Back in March the stock of MediJane Holdings Inc. (OTCMKTS:MJMD) managed to briefly grab the attention of the market after they did a name and ticker change in order to join the marijuana industry. With the hype still going strong at the time investors quickly flocked to the stock and pushed it above $1.5 per share. In our previous article about the company though we warned you that MJMD are surrounded by red flags and even more importantly they had the perfect set-up for a future pump.
The past involvement of the company with the lawyers Luis J. Carrillo and Wade D. Huettel from the now notorious Carrillo, Huettel & Zouvas, LLP should be enough to put any investor on his guard. Last year both Mr. Carrillo and Mr. Huettel were charged by the SEC as part of an international market manipulation scheme.
The former CEO of MJMD
– Ms. Irma Colón-Alonso was once the CEO of another pennystock – Dephasium Corp (OTCMKTS:DPHS
was the target of a paid promotion last year with devastating results for all those who believed the words of the pumpers. Admittedly Ms. Colón-Alonso resigned from her position before the start of the pump and on February 27, this year she also resigned from all of her positions in MJMD
So with a new business plan and entirely new management team the company should have a clean start. Well, not exactly. Back in 2010 they sold 3, 3 million shares for just $0.01 each which turned into 33 million thanks to the 10-for-1 forward split performed last year. The people holding these shares stand to gain million at the current market prices of the stock and thus would benefit the most from the increased awareness.
And yesterday the promotion for MJMD
officially started with the creation of a landing page touting them. Reading the disclaimer reveals quite an interesting fact – shareholders of MJMD
have paid $200 000 for the campaign with the sole intention to sell their shares. For now there have been no email alerts but that is more than likely going to change in the near future.
Promoted marijuana stocks are one of the riskiest choices for investment. Just in the past three months the SEC has suspended the stocks of Petrotech Oil & Gas Inc (OTCMKTS:PTOG
), Advanced Cannabis Solutions, Inc. (OTCMKTS:CANN), Aventura Equities (OTCMKTS:AVNE), Growlife, Inc. (OTCMKTS:PHOT
), Cannabusiness Group, Inc.(OTCMKTS:CBGI