Tuesday, May 5, 2009

Medical Marijuana Stock Doubles After Changing Name (Update1)

April 28 (Bloomberg) -- A debit-card company that changed its name to Medical Marijuana Inc. more than doubled on its first day of trading on the over-the-counter stock market.

The former Club Vivanet Inc. said it plans to use prepaid cards to manage tax collection and payment processes for marijuana dispensaries in states that allow the drug to be used for medicinal purposes, according to a release sent by Market Wire. The company, trading under the ticker MJNA, will also split its shares 10-for-1, the statement said.

States including Oregon and California allow residents to use marijuana for diseases ranging from cancer to epilepsy and glaucoma. More than 20,000 Oregon residents are registered to use the drug, based on statistics from the state’s Web site.

“This is a sizzle product,” Bruce Perlowin, Medical Marijuana’s chief executive officer, said in a telephone interview from El Paso, Texas. “We eventually want to be the McDonald’s of marijuana.”

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