Medical Marijuana, Inc. (PINK:MJNA) Hovers at $0.30

Yesterday was another cautions trading day for Medical Marijuana, Inc. (PINK:MJNA), marking a full market week of relatively slow trading, considering the recent performance of the stock. Over 7 million shares changed hands and after a morning nose dive, the stock managed to recover in the afternoon, closing the day only 2% down at $0.30 per share.

Things have been relatively calm after the company released some additional information with its much-debated deal with CannaVEST Corp., involving subsidiary PhytoSphere’s assets and oil inventory. Traders seem to have split into two camps, one praising the move that offloaded pretty much all of MJNA‘s oil-producing subsidiary into CannaVEST, f.k.a. Foreclosure Solutions and still trading under the FCLS ticker. The supporters of the agreement stipulate that in this way MJNA shielded itself from potential federal issues, as the deal should allow CannaVEST to start growing industrial hemp on U.S. soil as early as this spring, as detailed in legislation of the state of Colorado.

On the other hand, discussion board commenters who are at the very least puzzled by the CannaVEST deal are wondering why MJNA would part with one of its most valuable subsidiaries that produced a considerable amount of expensive, high-concentration CBD oil, in exchange for shares of a company that was of a shell-like status prior to the deal, yet with shares valued at about $5.00 at the time of the deal. FCLS was largely cashless as of its last quarterly report in September and is likely to continue delivering installments of the $35 million payment to MJNA in stock, collared at prices between $4.50 and $6.00 per share.

Both views raise some points that sound valid but remain in the field of semi-educated guesswork, as MJNA has not made definitive statements that would give prevalence to either. The company has stated its intentions to move out of the pink tier of the markets and uplist to OTC, in an effort to improve transparency and raise investor confidence. Following MJNA‘s audited Q4 report, the CannaVEST agreement seems to have worked in the opposite direction, creating more confusion than confidence. More complete disclosure of the company’s plans and intentions regarding the deal, payment and the future of their joint business with CannaVEST will go a long way towards shifting the stock in higher gear once again.

MJNA is currently a little over 6% down in early trading.