Medical Marijuana Inc (OTCMKTS:MJNA) Locked in Free Fall

Over the course of the last five sessions, Medical Marijuana Inc (OTCMKTS:MJNA) dropped nearly 20%. The stock logged five consecutive red days on the charts and is struggling to scrape to a halt and stop this downward slide. Yesterday MJNA closed another 5.9% down, stopping at $0.031 per share.

The company has been struggling on the charts for months but the recent weeks saw MJNA hit a number of fresh 52-week lows. This could be cause for alarm, considering the stream of optimistic press releases coming from the company over the last couple of months, including multi-million dollar purchase orders, new product launches and an expansion into Brazil through an agreement with the country’s government.

The bottom line of all the PR should have been exuberant enthusiasm about the bright prospects in front of MJNA and especially in front of Kannaway, its latest and greatest acquisition. Instead, MJNA is struggling to stay level and stop the decline in price.

Here is what the company published in its latest quarterly that went up on Sep 1:

• $475 thousand in checking/savings
• $4.4 million in current liabilities
• $2.2 million in quarterly sales
• $5.6 million in quarterly net loss

Those figures are likely a significant part of the reason why investors can’t get excited about MJNA despite all the upbeat PR that is beaming forth. Sales are down QoQ, while net loss has ballooned massively. Kannaway’s acquisition is recorded as a $100 million asset on the company’s balance sheet. Some might argue that its revenue contribution so far does little to justify such a valuation.