Medical Marijuana Inc (OTCMKTS:MJNA) Won’t Budge
Even though Medical Marijuana Inc (OTCMKTS:MJNA) is keeping up a very active public relations profile with frequent news releases, including some supposedly significant ones recently, the share price simply refuses to move up in a meaningful way. Yesterday MJNA closed 2% up, at $0.029 per share.
The company provided investors with a news update on its agreement with the Brazilian government for the import of MJNA-produced RSHO CBD oil for patients in Brazil. The PR states that the product is now formally approved by the Brazilian state for import and is tax-free.
The news about the legal changes undertaken in Brazil and the intention of the country to allow import of CBD products to help patients was originally put up months ago in early summer and this latest release is more or less a rehash of the old news with little new substance, so it’s understandable that investors were not exactly stumbling over each other to buy MJNA shares.
The latest available financial report of MJNA remains a pretty dismal sight:
- $475 thousand in checking/savings
- $4.4 million in current liabilities
- $2.2 million in quarterly sales
- $5.6 million in quarterly net loss
The unpleasant details that crop up are a drop in sales on a QoQ basis despite the allegedly immense revenue generating power of Kannaway – an entity recorded as a $100,000,000 asset in the balance sheet, as well as a significant increase in quarterly net loss, primarily caused by a $3.8 million expense stemming from litigation settlement. This was the act of MJNA recognizing convertible notes held by Roen Ventures LLC, which MJNA previously claimed were invalid, and issuing 52 million common shares to cover their conversion.
The company’s next quarterly is due in just over two weeks and will be an opportunity for Kannaway to show that it is indeed worth its $100 million valuation as an asset and actually start making MJNA some money.
