Since it would appear that my suspicions about their banking issues are not completely unfounded I feel safe in providing some background info. The company is the recently launched Kannaway
[Video with more spin on the banking issues
] and there is some room to be interested in their primary product line. When discussing Marijuana pretty much everyone knows what THC is, it's the cannabinoid substance which has inspired some of the best and worst music of the last hundred years. But far fewer people know about CBD (Cannabidiol). CBD is another cannabinoid and there is a growing body of evidence that some of
the perceived medical benefits of marijuana are due to CBD and CBD does not get you high. One particular health claim is CBD's effectiveness in certain seizure disorders what don't respond favorably to more established anti-seizure medications. (One of the better sources of information on CBD)
I imagine CBD related products are a genuine growth sector but there is just one teensy little problem to be faced, The DEA considers CBD to be a schedule 1 drug (control code number 7372
). Now it's fairly difficult to exaggerate how stupid I think this is, the definition of a schedule 1 drug is:
Schedule I drugs, substances, or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse. Schedule I drugs are the most dangerous drugs of all the drug schedules with potentially severe psychological or physical dependence.
CBD, does not get you high so it's hard to argue the abuse potential and it's even harder to pretend there is no medical use potential when PubMed lists more than 1,200 articles
about it. Yet I guess what I'm asking for is our nations drug policy to make sense and about the best thing I can say about banging your head against a wall, hour after hour, day after day is that when you eventually do stop, it feels so damn good (at least by comparison). Let's hope it stops soon.
OK, that's the good thing I can say about Kannaway and it's products even if they may sorta be illegal
. I will say more than one company are selling CBD products nation wide and so far no one has gotten busted for doing so. One technicality that HempMedsPx (Kannaway's product supplier) has been claiming is that all of their CBD is derived from industrial hemp and there is a appeals case which decided that the DEA
could not prevent Dr. Bronners' soap company
from selling hemp oil soap even if it did have more than zero (but less than useable) levels of THC. I posted the appeals ruling, I'm not a lawyer. It ~seems to me~ that it ruled that an otherwise valid product with ever so slightly higher than zero levels of a schedule one substance was not in the DEA's jurisdiction. The difference between that and this is, while the CBD Rich Hemp Oil™
is derived from legal hemp, it is not claiming to be so low in schedule 1 substance content so as to have no affect, it's claiming to have concentrated the schedule 1 substance content high enough to purportedly have an effect. As they say on Sesame Street "one of these things is not like the other."
Be that as it may.
The people behind Kannaway and HempMedsPx sure are an interesting sort. Two recent Forbes articles provide some
of the flavor here
. We have an interlinking group of pink sheet stock companies who's primary economic activity is passing shares in between themselves, a former CEO (and majority share holder of MJNA, Michael Llamas) facing fraud charges
from his recent past and Cannavest CEO Michael Mona who's living proof that being too shady for the Nevada Gaming Commission to grant you a casino license
is no bar to keep you from running a publicly traded (pink sheet) company.
There is dirt here and people are getting ripped off and that's even before we get to the MLM company.
As to Kannaway, they're providing me with a continuing education on modern MLM companies. It is just ever so very stupid to run a text book pyramid scheme when the law almost
allows you to get the same results with just a few precautions. NEVER pay for recruiting, that's just so 15 years ago. What you do is make absolutely no distinction between retail sales and affiliate purchases and incentiveize the living hell hell out first month purchases. You really do not need to pay people for the act of recruiting when you couple daily "Opportunity Presentations" on YouTube (pep rallies) with mega fat commissions on the first months product sales to new affiliates. It goes without saying that you don't really need to waste time with pesky things like customers when the sweet spot in the pay plan calls for $1K+ affiliate buy ins.
The good thing here is that Kannaway is self destructive and counterproductive on more than one level and may possibly have already hit their sell by date. Look at the number of video views on their official YouTube Channel
, look at their Google Trends stats
for how frequently their company name is used as a search term. Their key flaw, besides the over greedy MLM comp plan is product value. They may have made more effort to publicize the commercial properties of CBD than anyone else to date but in doing so anyone who bothered to comparison shop would find they could get far more CBD for much less money if they bought from any of a growing number of competitors.
Kannaway fell into their own trap, the MLM trap. MLM's do not sell products, they sell dreams. Dreams of easy wealth, dreams of being able to live off the (residual) efforts of others. What they forgot (and keep forgetting) is that even if (hell, especially if) their products have value, someone or many someones can bring it to market far cheaper when all they are selling is that product without also having to pay for residual dreams.