Medical Marijuana Inc (OTCMKTS:MJNA) Is One Of The Best Cannabis Exposures Out There

There's lots of erroneous capital being thrown around right now in biotech, and it's getting harder and harder to separate those companies that have solid underlying fundamentals from those that are just running up on hype. The former, of course, are the ones we are looking out for from a long term perspective (although this isn’t to say that there's not an opportunity to piggy back some of the hype, but timing is tough). One company that falls well within our target bracket is Medical Marijuana Inc (OTCMKTS:MJNA).We've covered MJNA on a number of occasions in the past, and it's one of the more well known companies in the space. It's a quarter of a million dollars' cash on hand, and more than $212 million total assets, and generated $1.7 million and $1.5 million revenues during the last two quarters respectively. These numbers present it as far better supported quantitatively than a number of companies that are up to a similar degree.For the purposes of this discussion, however, we're going to steer things away from MJNA specifically, and focus on its portfolio arm, Axim Biotechnologies Inc (OTCMKTS:AXIM). The latter just put out an update as to the progress of its entire development pipeline, and in doing so, has essentially offered up a roadmap of all the near and long term catalysts that could inject some upside momentum into Axim, and by proxy, MJNA.Here's what we consider to be the highlights.The lead asset, and the one to which we are attributing the majority of the company's valuation right now (ad likely for the foreseeable future) is a gum based product called MedChewRX. The product demonstrated solid efficacy in a phase I trial earlier this year, and Axim aims to push it through a phase II, as well as kick off a phase III, during 2017. With an NDA submission slated tentatively for 2018 (we believe this is probably slightly overoptimistic, and are looking at 2019 as a more realistic target), this product could be huge.It's targeting multiple sclerosis and pain spasticity – an indication in which the gum's active compounds, THC/CBD, have already proven effective. There's a close to $5 billion market potential, and it's a real unmet need right now. Beyond MS, there's Parkinson's, Dementia and RLS a little farther down the line.These targets are going to cost money to carry through to NDA, of course, and this is where the non pharmaceutical pipeline comes into play. Axim has a host of target indications for its CannChew brand, which include general well being application and anti-smoking, that the company intends to push into the market during 2017.The revenues generated by these non-pharmaceutical indications will foot the R&D bill on the blockbusters, and while they likely won't cover the entire cost, the capital generated will take the edge of any dilutive raises. The impact of these raises on MJNA shareholders remains to be seen – it's all rooted in how Axim structures the issue. There will be an impact, however, and that's worth keeping in mind.The takeaway on this one is that MJNA is a solid cannabis exposure, which is generating revenues and has cash on hand. It's capitalization right now doesn’t dramatically outweigh the assets on its books, and that's more than can be said about probably 70-80% of the companies that are currently gaining strength on the wave of speculative capital flooding into the space right now.There's exposure to both recreational and medicinal, with bread and butter revenues offered through its own operations and the non-pharma arm of Axim, and the potential for blockbuster revenues heading into late 2019.It's not without risk, and the potential for dilution plays into any future value weighting, but if there's run room in the space going forward, and we think there is, then MJNA's potential to take advantage of this run room outweighs the risk of equity driven, per-share value loss.We will be updating our subscribers as soon as we know more. For the latest updates on MJNA, sign up below!Disclosure: We have no position in MJNA or AXIM and have not been compensated for this article.