Medical Marijuana Inc (OTCMKTS:MJNA) Steamrolled Under Three Cents

After it pierced through four cents per share in early September, Medical Marijuana Inc (OTCMKTS:MJNA) only took three short weeks to lose another cent in share price. Yesterday the stock slid 5.8% and closed below three cents per share for the first time since the summer of 2012.

The chart performance of MJNA in 2015 has been an almost uninterrupted streak of disappointment, barring a handful of green spikes that were wiped within the space of a week. In January the stock was trading at over $0.12 per share.

There seems to be a strong dissonance between the press releases the company has been putting up for a few months and its price movement. There has been nothing but optimistic chirping coming from MJNA‘s PR feed – multi-million dollar sales agreements, new product launches, international agreements with the Brazilian government, new product approvals for overseas sales. All of this culminating into a streak of 52-week lows spaced just days apart does not cast a particularly favorable light on things.

The last financial report MJNA put up is much more in line with its chart performance, however. Here is a brief rundown of the figures reported:

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

There is the very obvious matter with sales dropping QoQ and loss increasing massively. There is also the outstanding $8.4 million in payable outstanding convertibles that can be turned into MJNA shares at a fixed 30% discount of the average of 3 lowest closing bid prices 20 days prior to conversion.

MJNA has been oversold for over a week but that did not stop the price from slipping to new lows. With the supposedly infallible support investors thought the stock had at $0.04 per share long gone and MJNA now below $0.03 per share, predicting the price movement is harder than ever.