Medical Marijuana, Inc. (OTCMKTS:MJNA) – Business As Usual
After a heated run up that brought the stock price an increase of roughly 40% over three sessions, yesterday Medical Marijuana, Inc. (OTCMKTS:MJNA) reversed its chart movement and closed the day nearly 5% down.
The level of trader support was tested once again and it may be that once again, short-term traders chose to sell on the air bubble provided by the price surge. The rabid cheers of overenthusiastic supporters of the company who were predicting the usual highly improbable price targets of $1.00 by the end of this week proved futile once again.
The other point of interest that caused heated discussion among traders was whether MJNA will manage to uplist to OTCQX. MJNA has allegedly submitted all the needed documentation for the uplisting, after additional papers were requested by the Depository Trust and MJNA supplied them in early May.
Even though there is no definitive information on the exact level of progress with uplisting approval, MJNA looks like it may have dodged a bullet by managing to contain its lowest closing price at $0.10 last week. The OTCQX listing requirements include having a minimum bid price of $0.10 at the close of business for the preceding 90 market days. This, of course, means that MJNA will need to maintain its price level above the $0.10 line in the coming weeks if the uplisting is going to happen at all.
CannaVEST Corp. should have already made its third due installment of the payment for the acquisition of the PhytoSphere assets from MJNA. The next quarterly filing will contain more details on how the payment was made but considering the due sum is $8 million, it’s hard to imagine CannaVEST paying with anything but more stock, as with the previous two installments.
MJNA generated a dollar volume of almost $720 thousand yesterday. Stocks with comparable volumes were Petrosonic Energy, Inc. (OTCMKTS:PSON) who dropped 7%. American Graphite Technologies, Inc. (OTCBB:AGIN) commanded even higher dollar volume of almost 950 thousand but closed the session 8.6% in the red.
