Medical Marijuana Inc (OTCMKTS:MJNA) is a stalwart play in the cannabis patch. MJNA has started to engage some focus among traders and investors in recent days as prices get a little traction in bounce mode. We’ve witnessed 25% piled on for shareholders of the company during the trailing week. This is emblematic of the stock. MJNA has a history of dramatic rallies.
What’s more, the stock has seen interest climb, with an increase in recent trading volume of 43% beyond its prior sustained average level. So we thought it was a good time to dig into the story a bit here.
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, the company 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. 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 macro catalysts here are obviously overwhelming right now, with four new states coming to the ballot box in November to look at legalizing medical marijuana. It’s also possible that the Drug Enforcement Agency and the Dept of Justice will finally drop marijuana from its Schedule I list of controlled substances. The Schedule I classification undermines research on marijuana’s potential health benefits.
A number of other cannabis related plays shot up ahead of MJNA in recent weeks, and now we are seeing the laggard plays get spot-lit and glossed higher.
Contributing to the positive energy, MJNA has had some recent nice press, including a piece in Mexico Forbes that discusses the company’s pioneering role in expanding access to medical cannabinoid products to people across Latin America, including bringing the first legal cannabis products to Mexico, Brazil and Paraguay.
The Sept. 19 Mexico Forbes article titled, ” Cotiza en los mercados y quiere vender medicina de marihuana en México ,” describes how Medical Marijuana, Inc. has been instrumental in the acceptance and legalization of medical marijuana products across Latin America. The article also discusses the market potential for cannabis in the region, including a potential $2 billion opportunity in revenue for Medical Marijuana, Inc. in Mexico alone, according to the Company’s Chief Executive Officer Dr. Stuart Titus.
The Company also garnered national news headlines across Mexico, including a Reforma article casting a very warm light about MJNA’s Real Scientific Hemp Oil-X product, which is the first legal cannabis product in Mexico.
The Reforma article “No más convulsiones para Emili” explains how Emili Zoe, an adolescent from Mexico, and her family toiled and tirelessly researched to eventually find Medical Marijuana, Inc.’s RSHO-X.
Now commanding a market cap of $153.8M, MJNA has a decent store ($266.17k) of cash on the books, which must be weighed relative to a mountain ($13.67M) of total accumulated debt. That’s not a great fiscal situation. In addition, revenues are declining in recent quarters, but from a strong level, and we have very solid reasons to believe that the size of the marijuana pie is about to grow, which should smooth over some of the Company’s issues. That said, the float is massive (over 2 bln shares) and may be expanding further, so this probably isn’t the long-term raft to strap yourself to for a cannabis investment strategy. But the stock will offer many interesting trading opportunities and we plan to closely follow the story going forward. For continuing coverage on $MJNA and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!