We put out an article to kick off the action last week (on April 22) suggesting that we were bearish on shares of Medical Marijuana Inc (OTCMKTS:MJNA). Since that time, we have seen a major bearish break of support in the stock over the past couple days, with the stock logging new multi-year lows, registering its weakest price action in nearly three years. Is that enough? We would remain cautious on the name because what on earth could arise that would push this thing higher? In other words, if it’s getting crushed in the 4 months following the passage of the US Farm Bill – as an alleged “leading CBD producer” – then what sort of environment could possibly push it higher?
The answer to that question is sitting on a shelf somewhere in another dimension right next to the square root of negative one. In any case, to try to juice the tape a little, the company just announced the launch of its newest cannabidiol (CBD) pet product, HempBone Smoked Salmon Bites for cats. According to the release, “HempBone Smoked Salmon Bites are artisanal star-shaped cat treats that are soft-baked and naturally-flavored to taste like smoked salmon and roasted seafood.” So, they have that going for them. Artisanal… right.
Medical Marijuana Inc (OTCMKTS:MJNA) casts 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.
MJNA’s subsidiary, Kannaway, LLC, is a network sales and marketing company specializing in the sales and marketing of hemp-based botanical products. Kannaway currently hosts weekly online sales meetings and conferences across the United States, offering unique insight and opportunity to sales professionals who are desirous of becoming successful leaders in the sale and marketing of hemp-based botanical products
MJNA 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, sportswear and more.”
According to company materials, “Our mission is to be the premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate and purchase value-added companies and products while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, develop environmentally friendly, economically sustainable businesses, while increasing shareholder value.”
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As noted above, MJNA just announced the launch of its newest cannabidiol (CBD) pet product, HempBone Smoked Salmon Bites for cats. The stock has suffered a bit of late, with shares of MJNA taking a hit in recent action, down about -9% over the past week.
Furthermore, the stock has registered increased average transaction volume recently, with the past month seeing 24% over the long run average.
“Our HempBone Bacon Apple Donuts have gained incredible popularity over the past year because of their natural allergen-free ingredients and palatable taste that dogs love,” said Phyto Animal Health CEO Ian Quinn. “We wanted to offer a safe and nutritious snack for cats as well so we created HempBone Smoked Salmon Bites. They are one-fourth of the CBD per serving size as the Bacon Apple Donuts and feature a more feline-focused flavor, better meeting the dosing needs and taste preference of cats.”
Now commanding a market cap of $198.79M, MJNA claims to have a significant war chest ($5.4M) of cash on the books, which must be weighed relative to about $7.5M in total current liabilities. One should also note that debt has been growing over recent quarters. MJNA also claims to be pulling in trailing 12-month revenues of $59.8M (unaudited). In addition, the company is also claiming to have y/y quarterly revenue growth at 87.4% (unaudited). We will look forward to updating this story again soon. Sign-up for continuing coverage on shares of $MJNA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MJNA, either long or short, and we have not been compensated for this article.