Anastas Gegov

Medical Marijuana Inc (OTCMKTS:MJNA) Surges On High Volumes

by Anastas Gegov May 4, 2016

Medical Marijuana Inc (OTCMKTS:MJNA, MJNA message board)’s movements in the charts haven’t been very consistent after the slide that the company endured in December. Late February saw MJNA try to regain some of the value it had lost, but the ticker began swaying in both directions pretty fast.

 

This isn’t something very surprising when you consider the massive market cap that MJNA holds. The company is valued at $125 million which is quite a lot, especially considering the contents of its balance sheet. MJNA recently filed its financial report for the fiscal 2015 and it contained the following numbers of prime interest.

 

  • cash: $240 thousand
  • current assets: $13.51 million
  • current liabilities: $4.72 million
  • revenues: $9.21 million
  • net ordinary loss: $3.64 million

 

The report shows us that MJNA’s cash on hand has significantly dropped, while the company keeps giving overly-inflated valuations of its subsidiaries. Meanwhile, the revenues have dropped by 36.57% compared to the previous year, while the losses have increased significantly.

 

There is also the fact that MJNA issued nearly 1.1 BILLION shares in the fiscal 2015, raising the outstanding share count to 2.86 billion. The dilution has been truly heavy in the past year, but that doesn’t seem to bother investors that much.

 

Some positive news from yesterday even managed to push MJNA 10.63% up the charts and we saw the ticker close at $0.0437. A total of 12.07 million shares changed their owners, generating $513 thousand in daily dollar volume, the biggest in quite a while.

 

MJNA has held to its momentum from yesterday and is already 6.41% in the green as of the writing of this article. Still, you should consider the inflated market cap, the not-so-good financial state and the dilution before making any investment decisions.

Comments 1

1. Guest
May 04, 2016, 12:49PM

Quotes MJNA is likely up today on yesterday's news, which was written in a way that many interpreted as MJNA's CEO meeting with Mexico's president, when in reality, CEO Stuart Titus is meeting with an activist from Mexico, Raul Elizalde, who is the father of a little girl, Grace, with Lennox-Gastaut syndrome, a form of epilipsy.

Ironically, in August of 2015, while Grace became the first patient in Mexico to be treated with CBD, the CBD is in the form of GW Pharma's Epidiolex, but MJNA doesn't mention that.

In addition, despite many PRs about being able to import RSHO-X for the treatment of patients in Mexico, so far, only two permits have been issued, for two girls that MJNA constantly mentions in its press releases, Maria-Paula and Alina.

MJNA may be the first "hemp-based" CBD in Mexico, but in the U.S. RSHO is considered a food product, whereas Epidiolex is a pharmaceutical drug.

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