Why Medical Marijuana Inc (OTCMKTS:MJNA) is Going Off a Cliff

Why Medical Marijuana Inc (OTCMKTS:MJNA) is Going Off a Cliff


Last week, we wrote a piece on Medical Marijuana Inc (OTCMKTS:MJNA) that was extremely clear about the direction we thought this stock would go: straight down. In fact, we suggested that a catalyst that could be found capable of lifting the name would only be found “sitting on a shelf somewhere in another dimension right next to the square root of negative one.”

Since then, the stock has crashed, dropping as much as 25% on rising volume with multi-year support levels taken out by the day. To try and limit the damage, the company just announced that its subsidiary Kannaway was named the winner of a Gold Stevie Award in the Medium Company of the Year – Health Products & Services category in The 17th Annual American Business Awards. According to the release, the company was also named the winner of a Bronze Stevie Award in the Consumer Products Category for its Cannabis Beauty Defined cannabidiol (CBD) skincare line.

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 that its subsidiary Kannaway was named the winner of a Gold Stevie Award in the Medium Company of the Year – Health Products & Services category in The 17th Annual American Business Awards.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action MJNA shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -21% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

In addition, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 75% over the long run average.

“We are honored to receive these prestigious business awards for our company growth and innovative offerings,” said Kannaway® CEO Blake Schroeder. “We are thankful that we have this opportunity to showcase our accomplishments and our dedication to providing the highest-quality hemp products in the cannabis industry.”

At this time, carrying a capital value in the market of $164.94M, MJNA has a significant war chest ($5.4M) of cash on the books, which stands against about $7.5M 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 $59.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 87.4%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.