Medical Marijuana, Inc. (OTCMKTS:MJNA) Huffs, Puffs, Closes at $0.10

Yesterday’s session market the biggest percentile move of Medical Marijuana, Inc. (OTCMKTS:MJNA) since late April. To the disappointment of shareholders, the move was a downward one, as MJNA slipped over 16% in the last session.

Despite the fact that MJNA announced a tripling in its production of raw hemp as an anticipatory move to cope with projected increases in demand, the stock took an almost immediate nose dive yesterday, then trundled along to close the day at precisely $0.10 per share. All previous resistance points, real of imagined, have now been breached and MJNA share price has found itself about 80% below its February highs.

The move has thrown investors into yet another bout of panic, with some crying foul once again, others declaring this sort of dip the next opportunity to load cheap shares. The dip comes after a prolonged period of relatively little information coming from the company and could potentially signal an unpleasant return to prices under a dime.

Investor confidence was also shaken by the significant dilution MJNA experienced in Q1 alone, with the outstanding share count of the company going up by 127 million, or 17%. The fact that CannaVest Corp. is now virtually running the hemp production side of MJNA‘s business is little consolation, considering they are paying for the acquisition of PhytoSphere with shares and not cash. CannaVest reported Q1 revenues of $1.2 million and net profit of $337 thousand, recorded as originating from the sale of raw materials.

No one can really tell whether MJNA is going to retrace its previous highs or whether it will wheeze and deflate even further. While the completion of the CannaVest payment to MJNA will essentially transfer controlling interest to MJNA, this is yet to happen and the panic momentum may send the price of MJNA even further down in the short term.

MJNA looks set to try and recover at least a little, trading 5% up in the early session.