Medical Marijuana Inc. Smear Campaign Lawsuit

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Phillip E. Koehnke, Esq. (163912)
Phillip E. Koehnke, APC
PO Box 235472
2 Encinitas, CA 92024
(858) 229-8116
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Attorneys for Medical Marijuana, Inc.
And HempMeds PX, LLC 4.
JAN 16 2015
FChit at th. Suptior
Ecouip
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SAN DIEGO — CENTRAL DIVISION
Medical Marijuana, Inc., an Oregon
Corporation; HempMeds PX, LLC, a
California Limited Liability Company;
Plaintiffs,
VS.
CannLabs, Inc., a Nevada
Corporation, Rifle Mountain, LLC, a
Colorado Limited Liability Company,
Stewart Environmental Consultants,
LLC, a Colorado Limited Liability
Company, Genifer Murray, an
individual, Jason Cranford, an
individual, ProjectCBD.com , a
California business entity, Aaron
Miguel Cantu, an individual, Martin
Lee, an individual, and DOES 1-20
inclusive,
Defendants.
CASE NO. JANI675,='10C3
37-2014-00036039-CU-DF-CTL
FIRST AMENDED COMPLAINT FOR:
1. Libel
2. Trade Libel
3. False Light
4. Negligence
5. Intentional Interference with
Prospective Business Advantage
Judge: Joel R. Wohlfeil
Dept: C-73
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PLAINTIFFS MEDICAL MARIJUANA, INC. AND HEMPMEDS PX, LLC ARE
INFORMED AND BELIEVE, AND BASED THEREON ALLEGE AS FOLLOWS:
Il-
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FIRST AMENDED COMPLAINT
www.cannabidial.com

PARTIES
1. At all times herein mentioned, Plaintiff, MEDICAL MARIJUANA, INC. was, and
now is, an Oregon Corporation registered to do business in California, doing business in the
County of San Diego, State of California.
2. At all times herein mentioned, Plaintiff, HEMPMEDS PX, LLC was, and now is,
a California Limited Liability Company, doing business in the County of San Diego, State of
California. HEMPMEDS PX, LLC is a wholly owned subsidiary of MEDICAL MARIJUANA,
INC.
3. As used herein, "Plaintiffs" collectively refers to MEDICAL MARIJUANA, INC.
and HEMPMEDS PX, LLC.
4. Plaintiffs are informed and believe, and based thereon allege, that Defendant,
GENIFER MURRAY (hereinafter referred to as "Murray") is, and at all times herein mentioned
was, an individual with continuous and substantial contacts with the State of California,
including, but not limited to, solicitation of business, formulation, publication, and distribution of
statements and posts via the Internet throughout the State of California, as well as in all other
states of the United States, and throughout the world.
5. Plaintiffs are informed and believe, and based there on allege, that Defendant
Murray is, and at all times herein mentioned was, the Chief Executive Officer and President of
CannLabs, Inc., a Nevada corporation with its principle place of business located in Denver,
Colorado, and is publicly traded on the stock market under the ticker "CANL..
JASON CRANFORD (hereinafter referred to as "Cranford") is, and at all times herein
mentioned was, an individual with continuous and substantial contacts with the State of
California, including, but not limited to, conducting business while serving as a Board Member
for KannaLife Sciences, Inc., formulating, publishing, and distributing statements via the
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Internet throughout the State of California, as well as in all other states of the United States,
and throughout the world.
7. Plaintiffs are informed and believe, and based thereon alleged, that Defendant
Cranford is, and at all times herein mentioned was, the owner of Rifle Mountain, LLC, a
Colorado corporation with its principle place of business located in Boulder, Colorado.
CANNLABS, INC. (hereinafter referred to as "CannLabs") is, and at all times herein
mentioned was, a Nevada business entity with its principle place of business in Colorado, and
a business entity with continuous and substantial contacts with the State of California,
including, but not limited to, trading on the stock exchange, solicitation of business,
formulation, publication, and distribution of statements by its officers via the intemet
throughout the State of California, as well as in all other states of the United States, and
throughout the world.
9. Plaintiffs are informed and believe, and based thereon allege, that Defendant, •
Rifle Mountain, LLC, (hereinafter referred to as "Rifle Mountain, LLC") is, and at all times
herein mentioned was, a Colorado business entity with its principle place of business in
Colorado, and a business entity with continuous and substantial contacts with the State of
California, including, but not limited to, solicitation of business, formulation, publication, and
distribution of statements by its officers via the intemet throughout the State of California, as
well as in all other states of the United States, and throughout the world.
Stewart Environmental Consultants, LLC, (hereinafter referred to as "Stewart") is, and at all
times herein mentioned was, a Colorado business entity with its principle place of business in
Colorado, and a business entity with continuous and substantial contacts with the State of
California, including, but not limited to, solicitation of business, formulation, publication, and
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distribution of statements by its officers and/or employees via the intemet throughout the State
of California, as well as in all other states of the United States, and throughout the world.
11. Plaintiffs are informed and believe, based thereon allege, that Defendant
ProjectCBD.com (hereinafter referred to as "Project CBD") is, and at all times herein mentions
was a California business with its principle place of business in California, and a business
entity with continuous and substantial contacts with the State of California, including, but not
limited to, solicitation of business, formulation, publication, and distribution of statements by its
officers and/or employees via the intemet throughout the State of California, as well as in all
other states of the United States, and throughout the world.
Aaron Miguel Cantu ("Cantu") is, and at all times herein mentioned was a writer for Project
CBD.
Martin Lee ("Lee") is, and at all times herein mentioned was, the owner and director of
Project CBD.
14. Plaintiffs are ignorant of the true names and capacities of Defendants sued
herein as Does 1 through 20, inclusive, and therefore sue these Defendants by such fictitious
names. Plaintiffs will amend the complaint to allege their true names and capacities when
ascertained. Plaintiffs are informed and believe, and based thereon allege that each of the
fictitiously named Defendants, including all or some of the DOE Defendants, is responsible in
some manner for the occurrences herein alleged, and that Plaintiffs' damages as herein
alleged were proximately caused by their conduct.
15. Plaintiffs are informed and believe, and based thereon allege that CannLabs,
Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, were acting as agents, independent
contractors, and/or employees of each other, and in doing the things hereinafter alleged, were
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acting within the course and scope of such agency, and with the permission and consent of
such other Defendants. CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD,
Cantu, Lee and DOES 1 through 20, and/or each of them, jointly or separately, acted as
alleged herein for financial gain and to damage Plaintiffs.
16. Plaintiffs are informed and believe, and based thereon allege CannLabs, Rifle
Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, were responsible in some manner for the
formulation, publication, and distribution of false statements concerning Plaintiffs and Plaintiffs'
products.
17. Plaintiffs are informed and believe, and based thereon allege, that at all times
mentioned herein, and in doing the acts hereinafter set forth CannLabs, Rifle Mountain, LLC,
Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, and/or each of them,
were primary participants in intentional and malicious conduct calculated to and actually
causing injury to Plaintiffs in this State, in the remainder of the United States and throughout
the world.
18. Plaintiffs are informed and believe, and based thereon allege, that CannLabs,
Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, acted with actual malice. Plaintiffs are
informed and believe, and based thereon allege, that CannLabs, Rifle Mountain, LLC, Murray,
Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each of
them, jointly or separately, either had actual knowledge that the statements concerning
Plaintiffs and Plaintiffs' product, Real Scientific Hemp Oil (RSHO), included false statements,
were degrading to Plaintiffs, or in the alternative, acted in reckless disregard of the truth.
19. Plaintiffs are informed and believe, and based thereon allege, that the
dissemination of the statements were extensive, and that the defamatory, false, and invasive
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statements contained therein, have been seen and read by thousands upon thousands of
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persons in California and elsewhere within the United States and internationally.
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inclusive, and/or each of them, jointly or separately, had actual knowledge that the publication
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and dissemination of statements about Plaintiffs would have injurious impact upon Plaintiffs
worldwide, but particularly in California where Plaintiffs are domiciled.
