MaryJane Group Inc (OTCMKTS:MJMJ) Wipes More Gains
It seems the wave of excitement that pushed MaryJane Group Inc (OTCMKTS:MJMJ) over 480% up the chart on Tuesday has washed over the shareholder base and is now a thing of the past. After its momentous single session pop, the company is dropping hard in double digits, having lost 55% over two consecutive sessions, now back deep in double zero territory.
Yesterday MJMJ lost another 22% and stopped at $0.0045 per share. The company’s Tuesday run was triggered by the news that MJMJ was opening the CannaCamp – a rustic recreational complex focusing on both outdoor activities, as well as specific activities that appeal to cannabis lovers. The camp was dubbed the first “cannabis resort” in the U.S. and will feature oddities such as a ‘cannabis concierge’ who will advise visitors on particular strains and offer discounted purchases from partnering dispensaries.
The CannaCamp is the culmination of the JV plans MJMJ announced back in late April. The cabins of the Wilderness Trail Ranch – a formerly family operated recreational business near Durango, CO – are already up for booking on CannaCamp’s website.
This is all great news but the company’s filings contain enough red flags to pull the reins of trader excitement. As of Jan 31 this year MJMJ had less than $400 in the bank and had 21 million outstanding shares on March 12.
The most recent official indication of the company’s outstanding shares figure is a Schedule 13G dated June 8. This filing states that the 12.6 million MJMJ shares held by Magna Equities I, LLC comprise 9.99% of the company’s total of 126,662,847 outstanding common shares.
Diluting retail shareholders 500% in just under three months is an impressive feat and one that can serve as a high-flown red flag. It may also partly explain why MJMJ went from $0.10 per share in early April to its recent prices, on the bottom end of double zeroes.
