Marijuana Company of America Inc. Announces Shareholder Letter to Update Interested Parties on the Company’s Current Strategies - Seite 2

Today, we are committed to providing CBD products that improve the lives of consumers, elevating hempSMART as a trusted legacy brand. The marketing philosophy of previous management is gone. Our new strategy is to leverage the credibility of our products to pursue international expansion and reach bigger audiences.

Debt Reduction Strategy

Of greater importance than a shift in marketing is the change of culture. Previous management was known for selling stake in the Company, the optics of which were bad for the market. We want to assure you that under current management, we, as the current management, have a minimal buy/sell history and the frequent selling of shares held by the former executive team are not part of our game plan.

We have salvaged key assets of the Company, pivoting our sales strategy from capital-intensive affiliate marketing, which was initially used to raise brand awareness. At the time, the MLM structure made sense. However, it carried a heavy price tag.

Because of this model and investments in several since-failed ventures, my appointment as CEO carried with it $3.5 million of toxic, convertible debt. The Company is still laden with that debt, but we see it as an opportunity to change gears and demonstrate our commitment to the future of MCOA. Though this debt affects our ability to raise more capital, we have successfully cycled through nearly half our legacy debt, keeping MCOA out of bankruptcy and making sure it remains relevant to the investment community.

Our quarterly filings demonstrate our ability to reduce debt. As you’ll see, under new management, MCOA’s debt has gone only one direction: down.

Addressing Concern of Capital Structure

We also want to address concern that our fundraising initiatives will contribute new convertible debt and affect share prices. In short, we have transitioned from debt financing to equity financing, which is less dilutive to our shareholders.

We believe that a health capital structure is built with equity, not debt. Thus, we are pivoting away from big debt financing and toward equity financing, which can be seen by the recent S1 Registration statement.

See our filings here: https://www.marijuanacompanyofamerica.com/investors/sec-filings.

Outlook for 2021

Our primary goal in 2021 will be to expand our market reach into South America and Europe, and this is an initiative we have already set in motion. We see significant opportunity for our hempSMART CBD products in these markets and will utilize existing business contacts and relationships to bring this plan to fruition.