to invest in Plandai should look at the Mr. Shively's success record and realize that the odds are in Plandai's favor.
Change In Regulation Coming
As mentioned, Jamen Shively's goal is to build the first national brand of retail marijuana. In addition, he wants to open up cannabis trade between the United States and Mexico. There will be significant legal hurdles to climb but it appears that the movement is beginning to gain steam. In two states, Colorado and Washington, the sale and possession of marijuana is legal for both medical and non-medical use. In addition, there are 19 other states that allow for medical marijuana use. Alaska, which is currently one of the 19 states that allow for medical marijuana use, just announced that the legalization of recreational marijuana will be on the ballot this year. Voters will be able to cast their vote in August.
NFL Could Be A Bonus
Another potential boon for the medical marijuana industry is the NFL's apparent willingness to use it to treat injuries. Roger Goodell, the NFL commissioner, recently stated that he was open to the idea of using medical marijuana as a pain reliever. He did say that the NFL's medical experts would have to reach the conclusion that the benefits of pain relief would have to outweigh the possible addiction issues. Pete Carroll, the coach of the Superbowl champion Seattle Seahawks, said that the NFL should explore using medicinal marijuana. His exact quote was: "I would say that we have to explore and find ways to make our game a better game and take care of our players in whatever way possible. Regardless of what other stigmas might be involved, we have to do this because the world of medicine is doing this."
Given the NFL's recent focus on safety (making head shots illegal), it would seem the question is not if medical marijuana will be approved, but when. Because of the focus on treating concussions, it would seem that medical marijuana could play a major role. Last August, the Cerebral Cortex (a respected journal published by the Oxford University Press), released results of a study that showed marijuana's ability to activate the body's cannabinoid receptors and lead to neuroprotective benefits. In other words, it can help treat the brain after a traumatic injury. If enough research comes out to support cannabis usage in this context, one would have to expect the safety concerns would trump all and lead to an eventual change in policy.
Medical Marijuana Health Benefits
One of the primary reasons why more organizations and legal entities are considering legalizing medical marijuana is because of the studies that have reported numerous benefits. Although he passed away in 2007, Dr. Tod Mikuriya was instrumental in taking the lead. Dr. Mikuriya was the former national administrator of the U.S. government's marijuana research programs. In a documentary called, "The Union", Dr. Mikuriya said the following: "After dealing with about 10,000 patients in the last 15 years, I'd say about 200 different medical conditions respond favorably to cannabis."
Some of the medical conditions which studies have shown that cannabis can improve include:
- Alzheimer's Disease
- Epilepsy
- Multiple Sclerosis
- Glaucoma
- Arthritis
- Depression
- Anxiety
- Hepatitis C
- Morning Sickness
Of the above conditions, Plandai Biotechnology is going to focus its research efforts on Alzheimer's, Parkinson's, and Multiple Sclerosis. Those are 3 areas of significant unmet medical need with significant market potential:
- Alzheimer's Disease Market Size - $10.2 billion in 2012
- Parkinson's Disease Market Size - $2.7 billion in 2010
- Multiple Sclerosis Market Size - Expected to reach $11.5 billion in 2015
Although it's extremely early, if Plandai can successfully navigate its way through trials, there could be significant potential for future revenue generation.
Fundamentals
As with any early-stage medical company, it's important to look at Plandai's financials to gauge the current situation. The company appears to be progressing as far as revenue generation is concerned. For the quarter ended September 30, 2013, Plandai generated $227,000 in total revenue, a meaningful increase compared to the prior three quarters. So while minimal in nature, the trend is impressive. With the new deal in place with Diego Pellicer, the trend should continue in Plandai's favor, but with much greater numbers.
On the balance sheet, the company ended the last quarter with approximately $376,000 in available cash and long-term debt of $11.8 million. However, the company just announced that it secured up to $15.3 million in funding from an institutional investor, Lincoln Park. Not only does that shore up the balance sheet, it ensures that Plandai will be at the forefront of the marijuana industry, since it has become well-capitalized overnight.
Technicals
The recent run that shares of Plandai Biotechnology have experience is impressive. Since the beginning of January, shares of Plandai have exploded higher by nearly 600% as of this writing ($1.56).
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