Medical Marijuana Inc (OTCMKTS:MJNA) is a stock that’s been soaring higher with other marijuana-related names in a move that has caught and dominated the focus of OTC traders everywhere. The stock’s momentum has been augmented over the past 24 hours due to the company’s partnership with CannaNative to grow cannabis and produce the first-ever hemp oil products and develop economic opportunities on native lands in the United States. CannaNative is described as “the premier Native American-owned company that uses cannabis to promote economic development on native lands”. The partnership was also featured in reports from Reuters, Time.com, and Forbes.
We’ve witnessed upwards of 140% added to share values of the stock over the past month of action. The situation may continue to be worth watching. Shares of MJNA stock have a past littered with sudden rips, especially when average volume is spiking as well. That’s precisely what traders see in the stock at present – a jump in recent trading volume to the tune of about 270% above its longer-run average levels.
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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While the urge is always to try to answer, “Why is the stock running so big here?” by looking at individual company news, we would continue to focus on the big picture right now.
Sure, there was a Reuters article picked up by Time.com entitled “Hemp may be next gold mine for Native American tribes,” that highlights how cultivating industrial hemp could lift many people from poverty on Native American lands — the global hemp market is already an $800 million market that could grow into billions, according to the Global Hemp Group.
In addition, there was a Forbes article explaining how CannaNative has come to an initial agreement with the Navajo Nation to discuss growing cannabis and promoting economic opportunities on the largest Native American land in the United States today, with reservation land covering a total of 17.5 million acres.
And, yes, CannaNative is a partner of MJNA. We are sure that has something to do with the big pop this week in shares of MJNA stock.
In fact, Medical Marijuana, Inc. and its sales subsidiary HempMeds® announced a partnership with CannaNative™ to produce cannabidiol (CBD) products derived from industrial hemp for a branded line of products, which will be distributed to tribal wellness centers on reservations and native doctor’s offices, pharmacies and dispensaries. The partnership and products are intended to help the more than 560 U.S. tribal nations develop hemp and cannabis-based economies to protect their sovereignty.
So, the partnership itself is old news.
The more important issue is, once again, that we are now just about 2.5 weeks away from a vote where more than 30% of the US population will be represented in a democratic referendum on the legality of pot in America. The result of that vote is projected to possibly triple the size of the legal sales footprint of marijuana overnight. As a result, everything in the space is launching.
Currently trading at a market capitalization of $321.3M, MJNA has a decent store ($266.17k) of cash on the books, along with total assets topping $210M, which is balanced by a mountain ($13.67M) of total accumulated debt. This is frankly a rough balance sheet situation. That’s why the stock is rallying so violently. It’s always the troubled players that make the biggest moves in a sector-wide rally that gets out of hand because it’s where shorts have camped out the most fervently. When they finally give up and throw in the towel, the result is this type of spike. And, we would remind our readers, there is still another couple weeks of this kind of thing. For continuing coverage on shares of $MJNA and other hot penny stock picks, sign up for our free newsletter now and get our next hot stock pick!