MaryJane Group Inc (OTCMKTS:MJMJ) Dilutes 200% Within Nine Days
Despite a curious gap up and a brief morning run, on Friday the stock of MaryJane Group Inc (OTCMKTS:MJMJ) ended the session another 13% in the red. After 142 million shares changed hands, the price stopped at $0.0033 per share by the bell.
The company put up an update to the 8-K filing that went up in the morning hours on Friday, which disclosed what exactly has been going on with MJMJ‘s share structure over the past few months. The original filing had a typographical error in it, but a significant one. As we stated in our previous article, the number of shares issued over the past couple of months is indeed 350,000,000 and not just 350,000 as the original 8-K listed.
In light of this new information, the company may have a hard time mustering a new push up the charts, despite the recent announcement of MJMJ‘s CannaCamp. The notion of opening the first “cannabis resort” in the U.S. looks appealing, especially to those who still believe that pot stocks will one day make the big time. However, with minimal cash on hand and with its common stock ballooned from 21 million shares in March to 376 million as per this new 8-K filing, investor interest in the potential of the CannaCamp business will have a lot of red flags to overcome.
MJMJ had 126 million shares as of June 8.
The 350 million new shares issued over the past two months came at a average price price of $0.001 – a good 70% below the current market price of MJMJ. Those not deterred from the fact that the company diluted its common stock 1600% between March and June may be in for an interesting ride in the coming weeks and months. MJMJ‘s authorized common shares are capped at 1 billion.