Where is MaryJane Group Inc (OTCMKTS:MJMJ) Headed?
Yesterday’s session introduced more turbulence into the already hectic chart movement of MaryJane Group Inc (OTCMKTS:MJMJ). The stock was making a second attempt to push up but that was cut short by a squelching 41% drop yesterday. MJMJ slid back to $0.0034 per share after 167 million shares changed hands.
We have been actively covering the company since the day it spiked over 480% on June 9, driven by a press release. MJMJ announced opening the first “cannabis resort” in the U.S. on the premises of the Wilderness Trail Ranch in Colorado. Now called the CannaCamp, the resort seeks to offer unique services and activities tailored to cannabis lovers, splicing a bit of luxury in the rugged camp environment. One curious novelty mentioned is a ‘cannabis concierge’ on site, offering advice on strains and special discounted rates from dispensaries partnering with MJMJ. Cannabis will not be sold on site, “for legal purposes”.
People were obviously excited enough to buy MJMJ up to one cent per share but since the price hit that level, things have not been going too well. One might choose to ignore the fact that before issuing new discounted convertibles to notorious toxic financier Magna Equities, MJMJ had $325 in cash and had generated $2 million in net loss between August 2014 and January 2015. Even then, there’s the very legitimate question about the company’s share structure.
As we wrote in previous articles, MJMJ diluted its common stock by a mind-boggling 500% within the space of three months, going from 21 million outstanding shares reported in its last 10-Q to the 126 million shares listed in its latest filing at the moment – a Schedule 13G. The 500% is bad enough, but this may not be the end of it, seeing how MJMJ trades in volumes greater than those 126 million shares. Yesterday’s volume was 167 million, with 219 million shares traded in a single session on June 10. Investors should be able to figure out on their own how likely it is that the company is still sitting on just 126 million outstanding common shares.
