Medical Marijuana, Inc. (OTCMKTS:MJNA) Soars on News
Yesterday’s session proved to be a great ride for Medical Marijuana, Inc. (OTCMKTS:MJNA) shareholders. The company’s share price rose by a whopping 25%, driven by a new press release. After shifting its biggest daily share volume for the past year, MJNA stopped at $0.10 flat on 45 million shares traded.
The news that caused this stir dropped yesterday morning. MJNA announced that its Real Scientific Hemp Oil (RSHO) has been approved as an import, prescription-only medication by the federal Brazilian government. The PR states that HempMeds Brasil will be handling the import and drug applications. HempMeds Brasil is called a “corporate affiliated company” of MJNA and its “exclusive distirbutor” of RSHO.
Curiously, this is the first time HempMeds Brasil’s name has come up. Previously, RSHO was distrubuted and marketed by HempMeds PX, a MJNA “corporate portfolio company” and its “exclusive master distributor.” The name of the Brazilian branch of HempMeds is nowhere to be found in MJNA‘s latest annual report. However, the PR states the company has been working “for over a year” on getting its drug application and submission and expects to finish that process by the end of 2015.
MJNA put this news up hot on the heels of its month-late annual report which finally came through. The results were pretty middle-of-the-road, with a sizable increase of annual net sales but also with a bottom line that was $4.4 million in the red. Here is the brief summary of the figures reported as of December 2014:
- $678 thousand in checkings/savings
- $4.0 million in total current liabilities
- $14.5 million in annual 2014 sales income (vs $5.0 million in 2013)
- $4.4 million in annual 2014 net loss
The year-over-year increase of net sales, from $5.0 million in 2013 to $14.5 million in 2014, was for some reason presented as a 280%+ and even a “nearly 300% increase” in the PR accompanying the filing. The actual INCREASE is 180%. It’s just that the 2014 figure represents 280% of the old one. The PR also never mentions the fact that the company lost $4.4 million in 2014 when all was said and done.
Whether the Brazilian approval news will provide the company with extra fuel to run up the charts remains to be seen.
