Medical Marijuana, Inc. (OTCMKTS:MJNA) Files Quarterly Report, Drops

Many traders eagerly anticipated the latest quarterly filing of Medical Marijuana, Inc. (OTCMKTS:MJNA) and now it is out. In fact it has been since last Thursday, but that didn’t stop the stock from slipping almost 15% late last week.

The report didn’t have the magical revival effect on MJNA stock that many probably hoped for. The update the company published on April 4 spoke of increasing revenues from overall operations. However, the company logged gross income of $2.1 million, that shrunk to $570 thousand net after expenses had been factored in. Then comes the ‘extraordinary item’ of the report – $6 million in income, recorded as part of the transaction with CannaVest Corp. (OTCBB:CANV).

If we disregard the extraordinary income, whose worth is rather questionable anyway, considering CannaVest was virtually a shell before the PhytoSphere deal, MJNA is left with a net income from actual products that had shrunk about 50% year-over-year – hardly the bright projections listed in early April forecasts.

Share information has also been updated. MJNA is now inching closer to its authorized share number, with 935 million common shares issued and outstanding, out of 950 million authorized. Just three months earlier that number was 808 million, as per MJNA‘s yearly report.

The shaky price action in the wake of the filing implies that people weren’t exactly thrilled to see the figures in the report. The numbers seem to simply fall short of reflecting the buoyant optimism MJNA displayed over the quarter, in terms of operational results and revenues generated.

Unless CANV stumbles onto a pile of money, the following quarters will see more ‘extraordinary item’ stock payments worth millions on paper. Hopefully, by the time their next report is due MJNA will have managed to deploy its European operations and establish some kind of profitable working relationship with newly conscripted partners, so that it will have something more to show in the filing.

The stock is currently red in early trading, going for $0.15 per share, almost 5% down.