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21. Plaintiffs are informed and believe, and based thereon allege, that commencing
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sometime in or about April, 2014, CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project
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CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each of them, jointly or
separately, knowingly, maliciously and willfully, conspired and agreed among themselves to
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tortiously and/or unlawfully injure Plaintiffs by committing the acts herein alleged in
furtherance of such conspiracy and agreement.
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inclusive, and/or each of them, jointly or separately, knowingly and willfully conspired to post
statements on the intemet about Plaintiffs for, among other things, financial gain, with the
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knowledge that in doing so it would damage the reputation and well-being of Plaintiffs.
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aforementioned conspiracy was operated to perform the tortious course of conduct and the
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illegal acts described hereinafter, which were done in furtherance of the objectives of the
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conspiracy, all to Plaintiffs' damages as alleged herein.
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inclusive, and/or each of them, jointly or separately, furthered such conspiracy by ratifying and
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adopting the acts of each of the other members of the conspiracy. As a result of said
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conspiracy, Plaintiffs have suffered the damages set forth herein which were actually and
proximately caused jointly and severally by each and every Defendant.
inclusive, and/or each of them, jointly or separately, knew of some, or all of the wrongful acts
described hereinafter, yet CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD,
Cantu, Lee, and/or DOES 1 through 20, and each of them, nevertheless knowingly assisted in
the performance of those wrongful acts, or otherwise participated in furtherance of the
conspiracy to Plaintiffs' damages as alleged herein.
FACTS COMMON TO ALL CLAIMS
26. Plaintiffs re-allege and incorporate by reference the allegations contained in
Paragraphs 1 — 25 above as though fully set forth herein.
27. Plaintiff MEDICAL MARIJUANA, INC. is a business specializing in investing in
industrial hemp businesses. In particular, Plaintiff MEDICAL MARIJUANA holds interests in a
variety of companies, including HEMPMEDS PX, LLC, a wholly owned subsidiary specializing
in the production, sale, and distribution of cannabidiol (CBD)-containing hennp oil, which is
known by the trade name "Real Scientific Hemp Oil" or "RSHO." Plaintiff MEDICAL
MARIJUANA also holds interests in KannaLife Sciences, Inc. (hereinafter referred to as
"KannaLife"), a business with its principle place of business in New York.
28. Plaintiffs are informed and believe, and based thereon allege, that on or about
March 31, 2014, Defendant Cranford resigned from KannaLife's Board of Directors, allegedly
stemming from a business dispute. Cranford stated this information in an email to other board
members of KannaLife and brought up RSHO in his statements.
29. Plaintiffs are informed and believe, and based thereon allege, that Cranford
owns a business, "Rifle Mountain, LLC", (hereinafter referred to as "Rifle Mountain, LLC"), a
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Colorado medical marijuana dispensary, since December 30, 2011. This business continues
to operate under Cranford's ownership.
30. Plaintiffs are informed and believe, and based thereon allege, that while
conducting business through Rifle Mountain, LLC, Cranford also served on the Board of
Directors at KannaLife, Inc. After leaving the Board at KannaLife, Inc., Cranford and Rifle
Mountain, LLC started selling high CBD products which were competitive with other CBD-
containing products (including RSHO) being sold by HempMeds and Medical Marijuana, Inc.
Accordingly, Cranford had motive to discredit RSHO, HempMeds, and Medical Marijuana, for
his personal financial gains.
April 26, 2014, Cranford created a "public announcement" by posting on Cranford's public
Facebook profile that he would have Plaintiffs' product, RSHO, tested at Colorado State
University veterinary lab (hereinafter referred to as "CSU"), a diagnostic lab for animals and
animals' food, that Cranford acknowledged, “does not specialize in Cannabis." Cranford
stated that CSU's report would be neutral and accurate. Cranford also posted a picture of
CSU's Veterinary Hospital in the same post. This post reached over one hundred twenty (120)
readers nationwide. [See Exhibit A].
32. Plaintiffs are informed and believe, and based thereon allege, that Cranford also
stated in his posting that a child by the name of Jaqie Angel had become sick due to a bad
reaction to Plaintiffs' product. [See Exhibit B].
33. Plaintiffs are informed and believe, and based thereon allege, that Cantu, Lee
and Project CBD used Cranford as a source to state that Jaqie Angel became sick due to a
bad reaction to the Plaintiffs product. [See Exhibit C and M].
34. Plaintiffs are informed and believe, and based thereon allege, that ultimately,
CSU did not perform the test on Cranford's sample.
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2 May 8, 2014, Cranford then took the purported RSHO sample to Stewart Environmental
3 Consultants, LLC, an environmental testing lab specializing in soil testing. Stewart accepted
4 the sample and performed tests for volatile organic compounds (VOC) and heavy metal
5 concentrations on the purported RSHO sample provided by Cranford.
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36. Plaintiffs are informed and believe, and based thereon allege, that while waiting
7 for the Stewart results, Cranford continued to post on Facebook that results were coming
8 soon, and that CSU had to outsource some of the tests. [See Exhibit C].
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10 May 23, 2014, Stewart caused a preliminary report on the purported RSHO sample submitted
11 by Cranford to be released to Cranford. The preliminary report did not reflect the final
12 reporting values on many analytical parameters, including heavy metals such as lead,
13 molybdenum, nickel, selenium, and silver, among other metals. [See Exhibit D].
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15 May 23, 2014, Cranford released copies of "preliminary" test results from Stewart. These
16 preliminary test results were not accurate and did not reflect the true contaminant levels in the
17 purported RSHO sample, and Plaintiffs are informed and believe and hereby allege that
18 Cranford was aware that the preliminary test results were inaccurate. Cranford stated in
19 another Facebook post that the results were posted on Jaqie Angel's Facebook page. [See
Exhibit E].
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39. Plaintiffs are informed and believe, and based thereon allege, that Murray was
and is the Chief Executive Officer and President of CannLabs and had motives to discredit
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24 as a cannabis testing facility and to appear as if doing the public a service by discrediting
RSHO, HempMeds, and Medical Marijuana.
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May 8, 2014, Murray posted false statements about Plaintiffs and its RSHO on the Internet,
which was then reposted, used and referred to by numerous different social media platforms,
including the Investor Hub chat rooms. The false statements by Murray (hereinafter referred
as "Murray's Post") stated as follows: "Hello Everyone: something has come to my attention .
and I feel I need to share it. The RSHO Real Scientific Hemp Oil was taken to the CSU lab so
they could do extensive tests on it. The preliminary results: The lab I sent RSHO to called me
this morning to warn me about consuming it. They are not finished but already found heavy
metals, fluorides, chlorides and bromine. They said it is dangerous to consume and warned
me not to let anyone take it. They said it is not even hemp oil. Please do not consume this
product until we have more information." [See Exhibit F].
41. Plaintiffs are informed and believe, and based thereon allege, that Murray's
statements were false because on or about Maya, 2014, CSU did not and had not tested any
purported RSHO sample.
May 19, 2014, a Facebook Profile by the name Shannon Moore re-posted a quote of Murray's
Post on a thread conversation on his Facebook account. However, Murray's post was edited
by Cranford as follows: The words "[t]he lab" were replaced by the words "[t]he other lab,"
and "[p]lease do not consume this product until there is more information" was replaced with
"[p]lease do not consume this until there is better understanding." [See Exhibit G].
43. Plaintiffs are informed and believe, and based thereon allege, that as a result of
Murray's Post having been re-posted by Shannon Moore, the false statement regarding
Plaintiffs' RSHO was broadcasted to additional readers, which included Shannon Moore's
followers on Facebook.
44. Plaintiffs are informed and believe, and based thereon allege, that thereafter,
Cranford posted an email for people to contact if they had suffered negative reactions after
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1 taking Plaintiffs' RSHO product. The email address as posted in Cranford's timeline was:
2 rshocomplaintsaomail.com . [See Exhibit B].
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45. Plaintiffs are informed and believe, and based thereon allege, that as a result of
4 Murray and Cranford's announcements, people throughout the world have read and followed
5 the story and re-posted it on their Facebook timelines, further publishing the false statements
concerning Plaintiffs.
