Medical Marijuana Inc (OTCMKTS:MJNA) has been on a serious roller coaster ride over the past week of action. The important idea here may be centered on the fact that the week in question is a 5-day period straddling the calendar flip to 2017. The stock had a distinct lack of sellers in the final days into year end, and then well more than its share of sellers just into the new year. One theory here might be a major position taken off the table for very large gains (perhaps established early on in 2016 in the $0.03 area). One might hypothesize that someone wanted out badly, but didn’t want to record the capital gains in fiscal 2016 for tax reasons. With no clear catalysts, a single large seller can often start a landslide cascade in a micro-cap play such as MJNA.
In any case, the stock has stabilized in the $0.15 area, and the overall picture is still relatively rosy when looking through a wide-angle lens. The chart shows 25% piled on for shareholders of the stock during the trailing month. Market participants may want to pay attention to this stock. MJNA has a history of dramatic rallies. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed more than 170% beyond what we have been seeing over the larger time frame. Since we last covered the name in mid-December, the stock has moved a bit more than 22% higher.
Medical Marijuana Inc (OTCMKTS:MJNA) trumpets itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high-value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries.
The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry. It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products.
In addition, MJNA provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry. Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products.
Medical Marijuana Inc. is the first publicly held company vested in the medical marijuana and industrial hemp markets.
According to company materials, “The company is comprised of a diversified portfolio of products, services, technology and businesses solely focused on the cannabis and hemp industries. These products range from patented and proprietary based cannabinoid products, to seed and stalk or isolated high value extracts specifically manufactured and formulated for the pharmaceutical, nutraceutical and cosmeceutical industries. The Company’s services are extensive and varied, ranging from medical clinic management to the capitalization and development of existing industry business and product leaders. Services include development of cannabinoid based health and wellness products, and the development of medical grade compounds. MJNA provides over 85 proprietary and patented cannabinoid delivery methods that are more socially and medically acceptable than typical industry methods. Finally, MJNA services include the licensing of its proprietary testing, genetics, labeling, and packaging, tracking, production and standardization methods for the medicinal herb industry.”
Medical Marijuana, Inc. was formerly known as Hemp Deposit Distribution Corp. and changed its name to Medical Marijuana, Inc. in March 2011. The company was incorporated in 2003 and is headquartered in Poway, California.
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The only very recent catalyst is the announcement that the Company, its subsidiary HempMeds Mexico, and its products were featured in an L.A. Weekly article focused on the first-ever import permit granted by Mexico for the cannabidiol (CBD) oil product Real Scientific Hemp Oil-X (RSHO-X).
The Dec. 23, 2016, article titled “Mexico Begins Importing Medical Marijuana As Views on Therapeutic Cannabis Evolve” states, “The California-based company’s partnership with Mexico — an ally of particular interest thanks to cultural and historical ties that date back centuries — was solidified earlier this year when COFEPRIS, the Mexican health department, approved the country’s first permit allowing the import of hemp-based CBD oil across its border.” The article goes on to describe how the company worked with attorneys representing families — who then worked with COFEPRIS to develop a “THC-free” version, called RSHO-X™.
Now commanding a market cap of $449.9M, MJNA has a stash ($406K) of cash on the books, which compares with about $3.9M in total current liabilities. One should also note that debt has been growing over recent quarters. MJNA is pulling in trailing 12-month revenues of $7M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 18.6%. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $MJNA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!