Medical Marijuana, Inc. (PINK:MJNA) Gears Up for Expansion in Europe

After keeping a low profile for a couple of weeks, with share price fluctuating around $0.30 and lately dipping below that, today Medical Marijuana, Inc. (PINK:MJNA) came up with significant news at the market open.

The reason for the press release originated outside of the company but has the potential to bring about changes for MJNA as well. The company announced that it will be moving in to deploy its operations and products in Europe – Italy and the Czech Republic in particular, where medicinal marijuana has only recently been finally legalized. The Czech head of state signed the bill in mid-February and Italy formally legalized the medical use of marijuana in late January.

Now MJNA has formally declared its intentions to take advantage of the changes taking place on European soil and move in with its established line of products. An important point is that the press release states MJNA intends to not only deploy in Europe but also invest in local producers and distributors and add its arguably most successful product – its high-concentration CBD oil to existing products on the market. The announcement also mentions the recent news of Denmark planning negotiations with the states of Colorado and Washington for possible future import, as the European country is being swept by a wave of support for the leafy plant.

The market reacted quickly, with MJNA taking off immediately in early trading, spiking 11% up, then cooling down a little, currently 9% up. The news seems to have triggered another wave of excitement, with enthusiastic traders biting into MJNA shares.

While the release does indeed contain good news, it’s still in the domain of future possibilities. The developments in Europe provide fertile ground for expansion but the expansion itself is yet to happen. Considering the previous hype-driven runs of MJNA, when the stock price climbed a little too fast for its own good, it may be healthier to pace its movement as hype spikes proved difficult to sustain.

It remains to be seen where the future takes the company and whether it will score the big European success it seems to be poised for.