Is Medican Enterprises Inc. (OTCMKTS:MDCN) Going To Fall Further?
After another soul-crushing 26.17% crash yesterday, Medican Enterprises Inc. (OTCMKTS:MDCN) is now on the threshold of triple zero land. But will it take the step down?
If the ticker’s behavior in the last two weeks is any indication, the drop to triple zeros is not only a clear possibility – it seems like a virtual inevitable. After all, MDCN has next to nothing to keep it afloat, even by the exceedingly lax standards of the OTC Markets.
As demonstrated by MDCN‘s latest quarterly report, for the period ended Mar. 31, 2015 the company’s balance sheets can be called a veritable catastrophe:
- Cash – $9298
- Total current assets – $73 thousand
- Total current liabilities – $9.7 million
- NO REVENUES
- Net loss – $108 million
Still, as bad as these figures look, they are arguably less scary than MDCN‘s dilution statistics, which go something along the line of this:
As of April 15, 2015, the Registrant had 447 million shares of common stock outstanding.
A 1 for 10 reverse split brought the company’s common stock count to about 44 million on April 20, 2015
The number of shares of Common Stock outstanding on May 20, 2015 was 134 million.
And it gets worse – 209 MILLION of MDCN‘s common shares changed hands yesterday, which would have been extremely difficult to achieve if the company had just 134 million shares issued and outstanding. The trading volume suggests that the current share count is almost certainly significantly higher than the company’s filings declare, in spite of the latest 10-Q being just 2 weeks old.
Investors should take a note of this and act accordingly.
