Todor Pichurov

Medical Marijuana, Inc. (OTCMKTS:MJNA) Stuck in a Rut

by Todor Pichurov April 16, 2015

Yesterday's session saw Medical Marijuana, Inc. (OTCMKTS:MJNA, MJNA message board) turn red again, after a single green session on Tuesday. The stock generated its heaviest daily volume for the past three months, shifting 9.2 million shares. The closing bell saw MJNA land at $0.081 per share – a new 52-week low.

It looked as though the stock is just about ready to move up, having been oversold for a couple of days, and scraping ever newer lows – a favorite point for long-term believers to grab even more shares of their pot stock of choice, but things turned out differently. Just like on Monday, MJNA was very volatile yesterday, swinging between $0.0899 and $0.071 intra-day.

A part of that weak performance can be attributed to the fact that MJNA has still not published its annual report. The filing was due by the end of March and with MJNA being a pink sheet that delays filings on a regular basis, it was expected that a notification of late filing would be put up. However, the extension granted expired on April 13. The company's OTC Markets page still shows up as Pink Current but investors are hardly ecstatic with the missed deadlines.

Once the report comes through, it will shed some light on the company's performance over the last quarter of 2014. Q3 ended with net ordinary loss of $834 thousand, before factoring in extraordinary income from a joint-venture agreement that landed MJNA 2 million Livewire Ergonomics shares. The shares were priced at $0.58 each and were recorded as extraordinary income in the balance sheet, allowing MJNA to report a positive bottom line.

MJNA just dropped a fresh press release, informing that a company subsidiary signed a security contract for the Seattle Hempfest event, among others. 420 is just around the corner, this time on a Monday. Previous PR from MJNA has been mostly focused on Kannaway and its reportedly great performance on the sales front. The network marketing company with a heavy focus on hemp and derivatives was announced as MJNA's latest acquisition target back in January.

Comments 6

1. Guest
May 04, 2015, 10:15AM

Quotes Lynda Maude Logan would not approve, N o R m A n

2. Guest
April 30, 2015, 01:34PM

Quotes Illegal TRTC MJ Laboratory & IVXX Products !

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3. Guest
April 16, 2015, 02:43PM

Quotes Post on 4/20 won't make results better.

While the overall revenue number for 2014 will sound good, that will be because 1Q and 2Q were pretty good, but MJNA's business fell apart once CannaVest dumped HempMeds as its sole online distributor.

I expect the 4Q/14 revenue to be pretty bad, with a pretty good loss.

I also expect to see some share dilution, which will only be a prelude to the massive dilution spawned by the KannaWay "acquisition".

4. Guest
April 16, 2015, 02:14PM

Quotes They'll post on 4/20

5. Guest
April 16, 2015, 01:22PM

Quotes Forget my prior comment on the automatic extension period ending on 4/15. OTCMarkets required the filing by 4/1/15, so the automatic extension requires filing by Midnight PDT on 4/16.

6. Guest
April 16, 2015, 10:28AM

Quotes Through its Wellness Managed Services (WMS) subsidiary, MJNA owns 50% of MPSI Security. It's not a lucrative business, however, as in 3Q/14, WMS received about $72K in revenue via MPSI, and less than $7,000 in net income.

Regarding the late 2014 annual report and the Notifiction of Late Filing, the filing itself said that MJNA planned to file by April 13, but since the automatic extension is actually 15 days, MJNA became overdue when they didnt' file on April 15.

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