Medican Enterprises, Inc. (OTCMKTS:MDCN) Careens Downhill
Yesterday was another terrible session for Medican Enterprises, Inc. (OTCMKTS:MDCN) shareholders. The company’s share price slid another 17% to stop disturbingly close to the upper edge of triple zeroes. Share volume remained heavy, at over 163 million shares changing hands yesterday.
The company is a pot stock, or rather a would-be pot stock, which limited cash in the bank and no revenues for 2014 and 2013. A few recent announcements almost managed to patch things up but MDCN kept marching down the charts.
The company executed a reverse split in a 1-for-10 ratio in the spring of 2014. This left the company with a significantly reduced number of outstanding shares and a per-share price that was obviously a lot higher. The 447 million shares MDCN had as of mid-April were down to 134 million on May 20, just a couple of weeks ago.
However, assuming the reverse split brought the OS count to just under 50 million, this still means MDCN pumped out an alarming number of new, post-split shares to bring the figure up to 134 million. Additionally, it’s not exactly clear whether this 134 million figure is still accurate, considering MDCN shifted 171 million shares in Friday’s session.
Here is the brief version of the latest quarterly’s balance sheet:
- $9 thousand in cash
- $9.7 million in current liabilities
- ZERO revenues
- $5.7 million loss from operations
- $108 million net loss
The fact that MDCN has dropped 81% within the last 10 sessions, logging 10 red days in a row is probably enough to give eager investors a bit of pause and urge them to do their own research, especially considering that even after this devastating streak the stock is still not in oversold territory.
