Medical Marijuana Inc (OTCMKTS:MJNA) just hit the wires with its new quarterly numbers. MJNA has been making a bit of a comeback over the past 5 weeks after cracking down to catch support just above the nickel/share level in mid-October. The new release comes amid a fresh pullback of about 25% drawing the stock down to the $0.09 level after it had run to recent recovery highs matching its July peak around the $0.12 area.
According to its release on Tuesday, “the Company saw a gross revenue increase from $2,188,671 in Q3 2016 to $7,783,297 in Q3 2017, a year-over-year increase of 255%. Total gross profit increased from $1,266,488 in Q3 2016 to $5,034,464 in Q3 2017; which is an increase of 297%. Net loss in Q3 2016 of ($4,286,818) was decreased by 30% over Q3 2017 to ($2,959,173). The company reported total assets in the amount of $345,388,650.” We would caution that these results are unaudited.
Medical Marijuana Inc (OTCMKTS:MJNA) casts 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.
MJNA’s 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.
MJNA 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, sportswear and more.”
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The data, as reported, represents stronger-than-expected growth, which accounts for the positive action in the stock. The move was hardly overly enthusiastic, though, given such strong reported growth in sales. We would guess the reason for the headwind was the additional note in the filing that the company continues to create shares to service convertible debt as a torrid pace (over 21M new shares in the previous quarter alone).
“We are excited to announce such outstanding leaps in growth and success this quarter,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “We believe that with these record-breaking revenue numbers, we have the capacity to make 2018 the most profitable year the company has ever seen. We are currently spending on international expansion and research efforts which should pay long-term dividends for shareholders.”
We’ve witnessed 34% added to share values of the name over the past month of action, but this action is running counter to the larger trend in the name. The situation may be worth watching. MJNA has evidenced sudden upward volatility on many prior occasions. What’s more, the name has seen interest climb, with an increase in recent trading volume of 40% beyond its prior sustained average level.
At this time, carrying a capital value in the market of $299.2M, MJNA continues to report unaudited results. That said, the numbers certified by the officers of the company include a store ($1.2M) of cash on the books, which must be weighed relative to about $1.5M in total current liabilities and around $11.6M in convertible debt. MJNA is pulling in trailing quarterly revenues of around $7.7M. In addition, the company is reporting major top-line growth, with y/y quarterly revenues growing at 255%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $MJNA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MJNA, either long or short, and we have not been compensated for this article.