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8 May 26, 2014, Julian McCulloch, a Facebook profile who followed Cranford's story, posted the
9 photos of preliminary test results from Stewart Environmental Consultants, LLC that Cranford
had previously posted. [See Exhibit H].
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12 May 30, 2014, Stewart published the complete and final test results on the purported RSHO
13 sample submitted by Cranford. The final results showed significant different reporting values,
14 especially for heavy metals such as lead, molybdenum, nickel, selenium, and silver, among
other metals [See Exhibit l].
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June 1, 2014, despite the knowledge of the final test results from Stewart, Cranford stated that
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18 he "... [j]ust read a message from a Mom saying her child died from heavy metal poisoning
after use of [Plaintiffs] product. I will post the link." Cranford then posted a link to a statement
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written by "Sarah Hadigan," a profile on Facebook. The link posted by Cranford stated, "Sarah
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21 Hadigan" referred to Plaintiffs' product, RSHO, by stating, among other things, "My daughter
is dead because of this product....[m]y daughter had more metals in her liver, kidney, and
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muscle tissues than fort knox has gold." [See Exhibit J].
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June 5, 2014, Stewart, by and through Michael Glavanovich, its lab manager, stated in an
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email communication that the preliminary test results published by Cranford were not
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accurate, were possibly contaminated as the sample had been through three (3) different
hands without proper chain of custody record before arriving at Stewart, did not account for
contaminations introduced during the measurement process, did not reflect the final testing
results, and should not have been published. [See Exhibit K].
October 14, 2014, Cantu, By and through Lee and Project CBD published an article titled
"Hemp Oil Hustlers- A Project CBD Special Report on Medical Marijuana Inc., HempMeds &
Kannaway," (hereinafter referred to as "Hemp Oil Hustlers"). This article claimed to have
evidence that RSHO was contaminated with heavy metals and solvents without verifying the
accuracy of the results from Stewart Environmental. Project CBD also alleged that multiple
people became ill after using RSHO due to heavy metals and other toxins based on
Cranford's opinion. Lee wrote a forward for Cantu's article, asserting opinions and rumors as
fact without proof or citation, and published Cantu's article on his Project CBD website. [See
Exhibit M].
51. Plaintiffs are informed and believe, and based thereon allege, that the Hemp Oil
Hustlers article from October 14, 2014, has been republished on at least seventy- eight other
websites. [See Exhibit U.
52. Despite knowledge that the preliminary results were inaccurate, CannLabs, Rifle
Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately continued to publish these results.
53. Plaintiffs are informed and believe, and based thereon allege, that CannLabs is
in the cannabis and hemp industry and competes against Plaintiffs. CannLabs, by and through
Murray, published untrue statements of fact concerning RSHO, HempMeds, and Medical
Marijuana to create positive publicity for CannLabs as a cannabis testing facility and to appear
as if doing the public a service by discrediting RSHO, HempMeds, and Medical Marijuana.
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54. Plaintiffs are informed and believe, and based thereon allege, that Rifle
2 Mountain, LLC is in the cannabis and hemp industry and competes against Plaintiffs. Rifle
3 Mountain, LLC, by and through Cranford, published untrue statements of fact concerning
4 RSHO, HempMeds, and Medical Marijuana, which and who are competing product and
5 businesses of CannLabs' business, for its financial gains.
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55. Plaintiffs are informed and believe, and based thereon allege, that in the month
7 of March, 2014, Medical Marijuana's stock price, trade by the ticker "MJNA" was at
$0.34/share.
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56. Plaintiffs are informed and believe, and based thereon allege, that ever since
10 CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1
11 through 20, inclusive, and/or each of them, jointly or separately, made these announcements;
12 Plaintiff MEDICAL MARIJUANA INC.'S stock price has plummeted and has not been able to
recover.
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57. Plaintiffs are informed and believe, and based thereon allege, that as a direct
15 and proximate result of the Defendant's actions, Plaintiffs have been damaged and continue to
16 suffer damages in excess of one hundred million dollars ($100,000,000).
FIRST CAUSE OF ACTION
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(For Libel as to Defendants CannLabs, Rifle Mountain, LLC, Murray, Cranford,
Project CBD, Cantu, and Lee)
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59. Plaintiffs are informed and believe, and based thereon allege, that between May
23 1, 2014 and June 1, 2014, CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD,
24 Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately,
published negative statements of fact about Plaintiffs on Facebook, which contained untrue
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and false statements regarding Plaintiffs' product, RSHO.
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60. The statements of fact about Plaintiffs are and were false, untrue, and
defamatory. The statements published by CannLabs, Rifle Mountain, LLC, Murray, Cranford,
Project CBD, Cantu, Lee and/or DOES 1 through 20, inclusive, and/or each of them, jointly or
separately, were libelous on its face and the statements wrongfully accused Plaintiffs, and
were intended to wrongfully accuse Plaintiffs, of actions and statements that were false,
defamatory, and damaging.
61. The statements published by CannLabs, Rifle Mountain, LLC, Murray, Cranford,
Project CBD, Cantu, Lee and/or DOES 1 through 20, inclusive, and/or each of them, jointly or
separately clearly expose Plaintiffs to hatred, contempt, ridicule and obloquy because they
falsely accuse and depict Plaintiffs, among other things, as companies which supply a product
(RSHO) that contains high heavy metal concentrations and bleach, and as companies that
misrepresent the nature of their product.
62. CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee,
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, knew that
statements published by Murray and Cranford as it applied to Plaintiffs to be false, and were
intended by CannLabs, Rifle Mountain, LLC, Murray, Cranford, and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, to convey a false or defamatory
statements about Plaintiffs.
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, wrote,
published, and circulated, and/or caused to be written, published and circulated, the libelous
statements concerning Plaintiffs either with knowledge of the falsity of the statements or with
reckless disregard for the truth.
64. The statements appearing in the posts written by CannLabs, Rifle Mountain,
LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, were so
understood by those who read the statements to have the defamatory meaning ascribed to by
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Defendants. CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee,
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, intended the
statements to be read by consumers nationally, internationally, and specifically within the
State of California where Plaintiffs were and are domiciled.
65. At the time the statements were being publicly distributed and circulated
throughout the United States and the world, CannLabs, Rifle Mountain, LLC, Murray,
Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each of
them, jointly or separately, were in possession of evidence which would raise serious doubt
about the truth of their statements.
66. At the time the statements were publicly distributed and circulated throughout
the United States and the world, CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project
CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each of them, jointly or
separately, failed to sufficiently investigate the truth of their statements. Thus, Defendants,
and each of them, lacked any substantial reason to believe in the truth of the allegations
contained within the posts. The untruthful statements were therefore made with actual malice,
with the knowledge that each such statement was false and the statements were published
with reckless disregard of their truthfulness.
67. The statements were written and published with reckless disregard for the truth
of the matter, and Defendants knew at the time the statements were formulated that they were
false and injurious to Plaintiffs with respect to their reputation, character, and business.
68. As a legal result of the statements made by CannLabs, Rifle Mountain, LLC,
Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each
of them, jointly or separately, Plaintiffs have suffered loss of reputation, shame and
mortification, all to their general damage in a sum to be proven at trial.
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69. The defamatory statements were not privileged in any manner. The statements
were intended by Defendants, and each of them, to directly injure Plaintiffs with respect to its
reputation, character, and business.
70. As a legal result of the defamatory statements, Plaintiffs have suffered loss of
reputation and general damage, the exact amount of which to be proven at trial.
71. As a legal result of the intentional and malicious conduct of CannLabs, Rifle
Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, Plaintiffs have suffered with respect to its
property, business, trade, profession and occupation, all to its special damage in a sum to be
determined at time of trial.
72. By engaging in the misconduct alleged above, CannLabs, Rifle Mountain, LLC,
Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1 through 20, inclusive, and/or each
of them, jointly or separately, intended to cause Plaintiffs injury or engaged in that misconduct
with the willful and conscious disregard for the rights of Plaintiffs.
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, were aware of
the probable dangerous consequences of their misconduct and willfully and deliberately failed
to avoid those consequences, including subjecting Plaintiffs to cruel and unjust hardship, in
conscious disregard of Plaintiffs' rights. Thus, the award of exemplary and punitive damages
is justified.
