DNA Brands, Inc. (OTCMKTS:DNAX) has recently inked a letter of intent with a view to increasing its stake in Online Medical Resource Company. The founder of Online Medical Resource Company will also join the management team of DNA Brands.
On the website of Online Medical Resource Company medical consumers are offered resources which enable them to have more control of their health. The website contains more than 17,000 webpages of content and this includes videos, blogs, articles, natural remedies and lab testing. Online Medical Resource Company also has an e-store which has more than 16,000 medicinal products on offer.
Dual revenue streams
By acquiring Online Medical Resource Company DNA Brands will benefit from two revenue streams – product sales as well as revenues from online advertising. As a firm that focuses on businesses that have to do with industrial hemp, cannabinoid and medical marijuana markets, the management is convinced that acquiring a bigger stake in Online Medical Resource Company will greatly benefit DNA Brands.
The acquisition of a bigger stake in Online Medical Resource Company by DNA Brands coincides with a Medical Marijuana bill being signed into law in the state of Florida by Governor Rick Scott. Consequently some patients suffering from some diseases will now be allowed to use medical marijuana. This follows an amendment to the constitution of the state which got the approval of 71% of votes. Some of the diseases for which patients will be allowed to use medical marijuana include Parkinson’s disease, multiple sclerosis, post-traumatic stress disorder, HIV/AIDS, glaucoma, epilepsy and cancer.
Quick turnaround on deployed capital
Earlier in the year the chief executive officer of DNA Brands, Adrian McKenzie, had announced intentions to suspend plan to relaunch an energy drinks line owing to the fact that the sector was capital intensive and highly competitive. Additionally the sector suffers from long turnaround times with regards to deployed capital. Instead McKenzie indicated that the company would focus on industrial hemp, cannabinoids and medical marijuana markets as these were less capital intensive sectors and offered quicker turnarounds on deployed capital.
“The opportunities are many and the time to act is now,” said McKenzie.
According to Arcview Market Research, by the year 2019 the legal marijuana market in the United States will be worth more than $10.8 billion. By 2025 that market will have grown to be worth approximately $50 billion. This is especially so after more and more states legalize the use of medical marijuana with the most recent being West Virginia which legalized medical marijuana use this year.