Medican Enterprises Inc (OTCMKTS:MDCN)’s Bounce Didn’t Last
Medican Enterprises Inc (OTCMKTS:MDCN) closed a good 20% up on Friday, but evidently its momentum didn’t carry on into this week.
As we’ve discussed on multiple occasions in the past, it is hardly ever surprising to see MDCN stumble, as there is so very little keeping the ticker afloat. Take, for instance, the numbers it gave in its latest financial report:
- Cash – $9298
- Total current assets – $73 thousand
- Total current liabilities – $9.7 million
- NO REVENUES TO DATE
- Net loss – $108 million
Calling said numbers anything less than horrendous would not do them justice at all. And the worst part? That’s not even the biggest of the red flags that surround MDCN.
Let’s have a more detailed look at the company’s share structure and its recent history, shall we?
As of April 15, 2015, the Registrant had 447 million shares of common stock outstanding
A 1 for 10 reverse split brought the company’s common stock count to about 45 million on April 20, 2015
The number of shares of Common Stock outstanding on May 20, 2015 was 134 million
As horrible as this dilution statistic is, there is evidence that the actual situation with the company’s common stock is even more grim. Why? Because less than a week ago, on June 10, a total of 304 MILLION shares of MDCN common stock changed hands over the span of a single session.
Needless to say, such a feat is nearly impossible to achieve with just 134 million shares of common stock issued and outstanding. This is why it would probably be safe to assume that the actual total is much, much higher than that.
And what could the ticker do, in the wake of such a flood of dilution, except fall lower and lower?