SECOND CAUSE OF ACTION
(For Trade Libel as to Defendants CannLabs, Rifle Mountain, LLC, Murray,
Cranford Project CBD, Cantu and Lee)
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75. Plaintiffs are informed and believe, and based thereon allege, that Plaintiffs'
product, RSHO, previously enjoyed a good reputation in the community.
inclusive, and/or each of them, jointly or separately, intentionally, wrongfully, without
justification, and without privilege made statements that Plaintiffs' product (RSHO) was
dangerous to consume, contained heavy metals, fluorides, chlorides, bromine, and bleach at
high concentration, that it was not even hemp oil, that it caused the death of a child [known as
"Jaqi Angel" on Facebook].
inclusive, and/or each of them, jointly or separately, published these statements on Facebook,
an international social network media with billions of participants and readers. Defendant
Murray's Facebook page had a total of four thousand nine hundred eleven (4911) followers
and friends. Defendant Cranford's Facebook posts also received hundreds of shares and
likes.
78. Plaintiffs are informed and believe, and based thereon allege, that followers of
CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1
through 20, and/or each of their Facebook statements reposted and broadcasted CannLabs's,
Rifle Mountain, LLC's, Murray's, Cranford's, Project CBD, Cantu, Lee, and/or DOES 1 through
20, and/or each of their statements on other various social media outlets, including Investor
Hub. Investor Hub is a popular social media platform wherein investors and interested
business persons discuss the business potential of various products and businesses.
Post and/or DOES 1 through 20's statements were quoted and publicized in a paper by
Project CBD, an online information website calling for the legalization of medical marijuana,
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and Aaron Miguel Cantu, an employee of Project CBD. The "Hemp Oil Hustlers" article has
been reprinted and updated as of November 4, 2014.
Post and/or DOES 1 through 20's statements were quoted and publicized worldwide in an
article, "Intrigas, dinheiro e cannabidiol," published online by Super Interessante, a major
online newspaper in Brazil.
81. These statements were made about and concerning Plaintiffs' product, RSHO,
and were understood by readers to refer to Plaintiffs' product, because these statements
specifically mention Plaintiffs' product, RSHO, which is a product owned and/or sold by
Plaintiffs. By reading the statements made explicitly about Plaintiffs' RSHO, a reader would
understand that the statement's referred to Plaintiffs' product.
82. These statements are false. Plaintiffs' product is not dangerous to consume;
Plaintiffs' product does not contain heavy metal, fluorides, chlorides, bromine, and/or bleach
at such concentrations; Plaintiffs' product is hemp oil derived from industrial hemp plants.
83. These statements disparaged Plaintiffs' product in that they specifically told
readers not to consume Plaintiffs' product; falsely indicating that Plaintiffs' product contained
heavy metals, fluorides, chlorides, and bromine; that Plaintiffs' product was not even hemp
oil; that Plaintiffs' product was dangerous to consume; and that Plaintiffs' product contained
bleach.
inclusive, and/or each of them, jointly or separately, made these statements with knowledge of
their falsity or with reckless disregard for their truth or falsity.
inclusive, and/or each of them, jointly or separately, made these statements with negligent
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disregard for their truth or falsity, in that CannLabs, Rifle Mountain, LLC, Murray, Cranford,
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, sent Plaintiffs'
food product to a soil testing lab, then brandished preliminary results before acquiring more
information.
4
86. Plaintiffs are informed and believe, and based thereon allege, that Defendant
Murray is a scientist with a Bachelor of Science Degree in Microbiology from Colorado State
University, and is the Chief Executive Office of a cannabis testing company. A reasonable
person with Defendant Murray's educational and professional background would understand
that preliminary results are inconclusive. Yet, Defendant Murray specifically told her Facebook
audience "...[n]ot to consume Plaintiffs' product until they had more information."
87. The statements proximately caused damage to Plaintiffs in that they have
deterred customers from purchasing Plaintiffs' above-described product. They have also
deterred customers from conducting business with Plaintiffs. As a direct and proximate result
of these statements, Plaintiffs have suffered pecuniary loss in a sum to be proven at trial.
88. The statements were motivated by Defendants' malice and oppression in that
Defendants submitted an unsealed and unverified sample of Plaintiffs' food product (RSHO) to
a soil testing lab, published the preliminary results, and published false statements of facts
concerning Plaintiffs' product, and warned consumers not to consume Plaintiffs' product
before any results were even published. Therefore, Plaintiffs are entitled under Civil Code
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section 3294, subd. (a) to punitive damages in an amount sufficient to punish Defendant and
deter similar conduct in the future.
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THIRD CAUSE OF ACTION
(For False Light as to Defendants CannLabs, Rifle Mountain, LLC, Murray,
Cranford Project CBD, Cantu, Lee)
May 19, 2014, CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, without
Plaintiffs' consent, put Plaintiffs in a false light by writing, publishing, and circulating negative
statements about Plaintiffs on Facebook, which contained untrue statements of fact regarding
Plaintiffs and Plaintiffs' product, RSHO.
disclosure by Defendants, and each of them, jointly or separately, created publicity in the form
of a public disclosure to a large number of people, as Defendants' posts are and were read
by thousands of people in the state of California, throughout the United States and throughout
the world.
92. The publicity created by Defendants, and each of them, jointly or separately,
placed Plaintiffs in a false light in the public eye, in that the posts were fabricated by
Defendants, and each of them, and publicly conveyed, and was intended to convey, a
calculatedly false and inaccurate impression of Plaintiffs as companies which supplied
products with toxic contaminations, which misrepresented the nature of the product, and of
Plaintiffs' food product, RSHO, as a product containing bleach and high concentrations of
heavy metals and other organic compounds.
93. The publicity created by the posts was highly objectionable to Plaintiffs, and
would be to any company of ordinary sensibilities. The posts made Plaintiffs the object of
scorn and ridicule by many residents of the State of California, citizens of the United States,
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and in general, people throughout the world, and were intended to and did directly injure the
Plaintiffs with respect to their reputation, character and business
94. The formulation and publication of the posts by CannLabs, Rifle Mountain, LLC,
Murray, Cranford, Project CBD, Cantu, Lee and/or DOES 1 through 20, inclusive, and/or each
of them, jointly or separately, were each done with actual malice in that each was done with all
or some of Defendants' knowledge of the posts' falsity, or in reckless disregard of the truth. At
all relevant times, all or some of the Defendants were aware, or should have been aware, of
facts contrary to the Defendants' malicious allegations.
Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee and/or DOES 1 through 20,
inclusive, and/or each of them, jointly or separately, were also negligent in publishing the
posts; as with ordinary and reasonable care, Defendants would have realized, or could have
discovered, that the statements made in various Facebook posts by Defendants were
obviously false and grossly libelous, offensive, and damaging to Plaintiffs.
96. As a legal result of the statements, Plaintiffs have suffered loss of reputation,
character and business, all to their general damages in a sum to be determined at trial.
97. As a further legal result of the above-mentioned disclosure, Plaintiffs have
suffered injury to its business all to their special damage in an amount to be proven at trial.
98. In making the disclosure described above, CannLabs, Rifle Mountain, LLC,
of them, jointly or separately, are guilty of oppression, fraud, or malice in that Defendants
made the disclosure with a willful disregard of Plaintiffs' rights. Defendants' acts in formulating
and publishing the posts were done with the knowledge by Defendants that such acts would
cause Plaintiffs to suffer injury. Defendants' acts were therefore willful, wanton, intentional,
and actually malicious and oppressive, thereby justifying the award of exemplary and punitive
damages according to proof at trial.
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99. As a legal result of the posts and the false statements, Plaintiffs have suffered
loss of reputation, character, and business, all to their general damage in a sum to be proven
at trial.
100. The defamatory statements contained in the posts were not privileged in any
manner. The statements were intended by Defendants, and each of them, to directly injure
Plaintiffs with respect to their reputation, character, and business.
101. As a legal result of the articles, Plaintiffs have suffered general damage, the
exact amount of which to be proven at trial.
