MaryJane Group Inc (OTCMKTS:MJMJ) Lurches Towards Pre-Spike Levels
Yesterday’s session brought more disappointment for MaryJane Group Inc (OTCMKTS:MJMJ) shareholders. The company’s stock sank in double digits once more, with MJMJ stopping at $0.0027 by the bell. Within the last three sessions the company managed to wipe 50% of its market cap.
MJMJ closed under $0.003 for the first time after announcing the CannaCamp – the nation’s first cannabis resort, which is set to open its doors for customers next week and offers accommodation at the surprisingly steep rates of $828 for a single night for two. Then again, a cannabis concierge on site and exciting activities involving cannabis don’t come cheap.
The general level of excitement surrounding MJMJ and the future revenue generation prospects of the CannaCamp has been severely dented. The company played no small part in this. The last few updates concerning the company’s share structure had the potential to severely disappoint many.
Long story short, MJMJ is drowning in dilution. The company did get rid of $361 thousand of toxic debt but this happened at the cost of issuing 350,000,000 new shares within just over two months. MJMJ‘s quarterly for the three months ended Jan 2015 listed 21 million shares outstanding as of March 12. The torrent of new shares started in early April and culminated in the 376 million shares the company reported as of June 17.
Diluting 1600% within three months is a significant achievement and one that should not be taken lightly, especially for those who still believe MJMJ is going to run to ‘multiple pennies’, at least according to baseless message board hype.
MJMJ is just $0.001 away from the level it was at before the CannaCamp PR sent it up to a penny per share. Coincidentally, the 350,000,000 shares issued over the past two months were priced at $0.001 as well.
