Is Medican Enterprises Inc (OTCMKTS:MDCND) Headed To Double Zeros?

Medican Enterprises Inc (OTCMKTS:MDCN) shed 25.00% of its market cap in another disastrous slide down the charts in yesterday’s trading session.

Judging by the way events unfolded yesterday, it may well turn out that the much anticipated halt to MDCN‘s descent was just an all together too brief dead cat bounce. If that is the case, the ticker may well end up in double zero land by the end of today’s trading session.

And, frankly, such a turn of events should not be surprising for anyone who has done proper due diligence on the company. Why?

MDCN had approximately $5.6 million worth of outstanding convertible debt at the end of 2014. Given the company’s history, investors should have been wary of dilution during the first quarter of 2015. Those who were prudent enough to read some filings were probably not surprised to see MDCN‘s outstanding share count balloon nearly tenfold – from 47 million to 447 million.

The 1-for-10 reverse split reduced said SO number to approximately 50 million, crushing investor value in the process, but even after that there is no real guarantee that the dilution will now cease.

More information on MDCN‘s share structure should be released in the company’s upcoming 10-Q, that is to hit the web in two days’ time. Investors should keep a sharp eye out for that report, as it should contain crucial information about both the company’s financial status and share structure.