Medican Enterprises Inc (OTCMKTS:MDCN)’s Crash Accelerates After 10-Q
Medican Enterprises Inc (OTCMKTS:MDCN) shed another 20.00% of its market cap yesterday, as the company’s latest filing triggered yet another fit of frenzied selling.
Judging by the charts, the ticker was having trouble holding its ground throughout the entire session – but may have managed to do so, more or less, if the news hadn’t hit it. However, once the report hit the web at 15:32, the crash became inevitable.
And who could really blame investors for desperately scrabbling to abandon ship, when said report showed numbers such as these:
- cash – $9 thousand
- total assets – $73 thousand
- current liabilities – $9.7 million
- NO REVENUES TO DATE
- Quarterly net loss – $108.6 million
The numbers speak for themselves. Even if approximately $100 million of the number given next to “net loss” can be attributed to “Loss on revaluation of derivative liability”, that still leaves about $9 million wort of actual net loss – which is horrifying, especially since the company has nothing to show for it. And that’s not all that is killing MDCN investor value – not by a long shot.
If you think that MDCN‘s financial sheets show a grim picture, you should definitely check out its share structure. Remember when we told you that after the 1 for 10 reverse split that happened on April 4, 2015 the company’s total shares outstanding should have been reduced to about 50 million? Well, as of yesterday, May 20, 2015 that number was 134.7 MILLION – and, suffice it to say that most of said shares were issued at a discounts as terrifying as “60% of the lowest three closing bid prices for twenty prior trading days” or worse.
Long story short – the picture isn’t pretty. In light of just how bleak it looks, it wouldn’t be all that surprising to see the ticker fall all the way to triple zeros.
