Medical Marijuana, Inc. (OTCMKTS:MJNA) Locked in a Slide
The price surge that Medical Marijuana, Inc. (OTCMKTS:MJNA) went through in the second half of January has now ground to a halt and the ticker is slowly sliding down the charts. Yesterday MJNA closed red for the third time in a row, dropping 6%, now down almost 20% from the point where its green run was cut short.
There have been no new press releases coming from MJNA in the last few days but traders are getting rather excited about a piece of media coverage. The piece in question was published by ABC News and touched on Tripp Keber’s Dixie Elixirs edibles in the context of the customer rush for marijuana-infused products in the state of Colorado.
The excitement this piece provoked is largely disproportional to the warmth of the relationship between MJNA and Dixie. Mr. Tripp Keber was formerly part of the MJNA board but he quit this position in early 2013. As Mr. Brochstein pointed out in a piece on MJNA dating back to December 2013, Dixie actually went so far as to file a preliminary lawsuit against MJNA for ‘breach of contract’ back in the summer of 2013, flinging a number of accusations in it, so it’s safe to say that the two companies are not exactly on good terms at the moment.
MJNA‘s press releases have for a long time now been focusing on HempMedsPX, its master distributer and marketer. MJNA announced $1.31 million in HempMeds product-sale revenues for Q4 of last year, indicating massive percentile growth. Another highlight was a deal secured once again through HempMedsPX for the sale of $1 million worth of anti-aging CBD-rich products to an unnamed ‘home-based business’ organization. The first of those numbers should be reflected in MJNA‘s due annual report and will indeed boost confidence in the company as MJNA logged half of that in sales revenues across all its portfolio companies in Q3.
With the price having climbed quite high, it’s uncertain where MJNA is heading next but it looks like the company may need another optimistic press release to put an end to its current red streak.