102. As a legal result of the intentional and malicious conduct of CannLabs, Rifle
inclusive, and/or each of them, jointly or separately, Plaintiffs have suffered with respect to
their property, business, trade, profession and occupation, all to their special damage in a sum
to be determined at the time of trial.
103. By engaging in the misconduct alleged above, CannLabs, Rifle Mountain, LLC,
of them, jointly or separately, intended to cause Plaintiffs injury or engaged in that misconduct
with the willful and conscious disregard for the rights of Plaintiffs. Defendants CannLabs, Rifle
inclusive, and/or each of them, jointly or separately, were aware of the probable dangerous
consequences of their misconduct and willfully and deliberately failed to avoid those
consequences, including subjecting Plaintiffs to cruel and unjust hardship, in conscious
disregard of Plaintiffs' rights. Thus, the award of exemplary and punitive damages is justified.
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FOURTH CAUSE OF ACTION
(For Negligence as to all Defendants)
105. Plaintiffs are informed and believe, and based thereon allege, that defendants
CannLabs, Rifle Mountain, LLC, Stewart, Murray, Cranford, Project CBD, Cantu, Lee and/or
DOES 1 through 20, inclusive, and/or each of them, jointly or separately, were negligent in
publishing the statements. With ordinary and reasonable care, Defendants would have
realized, or could have discovered, that the statements were obviously false, grossly libelous,
offensive, and damaging to Plaintiffs.
106. Plaintiffs are informed and believe, and based thereon allege, that Stewart,
and/or DOES 1 through 20, inclusive, and/or each of them, jointly or separately, were
negligent in publishing the preliminary testing results of the purported RSHO sample
submitted by Cranford. With ordinary and reasonable care, Defendant Stewart would have
realized, or could have discovered, that the preliminary results were obviously false, grossly
libelous, offensive, and damaging to Plaintiffs.
107. As a legal result of the negligent conduct of CannLabs, Rifle Mountain, LLC,
Stewart, Murray, Cranford, Project CBD, Cantu, Lee and/or DOES 1 through 20, inclusive,
and/or each of them, jointly or separately, Plaintiffs have suffered with respect to its property,
business, trade, profession and occupation, all to their damage in a sum to be determined at
time of trial.
FIFTH CAUSE OF ACTION — INTENTIONAL INTERFERENCE WITH
PROSPECTIVE BUSINESS ADVANTAGE
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109. Plaintiffs are informed and believe, and based thereon allege that Plaintiffs have
an existing prospective relationship with multiple companies regarding the use of its products.
110. Plaintiffs are informed and believe, and based thereon allege that Plaintiffs have
a probability of future benefit from their existing prospective relationship with multiple
individuals and companies.
inclusive, and/or each of them, jointly or separately, have intentionally interfered with Plaintiffs'
existing prospective relationship with multiple individuals and companies.
and/or each of their false and misleading publications to the public was wrongful and made
with Defendants' knowledge and intent.
113. Plaintiffs are informed and believe, and based thereon allege that as a result of
CannLabs, Rifle Mountain, LLC, Murray, Cranford, Project CBD, Cantu, Lee, and/or DOES 1
through 20, and each of their conduct, Plaintiffs have been injured and have suffered
damages in an amount to be proven at trial.
DEMAND FOR JURY TRIAL
Please take notice Plaintiffs hereby demand a trial by jury in this action.
PRAYER
WHEREFORE, Plaintiffs pray for judgment against Defendants, and each of them, as
follows:
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1. For general damages according to proof but in excess of One Hundred Million
Dollars ($100,000,000).
2. For special damages in an amount to be determined at trial and for interest thereon
at the legal interest rate;
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3. For punitive and exemplary damages in an amount to be determined at trial;
4. For costs of suit herein incurred; and
5. For such other and further relief as the court may deem just and proper.
/s/ PhiIli E. Koeh ke, APC 1/14/2014
Phillip E. oehnke, APC Date
Attorney for Plaintiffs
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1
EXHIBIT A
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Ailitlytis
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Laboratory Report
Client:
.ort Cranford
6525 Gtutpark Dr #370-236
Boulder CO 80301
Attn: Jason Cranford
i;rOfoottp 4684 LAB
Date giunpted:
Date Received:
Babb No:
LabOratory
Matrix:
Sample Name:
51/2014 12:00:00 PM
.5/R12014
31802
8141330903
Liquid Crab
RSHO Hemp OH
Results Units MRL Method
Anatysis Sent
Date Analyst Out Laboratory
aml: 21 INgfl EPA 3031
••s••••••.....alalms•••s•••••••s
•
5/16/2014 Tilf
195 well 0,05 EPA 200,7 5116'2014 WVS
<3 ppm 0,03 EPA 200.7 51162014 W VS 7
6,01 ppm Cf,02 EPA 200.7 5/1612014 WVS fl10,1 ppm 0.002 ETA 200.7 5/16/2014 W VS Cl
<0.05 ppm 0.0005 EPA 200.7 5/1612014 wVS
9.36 ppm 0.01 EPA 2U0.7 5116 12014 WVS
cf ppm 0_5 F2A 300.0 5/ 1312014 NS _1
<03 men 0.0U3 EPA 200.7 51161014 W VS
444 ppm 0,05 EPA 200.7 5/16/2014 WVS 1
214 PM 0-5 EPA 300.0 I.
511312014 INS -1
c.0.5 ppm 0.005 EPA 200.7 5116014 W VS .. 1
6.12 ppm 0,005 EPA 200.7 5/16/2014 4V VS L..1
5.71 ppm 0.1 EPA 300.0 5/13(2014 ,114& '1
10.4 ppm 0.0 t EPA 200.7 5i16/2014 WVS 1
26.6 ppm 0.02 EPA 200.7 5/16.'2014 W VS -1
c. 1 ppm 0.01 ETA 200.7 511612014 WVS 1
21.2 ppm 0.005 EPA 200.7 5116,2014 W VS "I
8.85 ppm 0,01 EPA 200.7 5/1612014 WVS 1
1.24 ppm 0.C.d5 ETA 200.7 5/162014 WVS
61$I ppm 0.01 EPA 200.7 5116/2014 WVS
77 13Pul 0.1 E,PA 200.7 5/1612014 WVS
32.6 ppm 0.005 EPA 2130.7 all 02014 wvs fl164 ppm 0.1 EPA 200,7 5/16/2014 WVS
1.77 ppm 0.001 EPA 200,7 5/16/2014 WVs E<2 ppm 0,02 EPA 200.7 5/16#2014 WVS C
54 ppm 0.005 EPA 200.7 5116.2014 wvs
Stewart Environmental Consultants LLC
3801 Automation Way, Suite 200 Fort Collins, Co 80526
Phone 970-228-5500 + Fax:970-228-4945
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www.cannabidial.com

Laboratory eport
on Cranford
6525 Gunpark Dr #370-236
Boulder CO 80301
Mtn: Jason Cranford
hilt' cats 46#4 LAB
Data Sampled:
Date Received;
Batch No:
LabOratory
Matrix:
Sample Name:
51,2014 12:00:00 PM
5/R/2014
31802
S14 13309'03
Uquid Crab
RSLIO Hemp Oil
Antityals Seat
Prg # 0 EPA 3031 --7/167-20-174
!u131110.05 EPA 2001 511612014 WVS Ii
ppm 0,03 EPA 200.7 5116'2014 WS'S 7
ppm 0,02 EPA 200.7 511612014 WVS :73
ppm 0.002 EPA 200.7 5/1612014 WV& Cl
ppm 0.0005 EPA 200.7 5/1612014
Eppm 0,01 PA 200.7 5/162014
ppm 0.5M 300.0 5113/2014
0.003 EPA 200.7 5/16'2414
0,05 EPA .200.7 5/16/2014
0.5 EPA 300.0 5/13/2014
(1.003 /IPA 200.7 5/1612014
0,0115 EPA 200.7 5/16/2014
0.1 EPA WS 5/13/20/4
0,01 EPA 200.7 5116/2014 WVS
0.02 EPA 200.7 5116:2014 WVS
0.01 EPA 200.7 5/1612014 WVS
0.005 EPA 200.7 5/16/2014 WVS
0,0/ EPA 200.7 5/161014 WVS
Q.0 6/2005 EPA 200.7 5/114 WVS
0.81 EPA200.7 5/14/2014 WVS
0.1 • EPA 200.7 5/16/2014 wys
0.005 EPA 200.7 .51612014 VAIS
1-:PA 720,7 5916/2014 VETS
0.001 EPA 2007 5/16/2014 Wvs
<2 0,02 FYA 200.7 5/164014 WV
PM'
s
54 0.005 EPA 200.7 5/162014 WAN
Analysk
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Calcium
Chloride
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Wolybienum
Nickel
Selenium
Sodium
Simutium
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tiac
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9,36
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US
114
63.9
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32.6
164
1.77
Results Units Mad Method
Date Anabot Om Laboratory
.=1•s•
y .
