Ebola.com Sells for $50K and Stock in Company that Use To Be a Tanning Salon Business

It was reported today by Domain Investing that the owner of Ebola.com, Jon Schultz, has struck a deal to sell the domain to the Weed Growth Fund, for $50,000 in cash and 19,192 shares of Cannabis Sativa, a Mesquite, Nevada-based recreational and medical marijuana company that trades on the OTC market at $8.50 a share. That brings the total price in today’s prices to $213,132. But there’s a catch.

The stock can’t be sold for 6 months. The “Weed Growth Fund” is either an ever evolving fund searching for the next great thing or a shell for something that investors haven’t figured out yet. According to Time Magazine, “As recently as September of this year, Weed Growth Fund was known as Ovation Research, which according to this BusinessWeek profile was in the business of distributing “stainless steel cookware products for retail and wholesale customers in North America.” Then, on Sept. 19, the company filed with the Nevada Secretary of State changing its name to Weed Growth Fund” The CEO of Cannabis Sativa is non other than former New Mexico Governor and candidate for President in the Libertarian party. And best of all he thinks marijuana can help Ebola according to this Interview on Business Week.

A reader of DomainInvesting.com, Andrea Paladini did a little look into the past of the company and gave this comment

“Actually IMHO this “big deal” is less big than you think.
The reason is quite easy to explain: Cannabis Sativa, Inc. is a thin-volumes OTC BB stock, whose shares are very easy to manipulate, since it’s very illiquid (check the charts).
Furthermore, CBDS is a recently established loss-making company with an easy to replicate business model (at a quick glance I see little or no competitive advantages over other players in this now “highly populated” business) and virtually no revenues: they closed 2013 with a turnover of 1,000 USD and net losses for over 32 mln USD, 1H 2004 closed with sales for 1,672 USD and a loss of over 178,000 USD.
As of 1H 2004, CBDS main assets are represented by goodwill for approx 13 mln USD, which was the results of a merger with a Nevada Corporation called Kush, and intangibles for over 3 mln USD (essentially coming from the Kush merger, plus the value attributed to the domain CBDS.com …).
Tangible book value, as of 1H 2004, is negative.
It’s a weird company coming out from a series of mergers and reorganizations, you can find more details here: http://www.sec.gov/Archives/edgar/data/1360442/000144586614001059/cannabissativa10q08182014.htm
As far as I see, these shares could be easily have no value … not more than a cloud of smoke … …
One of the “funny” things is that “The Company’s previous operations were in operating a tanning salon business.” … be aware and try not to get burned … lol “

My first thought was great job. I even put that in the comments over at DomainInvesting.com. But the more information that came out about the purchasing company, the more I realized he just became owner of a company that appears shadier than the pictures of Jon Schultz which I previously said looked like Mr. Burns (new picture has him more like a mortician now). Schultz was being blasted for asking for so much for the name and now he goes and sell it to this company? It doesn’t help his image. And how much went to Ebola relief? None. Is he required to give money to an Ebola relief fund? No, but it sure would have been a nice gesture and would have helped his image. If he realizes a gain in his stock he still may. But judging the buyer by their history and their numbers, there’s a good chance there won’t be much money beyond the $50K. I’ve changed my mine, bad sale to a shady company.