MaryJane Group Inc (OTCMKTS:MJMJ) Rears Its Head Again

One of the biggest OTC sob stories of this summer is making waves once again. After a two-month period of quiet, MaryJane Group Inc (OTCMKTS:MJMJ) is rearing its head once more, closing up in double digits two sessions in a row. Yesterday MJMJ stopped 15% up at $0.0015 per share.

MJMJ happens to be one of the companies who executed the PR equivalent of a proper pump job, but without the need to involve any actual stock promoters. Back in early June the company announced it was going to open the first cannabis resort in the US. The stock went wild, peeling off from the bottom end of double-zero land and climbing to over a cent per share.

Unsustainable percentile movement aside, things really went south when it turned out that the so-called CannaCamp 2015 was simply not happening and had been canceled due to MJMJ‘s partners failing to “secure” the ranch which was supposed to host the camp. Many people chose to run with the company-induced hype and got burned bad as MJMJ came crashing back down to levels just above $0.001 per share.

After pulling this stunt that shot investor confidence to bits, MJMJ simmered under $0.002 for a couple of months but is now shuffling heavier volumes and trying to climb again. The trigger for the move seems to be a press release that dropped on Tuesday, informing of the “tremendous growth” the company was experiencing.

This growth amounts to the total rooms rented in MJMJ‘s Bud + Breakfast locations for the three months ended July going up from 643 to 823, against the quarter ended March. Amazing news aside, here is what the company had to show for itself in its latest annual report that went up on July 27:

• $44 thousand in cash
• $117 thousand in total company assets
• $655 thousand in current liabilities
• $609 thousand in annual revenues
• $2.6 million in annual net loss

How much those extra 180 rooms rented over the company’s first fiscal quarter can help turn this ship around and bring MJMJ closer to profitability is a different question. It should also be noted that MJMJ increased its authorized shares twice in 2015, to reach its current 2 billion AS. Despite its optimistic PR and the fact that it moved 36% up within two sessions, MJMJ‘s CannaCamp stunt is probably still too fresh in the memory of traders.