Environmental Consultants LW
3801 Automation Way, Suite 200 + Fort Collins, CO 80626
Oat Phone 970-226-5500 + Fax970-2264946
www.cannabidial.com

Genifer Murray
;
Hello Everyone: something has come to
attention and I feel I need to share it The
RSHO Real Scientific Hemp Oil was taken to
the CSU lab so they could do extensive
tests on it. The preliminary results:
The lab I sent FISHO to called me this
morning to warn me about consuming It.
They are not finished but already found
heavy metals, fluorides, chlorides and
bromine. They said it is dangerous to
consume and warned me not to let anyone
take it. They said it is not even hemp oil.
Please do not consume this product until we
have more information.
Corhnic Share
_ .
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lb
www.cannabidial.com

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INQUIRING MINDS WANT TO KNOW.'.. WHAT'S THE TRUTH ABOUT RSHO?
1.a berstory Report
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Above, lab results from a container of RSHO, or
what is also known as Real Scientific Hemp Oil.
With this many chemicals in the product, it has
to be scientific, right?
Above, lab results from a testing facility showing the
level of MC in this batch of RSHO is illegal as defined
by the DFA How can this be promoted as legal when
it clearly is not legal, qualifying as a Schedule I drug?
https://fbaln-spholos-h-a.alcarnsihd.nettnphdos-ak-xpf1M34.0-12/10295655 10154217823960035 8134689757638591011 n.loaTciFe086963d7f44b2c92f396931... 1/1
www.cannabidial.com

Laboratory Report
Date Sampled:
Date Received:
Batch No:
Laboratory BD:
Matrix:
Sample Name:
5/8/2014 12:00:00 PM
5/8/2014
31802
S141330903
Liquid Grab
RSHO Hemp Oil
:Prokali 4684 LAB
Analysis Results Units MRL Metltod
Analysis Sent
VOC 8260 Batch # 133 Batch # 0 EPA 8260 B 522/2014 WVS 0
.Acetotte <5 ppm 0,04 EPA 826013 5/22/2014 0
.Benzene <0.3 ppm 0,001 EPA 8260 B 5/2212014
.Bromobenzene <0,3 PPm 0.002 EPA 8260 B 5/22/2014 0
.Bromochloromethane <0.3 PPm 0,002 EPA 8260 B 5/2212014
.Bromodlehloromethane <0,3 PPm 0.002 EPA 8260 B 5122/2014 0
.Branoform <0.3 PP9I 0.002 EPA 8260 B 5/2212014 0
.Bromot»ethane <1.5 PPm 0.01 EPA 8260 B 5/22/2014
•Butmone, 2- (/1EK) <5 Plam 0,04 EPA 82603 5/22/2014
,Butylbenzene, n- 0.371 PMIL 0.002 EPA 8'260B 52212014 0
.Butylbenzane, sec- <0.3 PPm 0.002 EPA 8260B 5222014
,Butylbenzene, tort- <0.3 PPm 0.002 EPA 82608 5/222014 0
.Carbon Tenathloride <0.3 PPm 0.002 EPA 8260 B 5/22/2014
.Chlorobenzene <0.3 PPE9 0.002 EPA 8260 B 5/2212014
.ChlormIlbromotottbane <0.3 ppm 0.002 EPA 826013 5/22/2014 0
.Chloroethane <0.75 PPm 0.005 EPA 8260 B 5/22/2014
.Chloroform <03 PPm 0.002 EPA 8260 B 5122/2014 0
.C,bloromethane <1.5 ppm 0.01 EPA 826013 5/22/2014 0
.Chlorotoluene, 2- <0.3 PPm 0,002 EPA 8260B 5122/2014 0
.Ch lomtoluene, 4- <0.3 PPm 0.002 EPA 8260 B 5/2212014 0
.Dibromo-3-chloropropane, <0.75 ppm 0.005 EPA 8260 B 512212014 0
1,2-
,Dibromoothene, 1,2- <0.3 PPIn 0.002 EPA 826013 5/2212014 0
.Dibromomethane <0.3 ppm 0.002 EPA 82603 5/22/2014
,Diehlorobenzene, 1,2- <0.3 ppm 0.002 EPA 8260 B 5/222014 0
.Dichlombenzene, 1,3- <0.3 PPla 0.002 EPA 8260 B 5/222014 0
.Diehlombenzeno, 1,4- <0.3 PPm 0.002 EPA 8260 B 5122/2014
.Diehlorodlfluoromethane <1.5 PPm 0.01 EPA 8269 B 51222014
.Dlebloroethane, 1,1- <0.3 ppm 0.002 EPA 8260 B 512212014 0
.Dichloroethane, 1,2- <0.3 PPm 0.002 EPA 8260 B 5/2212014
.Diehloroethykne, 1,1- <0.3 P11111 0.002 EPA 8260 B 5/224014 0
.DichloroethyIene, cis-1,2- <0.3 PPm 0.002 EPA 8260 B 51222014 0
.Diehldroethylene, trans-1,2- <0.3 ppm 0.002 EPA 8260 B 5/222014
.Dicbloropropone, 1,2- <0.3 ppm 0,002 EPA 8260 B 5/22/2014
Vol Stewart Environmental Consultants LLC
. . /..05A 3801 Automation Way, Suite 200 • Fort Collins, CO 80526
Phone 970-226-5500 Fax:970-226-4948
www.cannabidial.com

Date Sampled:
Date Received:
Batch No:
Laboratory ID:
Matrix:
Sample Name:
5/8/2014 12:00:00 PM
5/8/2014
31802
5141330903
Liquid Grab
RSHO Hemp Oil
;Project# 4684 LAB
Analysis Results Units Ha Method
Analysis Sent
.Dichloropromme, 1,3- <03 ppm 0.002 EPA 8260 B 51222014
.Diehloroprvpane, 2,2- <0,3 PPm 0.002 EPA 8260B 5222014
,Dicbloropropene, 1,1- <0,3 PPm 0.002 EPA 8260B 5/22/2014
.Dichloropropene, cis-1,3- <03 PPm 0,002 EPA 8260B 5/22/2014 0
.Dicbloropropene, trans-1,3- <0.3 PPITI 0.002 EPA 8260B 5/22/2014
,Ethylbenzene <0.3 ppm 0,002 EPA 8260 B 5/222014 0
.Fluorotrichloromethane <0.3 PPm 0.002 EPA 8260 B 5/22/2014
