Thursday, July 7, 2022

Medical Marijuana Inc (OTCMKTS:MJNA) Faces Two Key Tests

Medical Marijuana Inc (OTCMKTS:MJNA) is an MMJ play that we turned cold on back in March. The company has well-known potential and an incredibly active investor relations orientation, but ultimately is mysteriously reluctant to open its financial results to any sort of standard levels of transparency or scrutiny despite having a market cap over a quarter of a billion dollars. In any case, the stock has been a big trading favorite, but has acted relatively heavy in recent months, and closed last week with a breach of key support. The stock now faces a test of the dime support level as start a new, holiday-shortened trading week.

The company’s most recent press release notes that its subsidiary Kannaway LLC, “the first hemp lifestyle network to offer phyto-cannabinoid botanical products,” is adding a new option for vaping cannabidiol (CBD) with a new vaporizer cartridge loaded with 100 mg of pure CBD hemp oil and terpenes to its HempVAP product line.

Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high-value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries.

Its subsidiary, Kannaway, LLC, is a network sales and marketing company specializing in the sales and marketing of hemp-based botanical products. Kannaway currently hosts weekly online sales meetings and conferences across the United States, offering unique insight and opportunity to sales professionals who are desirous of becoming successful leaders in the sale and marketing of hemp-based botanical products.

The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry. It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products.

In addition, MJNA provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry. Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products.

Medical Marijuana Inc. is the first publicly held company vested in the medical marijuana and industrial hemp markets.

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“This new CBD hemp oil vaporizer cartridge stands apart from any other product in the marketplace,” said Kannaway CEO Blake Schroeder. “The product features Kannaway Pure™ CBD hemp oil blended with terpenes from hemp. This creates a superior option for consumers looking to avoid unhealthy mixing agents, such as propylene glycol and polyethylene glycol that can be found in other products on the market.”

Traders will note -6% drained out of share pricing for the company in the past week. Market participants may want to pay attention to this stock. MJNA has evidenced sudden upward volatility on many prior occasions, but has been in a decidedly bearish tone of action in recent months. In addition, the stock has registered increased average transaction volume recently, with the past month seeing 31% over the long run average.

Earning a current market cap value of $337.2M, MJNA has a stash ($1.2M) of reported cash on the books, which compares with about $802K in total current liabilities. MJNA is pulling in trailing 12-month revenues of $10.1M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 135.2%. That said, as we always point out, this is a Pink Sheet stock presenting only unaudited results.

That means all those numbers basically don’t mean anything. The company is stating loud and clear that it is unwilling to allow them to be scrutinized, which raises obvious questions. If they were a $10M company making $100k in revs, then one might suggest that auditing and bookkeeping is expensive and unnecessary in the early stages of growth.

However, MJNA is a company ostensibly worth a quarter of a billion dollars with reportedly over $10M in revs that has been around for many, many years. Hence, one must seriously wonder why this company remains unwilling to open its books up to transparent analysis as basically all other companies of comparable size and age do. Nonetheless, this is still an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $MJNA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

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