Medical Marijuana Inc (OTCMKTS:MJNA) Sails Below Four Cents
It’s been a month-long struggle but Medical Marijuana Inc (OTCMKTS:MJNA) finally gave in. The company’s stock price sank under the four-cent dividing line which served as a bottom of sorts during the last six weeks. Yesterday MJNA closed 5% down on its heaviest volume for the past month, hitting $0.038 per share by the bell.
The company put up more optimistic news only yesterday. An early morning PR announced that HempMeds signed a 12-month sales agreement for “over $2,500,000”. The other party under the contract is, somewhat predictably, not named. HempMeds’ partner is described as a “major new U.S. manufacturer”, whatever that means.
Despite this upbeat announcement and the information that 2 months worth of product has already been sold and shipped by HempMeds, MJNA barely peeled off from its previous close, churned heavy volume in the first hour of trading, then took a nasty slip ahead of the closing bell, to land at its newest 52-week low. If investors can’t get excited about a multi-million dollar deal, even if the company’s partner is a mysterious entity, confidence may be more shaken up that it initially seemed to be.
MJNA published its latest quarterly report just over a week ago. The short version of the balance sheet is as follows:
- $475 thousand in checking/savings
- $4.4 million in current liabilities
- $2.2 million in quarterly sales
- $5.6 million in quarterly net loss
There’s little to like here, with sales shrinking QoQ and net loss increasing more than fivefold. Perhaps the most striking thing about the report is that Kannaway, MJNA‘s early 2015 acquisition, is recorded as a $100,000,000 asset, yet it seems to have failed to affect the company’s bottom line in any meaningful, positive way.
Whether piercing below $0.04 per share means that MJNA will need to find a new bottom before it settles or enough people will see this as an opportunity to buy the ever-popular “cheapies” remains to be seen.