.Hexachlombutadlene • <03 PPE 0,002 EPA 8260 B 5/2212014 0
asopropylbenzene <03 PPril 0.002 EPA 8260 B 5/22/2014
isopropyltoluene, 4- 2.35 PPm 0.002 EPA 8260 B 5/22/2014 Ci
.Merhylene Chloride <0.3 Plml 0.002 EPA 8260B 5/22/2014 0
.Naphthalene <0,3 ppm 0.002 EPA 8260B 522/2014 0
.Propylbenzene, n- <03 PPm 0.002 EPA 8260 B 5/22/2014 fl
.Styreno <0,3 ppm 0,002 EPA 826013 5/222014 0
.Tetrechlorethanc, 1,1,1,2- <0.3 ppm 0.002 EPA 8260 B 522/2014 0
.Tetrachloroethane, <03 PPm 0.002 EPA 8260 13 5/22/2014
.Tetracbloroethylenc <03 PPm 0.002 EPA 8260 B 5/22/2014 0
.Tolaene 0.786 ppm 0.002 EPA 8260 B 5/22/2014
.Trichlorobenzene, 1,2,3- <0.3 PPR) 0.002 UM 8260 B 5/22/2014 1.3
.Trichlorobenzene, 1,2,4- <0.3 PPm 0.002 EPA 8260 B 5/22/2014
Srichloroettene, 1,1,1- <0.3 ppm 0.002 EPA 8260 B 522/2014
.Trichloroethsne, 1,1,2- <03 ppm 0.002 EPA 8260 B 5/22/2014
.TrIchloroethylene <0.3 PPm 0.002 EPA 8260 B 522/2014 0
1,2,3-.Trichloropropane, <0.3 PPm 0.005 EPA 8260 B 5/2212014 0
.Trimedrylbenzene, 1,2,4- <0.3 ppm 0.002 EPA 8260 B 5/2212014 0
.Trimethylbonzene, 1,3,5- <0.3 ppm 0.002 EPA 8260$ 5222014 0
.Vinyl Chloride <0.3 PPm 0.002 EPA 8260 B 522/2014 0
Xylem, m,p- 0334 PPm 0.002 EPA 8260 B 5222014
.Xylene, o- <03 ppm 0.002 EPA 8260 B 5/2212014 0
_Digest, oil/total, Batch 21 Dig /I 0 EPA 3031 5/162014 '1T4 0
Aluminum 195 ppm 0.05 EPA 200.7 5/1612014 WVS 0
Antimony <3 PPm 0,03 EPA 200.7 5/1612014 WVS 0
Arsenic 6.01 PPm 0.02 EPA 200.7 5/1612014 WVS 0
Barium 103 WTI 0.002 EPA 200.7 5/16/2014 wvs
Beryllium <0.05 ppm 0.0005 EPA 200.7 5/102014 wvs
Boron 9.36 PPm 0.01 EPA 200.7 5/1612014 WVS 0
Bromide < PPm 0.5 EPA 3000 5/131'2014 INS 0
Tee Stewart Environmental Consultants LLC
3801 Automation Way, Suite 200 Fad Collins, CO
Phone 970-226-6500 F=970-226-4948
80525
www.cannabidial.com

Date Sampled:
Date Received:
Batch No:
Laboratory 3D:
Matrix:
Sample Name:
5/812014 12:00:00 PM
5/8/2034
31802
814 1330903
Liquid Grab
RSHO Hemp Oil
'IPT-oject1/4684 LAB
Analysis Results Units MRL Method
Analysis Sent
Cadmium <0.3 PPm 0.003 EPA 200.7 5/16/2014 WV8
Calcium 484 ppm 0,05 EPA 200.7 5/16/2014 WVS 0
Chloride 21.4 ppm 0.5 EPA 300.0 5/13/2014 1NS 0
Chromium <0.5 PPm 0.005 EPA 200.7 5/1612014 WVS
Copper 6.12 ppm 0.005 EyA. 200.7 5/1612014 WV S 0
Fluoride 5.72 PPm 0.1 EPA 300.0 5/13/2.014 MIS 0
Iron 10.4 PPm 0.01 EPA 200.7 5/16/2014 WVS 0
Load <2 ppm 0.02 EPA 200.7 5/1612014 WVS 0
Lithium <1 ppm 0,01 EPA 200.7 5/16/2014 WVS
Magneshun 21.2 PPM 0.005 EPA 200.7 5/16/2014 WVS 0
Molybdenum <1 PPm 0.01 EPA 200.7 5/16/2014 WVS 0
Nickel <0.5 ppm 0.005 EPA 200.7 5/16/2014 WVS
Selenium <2 PPm 0.01 EPA 200.7 5/1612014 WVS 0
Silica 277 PPm 0.1 EPA 200.7 5/16/2014 Wvs
Silver <05 PPm 0,005 EPA 200.7 5/1612014 WVS 0
Sodium 164 PPm 0.1 EPA 200.7 5/1612014 WVS 0
Strontium 1.77 Plan 0.001 EPA 200.7 511612014 %Ts 0
Tin <2 ppm 0,02 EPA 200.7 5116/2014 WVS 0
Zinc 54 ppm 0.005 EPA 200.7 5/16/2014 WVS 0
Results Approved by: 444 avtorifrunici--
Michael GismoWeb, Laboratory Ilanaga
Date Reported: 5/13/2014
V:, Stewart Environmental Consultants LLC
. . ,lir *II 3801 Automation Way, Suite 200+ Fort Collins, CO 80525
Phone 970-228-5600 • Fauc970-228-4946
www.cannabidial.com

Stewart Environmental Consultants, LLC
Engineering for Life
Laboratory Quality Control Report
Anions
EPA 300.0
Date of Analysis 10511312014
Blank
Analyte Tested Value (ppm) RC Acceptance Limit (ppm)
Bromide ND < 0.5
Chloride ND <0.5
Fluoride ND <0.1
Nitrate as N ND <0.1
Nitrite as N ND
Phosphate as P
ommin
ND <0.5
Independent Reference Material .. Quality Control Sample
Analyte Spike Amount (ppm) Observed And (ppm) Recovery Acceptance Limn
Bromide 1.00 1,02 102% 80% b 120%
Chloride 2.00 2.00 100% 80% to 120%
Fluoride 1.00 1.00 100% 80% to 120%
Nitrate as N 2.00 1.82 91% 80% to 120%
Nitrite AS N 1.00 0,70 70% 80% b 120%
Phosphate as P 3.00 3.01 100% 80% to 120%
Sulfate 4.00 3.92 98% 80% te 120% •
Blank Spike
A:Wyly Ref, Value (ppm) Recovery Acceptance Limit
Ekomide 1.00 1.03 103% 80% to 120%
Chloride 1.00 0.96 96% 80% to 120%
Fluoride 1.00 0.94 94% 80% to 120%
Nitrate as N 1.00 0,97 07% 80% lo 120%
Nitrite es N 140 0.79 79% 80% to 120%
Phosphate as P 1.00 0.98 98% 80% to 120%
Sulfate 1.00 0.99 99% 80% to 120%
<0.5
Blank Spike Duplicate
Anelyte Tested Vs use (ppm)
I Bromkie 1.03 1.07 4%
. __ _
<20%
Chloride 0.06 0.98 2% <20%
Fluodde 0.04 0.95 1% <20%
Nittate as N 0.97 0.99 2% <20%
Nitrite es N 0.79 0.82 4% <20%
Phosphate as P 0.98 1.04 6%
Sulfate 0.99 1.03 4% <20%
Deviation l Acceptance Limit
ND - Not detected.
