Medical Marijuana Inc (OTCMKTS:MJNA) Deserves A Much Higher Share Price

In our last review of Medical Marijuana Inc (OTCMKTS:MJNA), we examined the sharp spike in its quarterly sales for 2Q17. We also saw how the company was moving swiftly to capitalize on new markets for legal marijuana.The push for marijuana legalization continues to gain momentum not just in the US but in other countries around the world. Canada is eyeing July 2018 for federal legalization of marijuana for adults – or what the industry calls recreational use. So far, marijuana is legal in one way or another in the US, Canada, Brazil, Mexico and Australia.In today’s piece, we’ll examine recent notable developments in legal cannabis industry and within MJNA to expose their potential impact on the stock price of MJNA over the short or long-run.But before we get into the details, we’ll let you take a look the MJNA’s share price action. MJNA Daily ChartBusinessFor readers coming across MJNA for the first time, here’s a little background on the company.MJNA was incorporated in 2003 and it is headquartered in Poway, California, USA. MJNA operates as a holding company of multiple subsidiaries in the legal cannabis and industrial hemp industries in America – though it’s looking to expand into markets beyond the Americas.Through its subsidiaries, MJNA produces and commercializes a broad range of products, including those based on cannabidiol (CBD), for pharmaceutical, nutraceutical and cosmeceutical markets.Recent developmentsMJNA on August 21 announced a historic sale in Mexico. The company said that its Mexican subsidiary HempMeds Mexico was able to sell its CBD hemp oil products to the government of the State of Mexico. That was not only MJNA’s first sale to government in Mexico, but also the first time a Mexican government purchased CBD products for its citizens.The State of Mexico purchased the CBD hemp oil products from the MJNA subsidiary to treat citizens suffering from debilitating conditions including Lennox Gastaut-Syndrome and Refractory Epilepsy.On September 11, MJNA announced another revenue milestone, saying that August 2017 was its largest revenue month in history. The milestone came on the back of robust sales by MJNA’s subsidiaries such as HempMeds Mexico and Kannaway.Blake Schroeder, the CEO of Kannaway, stated this about the sales milestone:

"Kannaway's growth has been particularly stunning since it's re-launch in March 2016. Kannaway's revenue has increased over 25 times during that time-period, and the company intends to launch a series of new products in Q4 2017 as it gears up for its regional convention this fall in Denver, Co. Additionally, there are plans to launch into Europe later this year. We fully expect Kannaway's aggressive growth to continue!"

SourceDr. Stuart Titus, the CEO of MJNA, added that:

"As we continue to expand into new markets, we are proud to watch the Company achieve milestone after milestone. Our portfolio of companies continues to create exciting developments in the cannabidiol (CBD) sector. Medical Marijuana, Inc. and our portfolio of companies are on track for a banner year, in terms of gross sales revenue figures."

SourceTo add to the above MJNA’s gross revenue for 2Q17 rose an incredible 269% quarter-on-quarter to $6.1 million – making it the largest quarter by sales in the company’s history.Legal marijuana market in AfricaThat a tiny African nation of about 2 million people recently became the first on the continent to license marijuana production may not cause many heads to turn. Of course, the news didn’t receive much mainstream media attention initially.But the significance of the move by Lesotho to grant a South African company called Verve Dynamics an official license to grow marijuana in the country cannot be understated. Lesotho granted Verve a permit to cultivate marijuana for medicinal and scientific purposes – becoming the first official marijuana production license issued on the African continent.The development in Lesotho is significant in a number of ways – which, needless to say, are favorable to cannabis companies like MJNA. First, the move by Lesotho tells of growing global acceptable of marijuana even as the US federal government continues to drag its feet with regards to lifting cannabis prohibition.The prospects of new job opportunities for the millions of the unemployed African youths could cause more African countries to follow in Lesotho’s footsteps – leading to a wider market for marijuana. Additionally, a legal and formalized marijuana market could help African countries reduce crime by quashing backstreet marijuana trades.For prominent cannabis companies like MJNA, the move by Lesotho government to grant Africa’s first official marijuana license highlights the bright prospects for the industry.It’s not just in Africa where signs of an enlarging cannabis market can be seen. Canada is on the verge of legalizing recreational marijuana – one of the promising subsets of the legal marijuana industry. Canada is working toward a July 2018 deadline to legalize marijuana for adult use in the country – a move that would expand the addressable cannabis market in the country and potentially pour more revenue into the coffers of MJNA. Surveys have showed that about two-thirds of Canadians want marijuana to be legalized in the country.ConclusionIn light of what we’ve just discussed, it could only be a matter of time before shares of MJNA begin a long uptrend to new highs.We will be updating our subscribers as soon as we know more. For the latest updates on MJNA, sign up below!For the full story, check out our complete coverage on MJNA.Disclosure: We have no position in MJNA and have not been compensated for this article.