MaryJane Group Inc (OTCMKTS:MJMJ) Explodes on News
After dropping big news near the opening bell yesterday, MaryJane Group Inc (OTCMKTS:MJMJ) went to shift its biggest daily share volume ever and close a whopping 488% up, at $0.01 flat. By the closing bell over 142 million MJMJ shares had changed hands.
The news that sent MJMJ through the roof was that the company announced the opening of the CannaCamp, dubbed the first “cannabis resort” of the U.S. The “bud and breakfast” complex is located near Durango, Colorado and will offer all the rustic charm of a cabin by the woods, only with added special activities and services aimed at pot lovers. The CannaCamp website is now up and running and even takes reservations.
This announcement is an extension of April 20’s announcement of a preliminary JV agreement between MJMJ and the owners of the Wilderness Trail Ranch. There is no information about how exactly revenue from visitors will be split between MJMJ and the Roberts family who have been running the ranch for over 40 years before its repurposing as a “cannabis resort”. One thing however, is certain – staying at the CannaCamp does not come cheap. Two people renting the smaller Ponderosa cabin for a single night will set them back $828.
This is no doubt very exciting about MJMJ shareholders, but there are a few other things they might want to keep in mind as well. First, the fact that MJMJ had $325 in cash to its name as of Jan 31. Second, that MJMJ increased its authorized shares fivefold in early May, going from 200 million to 1 BILLION authorized common shares. There’s also the thing with Magna, the notorious toxic financier, showing up in MJMJ‘s filings. This is the same Magna, which Bloomberg called a “pawnshop for penny stocks”, operated by Mr. Josh Sason who “made millions riding the death spirals of penny stocks”, to quote Bloomberg once again.
MJMJ‘s share structure is also a point that deserves attention. In its latest quarterly, the company reported having 21,322,000 shares as of March 12. A Schedule 13G filed only yesterday reveals that Magna Equities I, LLC owns 12.6 million MJMJ shares, or 9.99% of the company’s 126,662,847 outstanding common shares as of June 8.
The daily volume yesterday, June 9, was 142 million shares – make of that what you may.