www.cannabidial.com

02
:lois Date 05/14/14
*Ms Batch Number(s) • Digest Batch 21
Total Metals
EPA 2.00.7
Parameter
Arsenic
Sedum
cadmium
calcium
chromium
CoPPer
Lead
Manganese
Molybdenum
Nickel
Selenium
Silver
Zinc
Digest Blank
Tasted Values (pmn)
ND
NP
ND
ND
ND
ND
ND
ND
ND
ND
ND
ND
ND
Acceptance Limit (ppm)
<0,02
<0.001
0.003
<0.02
<0,005
<0,006
<0.02
<0.002
▪ 0.01
<0.006
< 0.02
<0.005
< 0.005
Eng!naming for Life
Independent Reference Material -Quality Control Sample
Parameter Tested Values (ppm) Reference Value (ppm) Recovery Acceptance Limit
Arsenio 1.01 1.00 101% 90% - 110%
Barium 1.01 1.00 101% 90%- 110%
Cadmium 0.98 1.00 98% 90%- 110%
Caldum 1.01 1.00 101% 90% - 110%
Chromium 0.98 1.00 98% 90%- 110%
Copper 0.99 1.00 99% 90% - 110%
Lead 0.98 1.00 98% 90% - 110%
Manganese 1.02 1.00 102% 90% -110%
Molybdenum 1.01 1.00 101% 90% - 110%
Nickel 1.00 COO 100% 90% • 110%
Selenium 1.02 1.00 102% 90% - 110%
Silver 0.98 1.00 98% 90% - 110%
Zinc 1.01 1.00 101% 90% - 110%
ND = Not detected
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Engineering for Life
Total Metals
EPA 200.7
Page 2 of 2
alyals Date 05/14114
alysis Batch Number(s) Digest Batch 21
• Digest Blank Spike
Parameter Spike Amount (ppm) Recovered Amt. (ppm) Recovery Acceptance Limit
ArseMc 0,40 0,440 110% 80% - 120%
Barium 0.20 0210 106% • 80% - 120%
Cadmium 020 0200 100% 80% - 120%
Calcium 4.0 4.81 116% 80% - 120%
Cnromlum 020 0,210 106% 80% - 120%
Copper 0.20 0210 105% 80% - 120%
Lead 0.40 0.410 103% ao% - 120%
Manganese 0.20 0210 105% 80%- 120%
Molybenum 0.40 0.430 los% 80% - 120%
Nickel 020 0200 100% 803 - 120%
Selenium 0.40 0.420 105% 80%. 120%
Silver 0,40 0.330 83% 80% - 120%
The 020 0210 105% 80%. 120%
Blank Spike Duplicate
Parameter Tested Values (ppm) Deviation Acceptance Limit
Arsenic 0.440 0.450 2% <20%
.13arkun 0.210 0.220 6%
Cadmium 0.200 0.210 6%
Calcium 4.81 416 3% <20%
Chromium 0.210 ' 0210 0% <20%
Copper 0.210 0210 0% <201i
Lead 0.410 0.420 2%
Manganese 0.210 0.220 6% <20%
Mblybenum 0.430 0.450 6% <20%
Nickel 0.200 0.210 5% <20%
Selenium 0.420 0.440 6% <20%
Sliver 0.330 0,340 3% <20%
zhe 0.210 0.220 5% <20%
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message
From: Michael Glavanovich<michael.glavanovich(iv,gmail.com>
Date: Thu, Jun 5, 2014 at 1:01 PM
Subject: Re: FW: Cranford
INFAIIIIMOraltafffifallaNNININWINawar
MIL
The samples were received in our lab from Jason Cranford.
Apparently the samples went through three different hands
before we received them. Not that this is in an of itself bad, just
not ideal. We were asked to test for volatile organic compounds,
metals, and pesticides. There was insufficient volume to test for
pesticides, so we were able to eliminate that test. The volume of
sample, about 1-2mL was small for the remaining two analyses,
but we went ahead with it. The analysis for volatile organic
compounds is straight forward. The analysis for metals is
complicated in that the sample must first be oxidized with
potassium permanganate and sulfuric acid, a process called "wet
ashing". Subsequently the oxidized sample is treated with nitric
and hydrochloric acid to solubilize any metals that may be
present. In the oxidizing of the oils, a significant background of
interference is created that must be accounted for. Without this
correction the sample will look like it is testing positive for some
metals. Occasionally a client will call and ask for the report
ahead of our normal processing schedule, and this happed to be
the case. Sadly data went out before the metals background
correction was made. A day or two later, it was noticed that this
happen, the corrections were made and the corrected report was
sent to the client.
While this occurence is rare, it is not unheard of. All the follow-
up procedures were made: phone call, email, and a new report.
To go forward, I recommend additional testing for metals. In an
ideal world, about 3-4 mL of oil is preferred. This way we have
sufficient amount to run a duplicate analysis. I have attached a
chain of custody should you wish to test fresh oil with our
laboratory.
Kind regards,
Michael Glavanovich
Lab Manager
www.cannabidial.com

vg4 Sample Receipt Checklist
STEWART ENVIRONMENTAL CONSULTANTS, LLC.
3803. Automation Way, Suite 200, Fort Crams CO 80525
cirenrirs,Con trtoria4 initials: >ill Date: tight( Time: I 31.5 C MsT/mur
To be filled out by laboratory courier, If applicable:
. .
Were samples rebievad bya taboratTY.99uricrrY. .
2 .Were.sarppIesphiceprin a refrigerated state upon fetrieyalt _
Courier Millais: Date: Time'
To be filled out by laboratory samplo receiving:
3 Sh0.9118 95.e.kier./.41019r
4 Chain of Custo4yfC09) Eresent?
5 Sample bottles Intact? •
samples onblue-ioe
7 P.rnEles .. •
8 Samples received within 4 hours of samplim?
1
9 Record temperature of sample babies within cooler with Infra-red thermometer.
{C; tntainer#141‘4rd I
10
11 COO complete, ierztale, signed end dated?
12 bPili.9:?.9°P1PICrte end VIA? ......... .
13 CDC the mementwith sample bottle labels? •
14 _Pmr container tiled Tor anatma restiaated?
15 Sample! requIring.prasentaffoqRreeerveti.aorrerge _
16 Sufficient sample volume for analyses requested? •
17 Samples within holdiNtimes for analyses requested? •
18 8911.0.PsfPritOna!!!1.1008.0199.grefteeall°,109acKl..1
(VOC, TVPH, BTIDC, Ethanol, Radon) If no, size of bubble: < green pea,
• If no, document on Chain of Custody.
(Pavved..9.Pd clanYS? *
_> green pea
Notes.:
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PROJECT
MIDprojectcbd.org
HEMP OIL HUSTLERS
A Project CBD Special Report on
Medical Marijuana Inc., HempMeds & Kannaway
By Aaron Miguel Canto
October 14, 2014
© 2014. Project CBD. All rights reserved.
www.cannabidial.com

Project CBD Special Report Hemp Oil Hustlers
Forward by Project CBD
A half year ago, Project CBD assigned a writer to investigate and report on Medical Marijuana Inc., a
penny stock umbrella company that markets "hemp oil" products infused with cannabidiol (CBD), a
medicinal component of the cannabis plant. Originally we had hoped to shed light on the complex
financial machinations of Medical Marijuana Inc., a subject that had been addressed by a few stock
market analysts but not by journalists in general interest publications.
Project CBD was poised to publish Aaron Miguel Cantes research when we heard complaints from
several sources that people were getting sick, in some cases "violently ill," when they ingested "Real
Scientific Hemp Oil," Medical Marijuana Inc.'s flagship product We decided to delay the release of
our report until we had a chance to look into whether there was any truth to these allegations.
Our investigation proceeded in an unanticipated direction, involving analytical lab tests, hemp oil
production tours, and a crash course in scientific data regarding toxic solvents, heavy metals, and
other contaminants. We have presented our findings in this report.
These findings should not be construed as justification to attack the medical marijuana community
or impose ever-more capricious restrictions on patients and providers. Nor do we wish to cast
aspersions on companies that are working with industrial hemp to create CBD-rich products. We
believe that industrial hemp is not an optimal source of CBD, but it can be a viable source of CBD
if certain hemp cultivars are grown organically in good soil and safe extraction and refinement
methods are employed.
2014 marked the first year that industrial hemp was grown legally (albeit for research purposes) in
the United States in a long time. There's no doubt that the surge of national interest in CBD has
been a key factor in catalyzing the rebirth of industrial hemp in the United States. Project CBD
maintains that federal law should be changed to facilitate CBD production from the most prolific
natural source of cannabidiol available—CBD-rich cannabis with little THC. This would entail
legalizing the whole plant, not just a single compound or a single strain.
Project CBD wishes to acknowledge the following people who helped in various ways with this
report: James Neal-Kababick of Flora Research Laboratories, Dr. Noel Palmer of PhytaTech, Daryl
Bornhop, Jahan Marcu, Brandon Krenzler, Jason Cranford, Felicia Carbajal, Brittany Warrior,
Michael Hayes, Vanessa Waltz, Michelle Sexton, Fred Gardner, Josh Hartsel, Chris Boucher, Regina
Nelson, Angela Bacca, and Cerilia D'Anastasio and Rick Carp of the Emerging Journalist Fund.
Martin A. Lee
Director, Project CBD
© 2014. Project CBD. All rights reserved.
www.cannabidial.com

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