To our shareholders,
As a pioneer in the CBD industry, MCOA’s journey has centered on the development of quality CBD products. Many of you have traveled this road with us, supporting our endeavors and watching the evolution of the hempSMART™ brand; others of you may be unfamiliar with our background. To fully understand where MCOA currently stands and how we intend to get where we WANT to be, it’s important to know our history. Like any business, MCOA’s roadmap is flagged with achievements and challenges, the remnants of which remain today.
Marketing Strategy Based on Credibility
When MCOA was founded in 2015, the 2018 Farm Bill was three years away, consumer interest in CBD was minimal, and banking for cannabis companies was virtually impossible. As a creator of CBD products, MCOA’s challenge was to create awareness and a bridge of acceptance to CBD and hemp in both consumer and investor circles. Previous MCOA management rose to the challenge, but not without investing an exorbitant amount of capital in marketing and brand building.
As awareness increased, “CBD” and “hemp” became widespread marketing buzz words, and management used that leverage to attract consumers. It was a feeding frenzy, and the cannabis sector exploded with growth. MCOA also benefitted, of course, having built through years of hard work and expense, incredible intangible value as a pioneer in the industry. We are pleased to note that MCOA did a lot of heavy lifting for the whole sector, in terms of consumer education and acceptance.
The “trend” of CBD and hemp have since expired, however, and the Company’s early strategies and projects created nearly
One of my first tasks after being appointed CEO in
MCOA offers organic, natural, high-quality CBD products, and that’s what consumers need to know. We invest extra funds to double-test our products, which is rare in the health and wellness industry, ensuring the integrity of our products is solid. When we send hempSMART™ products to a consumer, we know it’s backed with trust and credibility.
Today, we are committed to providing CBD products that improve the lives of consumers, elevating hempSMART™ as a trusted legacy brand. The marketing philosophy of previous management is gone. Our new strategy is to leverage the credibility of our products to pursue international expansion and reach bigger audiences.
Debt Reduction Strategy
Of greater importance than a shift in marketing is the change of culture. Previous management was known for selling stake in the Company, the optics of which were bad for the market. We want to assure you that under current management, we, as the current management, have a minimal buy/sell history and the frequent selling of shares held by the former executive team are not part of our game plan.
We have salvaged key assets of the Company, pivoting our sales strategy from capital-intensive affiliate marketing, which was initially used to raise brand awareness. At the time, the MLM structure made sense. However, it carried a heavy price tag.
Because of this model and investments in several since-failed ventures, my appointment as CEO carried with it
Our quarterly filings demonstrate our ability to reduce debt. As you’ll see, under new management, MCOA’s debt has gone only one direction: down.
Addressing Concern of Capital Structure
We also want to address concern that our fundraising initiatives will contribute new convertible debt and affect share prices. In short, we have transitioned from debt financing to equity financing, which is less dilutive to our shareholders.
We believe that a health capital structure is built with equity, not debt. Thus, we are pivoting away from big debt financing and toward equity financing, which can be seen by the recent S1 Registration statement.
See our filings here: https://www.marijuanacompanyofamerica.com/investors/sec-filings.
Outlook for 2021
Our primary goal in 2021 will be to expand our market reach into
We value your support as we mitigate inherited challenges to establish MCOA and the hempSMART™ brand as an industry icon.
We are optimistic that the future of MCOA is stronger than even the best day of its past.
Sincerely,
About
MCOA is an emerging industry leader with focus in product development and sales & marketing with its proprietary botanical ingredients legal hemp-based cannabidiol ("CBD") quality products under the brand name "hempSMART™". The Company's premium quality products are double lab tested for purity and potency and sold to wholesalers, distributors, via online e commerce consumer platform, and a proven network affiliate marketing program. The Company recently announced plans for international sales, production, and marketing expansion. For more information, please visit: https://www.marijuanacompanyofamerica.com/
About hempSMART Products Containing CBD
About Cannabis Global, Inc.
Cannabis Global, Inc., formerly known as
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future
Contact:
Tel: 888-777-4362
info@mcoainvestments.com
https://www.marijuanacompanyofamerica.com/
SOURCE
Source:
2020 GlobeNewswire, Inc., source