Medical Marijuana, Inc. (PINK:MJNA) Goes Down a Notch
Yesterday Medical Marijuana, Inc. (PINK:MJNA) delivered choppy intra-day performance but managed to close the day only 2% down at $0.308 per share.
Even if the press release relating to the PhytoSphere – CannaVEST deal did not help the stock climb, it was definitely the talk of town for traders. Discussion boards were once again set ablaze with speculation and theories about the implications of the deal and the possible future actions of MJNA.
The wildest theories brought up on discussion boards involve reverse mergers with CannaVEST in a move to skip uplisting procedures and get MJNA right into the OTC tier, then riding CannaVEST’s ludicrous stock price straight into NASDAQ. CannaVEST is still trading under its old ticker FCLS and closed yesterday’s session at $29.00 per share or 132% up – a fact that confused even more investors as MJNA – the entity injecting value into CannaVEST by virtue of trading real PhytoSphere assets, inventory and property against FCLS shares many will consider overvalued – closed down. It should also be noted that no matter what the price of CannaVEST’s shares is, the shares they are paying MJNA with are latched with a “collar” that sets their price in the $4.50 – $6.00 range.
The more reasonable theories stipulate that MJNA intends to use CannaVEST as a more or less detached buffer entity providing it with raw hemp oil products, as a kind of a precaution measure, in case things go sour on a federal level. Even if this is a much more believable theory, it remains entirely in the field of speculation and guesswork.
Where MJNA is headed price-wise remains about as unclear as ever. The two-year guidance they issued did not have an immediate explosive effect on the stock and traders seem to be relatively cautions with the stock over the last four sessions, with daily volumes never exceeding 10 million shares, compared to 13 million on their lowest volume day in February prior to Feb 27.
Investors may be sitting on the sidelines, waiting for more news, filings or general clarifications about what exactly MJNA‘s plans are for CannaVEST Corp.
