The pump for MediJane Holdings Inc. (OTCMKTS:MJMD) Grinds To A Halt
During Friday’s trading the stock of MediJane Holdings Inc. (OTCMKTS:MJMD) continued to post increased traded volumes but its performance was far from encouraging. Despite opening with a gap up MJMD quickly started losing ground and in a matter of minutes found itself below the 1 dollar mark. The slide continued and the intraday low for the session was $0.85 per share. Still, thanks to the paid pump touting them the stock was able to recover completely ending the day at $1.09.
The promotion for the company began just a few days ago but it seems that it is already starting to falter. According to the landing page the pumpers have a weekly budget of $400 thousand at their disposal in order to create as much artificial hype as they can. In our previous articles we already warned you that the people paying that sum are shareholders of MJMD that own a considerable amount of shares which they want to sell.
These people are more than likely the ones who back in 2010 bought 3,3 million shares for just $0.01 each. Now, that amount has turned into 33 million shares thanks to the 10-for-1 forward split performed last year making the price for each share $0.001.
MJMD‘s past connection with the law firm Carrillo, Huettel and Zouvas, LLP doesn’t do it any favors either having in mind that both Mr. Carrillo and Mr. Huettel were charged by the SEC as part of an international stock manipulation scheme.
It is paramount to keep in mind that currently the stock of the company is one of the riskiest possible investments. MJMD combines both the dangers of a paid pump and a marijuana pennystock making them a prime target for an investigation by the SEC.
Last Tuesday the Commission put an end to the $6.5 million pump for the stock of Pingify International Inc. (OTCBB:PGFY) while just this Friday they suspended FusionPharm, Inc (OTCMKTS:FSPM). For the last three months 5 companies operating in the marijuana industry suffered suspensions thus forcing the SEC to issue an official alert detailing the dangers around the industry. At the start of the year FINRA also warned investors about the possibility of marijuana stock scams. 