Marijuana Company Of America Inc (OTCMKTS:MCOA) is a penny stock that has started to garner attention as the stock bounces up the chart. Shares of MCOA kicked into high gear about two weeks ago when they ripped 150% higher in a matter of days. We are consolidating that move, and the stock is searching for its next big catalyst. As such, the company just announced that it has completed an investment of $250,000 into MoneyTrac Technology, Inc., which is a subsidiary of GLOBAL PAYOUT INC COM USD0.01 (OTCMKTS:GOHE), in exchange for a 15% ownership interest in the company.
According to the release, MCOA made this investment to help establish and market MTT as an alternative banking solution for the cannabis industry. MoneyTrac’s software has the ability to integrate and streamline electronic payment processing, such as E-Wallet and mobile applications, as well as manage and process prepaid cards, debit cards, and credit card payments.
Marijuana Company Of America Inc (OTCMKTS:MCOA) trumpets itself as a marijuana marketing and distribution company. It intends to distribute a range of marijuana, CBD, and related products in the United States and internationally.
The company was formerly known as Converge Global, Inc. and changed its name to Marijuana Company of America, Inc. in December 2015. Marijuana Company of America, Inc. was founded in 1985 and is headquartered in Bonsall, California.
MCOA is a cannabis marketing and distribution player that intends to be the first to distribute a wide range of high-quality marijuana products via a unique distribution and marketing platform.
According to the Company’s press materials, “MCOA plans to distribute marijuana and products related to marijuana as well as CBD and hemp, using a variety of marketing approaches to distributing on a global basis. MCOA provides a wide range of products and services all dedicated to educating and supporting our patient/members in obtaining all the benefits of a cannabis lifestyle. We are developing a knowledge base complete with information from subject matter experts, medical articles and opinions, current articles, YouTube and other videos, blogs, and industry news and papers.”
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As noted above, MCOA management just announced that the company has completed an investment of $250,000 into MoneyTrac Technology, Inc. because they see MTT as a possible alternative banking solution for the cannabis industry.
The reader may already be aware, many of the transactions that define the cannabis industry are complicated by variations in state, regional, and international differences in ordinances and laws pertaining to cannabis, as well as numerous and unique logistical issues native to the cannabis industry. Hence, the theory goes, someone is going to occupy the “winner takes all” circle in the pursuit of a solution to these problems. MCOA is betting that it just might be MTT.
As part of the terms of the investment, Donald Steinberg, CEO and President of MCOA, was appointed to the board of MTT this year where he is lending the invaluable experience he has acquired throughout his career in building alternative financial solution companies to the MTT executive management team.
“We are excited to help guide MTT through its developmental stages and are optimistic about the potential of MCOA’s investment into this new project. This is another example of MCOA’s strong strategic partnerships with emerging companies in our industry,” Donald Steinberg said.
Recent action has seen 71% tacked on to share pricing for the stock in the past month, a rally that has pushed up against longer standing distributive pressure in the stock. That said, MCOA has evidenced sudden upward volatility on many prior occasions. Furthermore, the name has seen interest climb, with an increase in recent trading volume of 42% beyond its prior sustained average level.
At this time, carrying a capital value in the market of $69.4M, MCOA has virtually no cash on the books, which must be weighed relative to virtually no total current liabilities. MCOA is pulling in trailing 12-month revenues of $15K. However, the company is seeing recent declines on the top line on a sequential quarterly basis, with revenues falling at -32.5% as of its latest reporting period. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $MCOA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $MCOA, either long or short, and we have not been compensated for this article.