Medical Marijuana, Inc. (OTCMKTS:MJNA) Plows to New Lows
In yesterday’s trading Medical Marijuana, Inc. (OTCMKTS:MJNA) logged another disappointing session and burrowed to a new low on the charts. The price stopped 6% down, at $0.068 per share after some 6.2 million MJNA shares changed hands.
It seems the fact that MJNA has now been oversold for a few days does not deter people from selling more shares and pushing the price even lower. The company is at a brand new 52-week low, is late with its annual report and is stamped with a “Stop” sign and “Pink No Info” on OTC Markets, and to top it all off it seems former board members of the company have filed a lawsuit claiming fraud in a merger deal that resulted in change of controlling interest in MJNA.
The San Diego Reader published a piece on the lawsuit, quoting a publication by Courthouse News Service, which explains the situation in even greater detail. According to the report, David Tobias and William Martin claim that a deal proposed by Michael Llamas went sour and many of the conditions were not fulfilled. While CannaBank – an entity founded by Llamas – did receive controlling interest in the company, the two former board members never received their promised shares and the assets they got as part of the merger deal were under a “storm of litigation”.
Tobias and Martin name both Llamas and Michelle Sides as defendants, levying a huge number of accusations including fraud, conspiracy, unjust enrichment and violation of the U.S. Exchange Act, among others, Courthouse News Service reports.
The complaint has been filed by a representative of the Phoenix, AZ based McGee Law Firm.
Allegations of professional misconduct and a new lawsuit brewing is the last thing MJNA needed at the moment, given its troubled chart standing and the problems it has with getting its report out. The annual has the potential to at least stop the slide the company is going through, however, the last time MJNA‘s annual was that late was back in 2009, so there’s no real way to know when the filing is going to come through.