MaryJane Group Inc (OTCMKTS:MJMJ) Wobbles Along
Another day, another double-digit swing for MaryJane Group Inc (OTCMKTS:MJMJ). Bouncing in either direction uncontrollably seems to be par for the course with MJMJ these last few sessions. However, the company is dipping to lower lows after its original June 9 price spike. Yesterday MJMJ closed 30% up, still well within double zero territory, at $0.0035 per share.
The company’s recent claim to fame is the upcoming opening of its CannaCamp – a cannabis resort located on the premises of the Wilderness Trail Ranch in the state of Colorado. The CannaCamp will include outdoor activities and special attractions for pot lovers but cannabis will not be sold on site – visitors will have to provide their own.
MJMJ rode the huge soap bubble spawned by the CannaCamp news all the way up to one cent per share on June 9. The sessions that followed sliced 65% off the company’s share price. This happened largely because of the way MJMJ handled $361 thousand of convertible debt over the past two and a half months.
Back in early March the company had 21 million shares outstanding. A recent 8-K filing informed in a matter-of-fact tone that this number had grown to 376,172,053 as of June 17. Between early April and mid-June the company pumped out 350 MILLION new shares, priced at an average of $0.001, to clear $361 thousand of debt.
Long story short – MJMJ diluted retail shareholders to kingdom come faster than you can say CannaCamp. Outstanding shares grew 1690% within the space of just over three months – monstrous dilution by any definition, made worse by the fact that the average price of the newly issued shares is significantly lower than MJMJ‘s market prices over the past few months.
Yesterday Jimmy Fallon mentioned the CannaCamp and used it in a gag that strung together a number of hilarious stoner jokes. Judging by how much cheering this caused on investor discussion boards despite the 350 million new shares, it would not be much of a surprise if MJMJ managed another green close today.
