Marijuana Company Of America Inc (OTCMKTS:MCOA) is a penny player in the cannabis space that just made a sharp upward breakout above the trigger line in a clear short-term ascending triangle pattern that has defined the action for shares of the stock for most of the past ten days. The catalyst for the move was the company’s announcement that its PCAOB auditors have completed a two-year audit of the Company’s financial statements for the years ended December 31, 2015 and 2016.
The upshot of this announcement will naturally be speculation about an uplist for the company off the pink sheets and onto the OTCQB tier, which implies much greater assurances for larger investors about the reliability of the company’s reported financial data. That should come as good news for current shareholders, and open up the marketplace for investor relations and press coverage for the company that casts a wider net on enticing new investment capital through the door as the company looks to expand its operations.
Marijuana Company Of America Inc (OTCMKTS:MCOA) trumpets itself as a marijuana marketing and distribution company. It intends to distribute a range of marijuana, CBD, and related products in the United States and internationally.
The company was formerly known as Converge Global, Inc. and changed its name to Marijuana Company of America, Inc. in December 2015. Marijuana Company of America, Inc. was founded in 1985 and is headquartered in Bonsall, California.
MCOA is a cannabis marketing and distribution player that intends to be the first to distribute a wide range of high quality marijuana products via a unique distribution and marketing platform.
According to the Company’s press materials, “MCOA plans to distribute marijuana and products related to marijuana as well as CBD and hemp, using a variety of marketing approaches to distributing on a global basis. MCOA provides a wide range of products and services all dedicated to educating and supporting our patient/members in obtaining all the benefits of a cannabis lifestyle. We are developing a knowledge base complete with information from subject matter experts, medical articles and opinions, current articles, YouTube and other videos, blogs, and industry news and papers.”
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As noted above, MCOA’s SEC legal counsel is now finalizing a Form 10 registration statement for filing with the Securities and Exchange Commission. After the registration statement becomes effective, and the Company’s common stock is registered with the Commission, the Company will apply to uplist its trading tier with OTC Markets to the OTCQB exchange.
According to the company’s release, completing the two year audit is an integral step in successfully filing a Form 10 registration statement. This significant step has been completed to enhance long-term shareholder value, and attract a broader and more diverse shareholder base, including more institutional investors.
Donald Steinberg, MCOA President and CEO said, “Our goal is to meet the requirements to be a fully reporting company. This is in-line with our business plan to move to a higher level stock exchange. As we continue to grow within our industry, achieving the highest level of transparency for our current and future shareholders is of paramount importance to us. With the audit completed, we are well on our way to becoming fully reporting and offering more transparency to investors and shareholders.”
The news comes on the heels of the recent announcement that the company will invest cash and stock in a newly formed entity as part of a joint venture agreement with GateC Research, Inc., and receive a 50% equity and share in the net profits produced in the joint venture in Adelanto, California, where GCR owns a permit for cultivation.
We’ve seen about 23% added to share values of the company over the past week of action, with almost all of that coming in reaction to the company’s recent note about audit completion. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 22% beyond its prior sustained average level.
At this time, carrying a capital value in the market of $95.7M, MCOA has virtually no cash on the books, which is balanced by about $108K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. We will update the story again soon as further details emerge. For continuing coverage on shares of $MCOA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
