Medical Marijuana, Inc. (PINK:MJNA) Raises Some Eyebrows, Continues Slipping
Yesterday Medical Marijuana, Inc. (PINK:MJNA) notched nearly 6% down to a close of $0.32 per share. The release of the company’s annual report and forecasts for the current and next year didn’t give shareholders any confidence and the stock closed down.
MJNA issued a press release and a filing containing their 2012 results. Among reiterated 2012 revenue and income figures, the filing details the major actions taken by MJNA during 2012, including subsidiary acquisitions and operational highlights. Some additional details that were missing in the audited Q4 financial report have been explained in greater detail in the filing, such as the announced $35 million deal for the sale of hemp oil inventory produced by PhytoSphere.
The filing revealed that the purchasing party is a certain CannaVEST Corp., an entity currently trading, or rather barely trading, under its old name ticker symbol FCLS or Foreclosure Solutions, Inc., at $5.00 per share. The MJNA filing additionally states that CannaVEST has the right to execute the entire stipulated payment of $35 million in stock, latched at prices ranging from $4.50 to $6.00 per share. It also appears that the first $4.5 million installment declared as already paid was also in shares, with no guarantee that the following payments will be in cash.
CannaVEST looks like it would have a hard time paying in a different way. As of its latest quarterly report for Q3 of 2012 it declared zero revenue since inception in 2010 and $163 in total assets, giving it a very shell-like appearance. Additionally, CannaVEST’s one-man-army, Mr. Michael Mona Jr., CEO, sole board member and sole employee of the enterprise, held over 37 million MJNA shares as of last week.
There is some wild speculation on discussion boards that CannaVEST is gearing for an IPO to coincide with its new ticker symbol assignment by the FINRA expected to take place next week. However CannaVEST is trading even now under its old ticker FCLS and so far next week looks like it will bring about nothing but a formal change.
Even long MJNA investors are starting to voice concerns about the developments around the company. The in-house projections for $47 million and $115 million in revenue respectively for 2013 and 2014 did not help much and MJNA could not contain its slide.