Medical Marijuana Inc (OTCMKTS:MJNA) Logs New Lows

After a couple of green days that looked like a careful balancing act, Medical Marijuana Inc (OTCMKTS:MJNA) went back to slowly dropping down the charts. The share price took another step down yesterday, stopping at its lowest close for the last 52 weeks, at $0.030 per share.

Share volume was up at a seven-digit number yesterday, with selling intensifying. MJNA’s last press release came last Thursday and did its best to reverse the chart slide. The company announced receiving twelve separate overseas medical product approvals and registrations. With those secured, the products in question can be distributed and sold through pharmacies and other healthcare institutions.

Judging by the fact that the Department of Health that issued the approvals was called “Departmento de Salud” (sic) in the PR, those approvals were most likely issued for the territory of Puerto Rico, even though the PR never names the state that issued them. Why the name of the country that issued those approvals is not mentioned in the PR remains a mystery.

This announcement did little to help MJNA’s failing share price. The stock had one of its more volatile recent sessions on the same day, closed a single percent up, then went back to red closes in the next session.

MJNA’s latest quarterly report contained the following:

• $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 could in part explain the reluctance of investors to get particularly excited about any optimistic PR the company puts up. Sales are down QoQ, net loss has grown significantly, the acquisition of Kannaway and its revenue contribution over Q2 does not appear to live up to Kannaway’s valuation of $100,000,000 as recorded in MJNA’s balance sheet.

While many MJNA supporters thought MJNA had rock –solid support at $0.04, now that the company had dropped 25% from that level, there’s no telling what may happen if the price sinks below three cents per share.