Cannasys Inc (OTCMKTS:MJTK) Swaying In Both Directions
Cannasys Inc (OTCMKTS:MJTK) had a pretty nasty slide recently, which cost it a lot of its value. The company stock was barely moving throughout most of the first half of the year and we often saw sessions without a single share of its common stock being traded.
This changed drastically in the end of last month and MJTK began to violently slide down the charts on increasing volumes. The market cap of the company was obliterated and it now sits below $300 thousand. This isn’t so surprising, however, as the numbers of prime interest contained in the company’s latest financial report are simply terrible.
- cash: $9 thousand
- current assets: $14 thousand
- current liabilities: $802 thousand
- revenues: $36 thousand
- net loss: $704 thousand
Those numbers, however, aren’t the only red flag surrounding MJTK. The picture becomes even more terrifying once you take a look at the report’s Note 11 – Convertible Notes Playable section, which reveals that more than half a million dollars of the company’s debt is owed to well-known toxic lenders such as Tangiers Investment Group, LLC and Kodiak Capital Group, LLC and can be converted a discounts ranging from 50% to 55% “of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date”.
We also see that MJTK has become quite volatile after reaching rock bottom and is heavily swinging in both directions. After Tuesday’s 17.21% lost we saw the ticker gain 26.73% in yesterday’s session, closing at $0.013 per share, while the daily dollar volume recorded stood at a mediocre $93 thousand
There is certainly the possibility that the noteholders have begun converting them into common stock, so be sure to do your due diligence and weigh out the risks before putting any money on the line.
