Our regular readers and subscribers know very well the next name; Medical Marijuana Inc (OTCMKTS:MJNA). We have already written numerous articles and updates about it. You can have a look at them here. Why do we write so much about this name?. That is an easy question to answer. It is not only because the stock has returned outstanding returns to our email subscribers, rather it is extremely popular on the financial forums that we check every day. The Yahoo Finance Forum , for example, has 5,068 reactions as of May 18, 2017, which is huge number for a company of this size. Investors are interested, because the company is one of the best stocks to get exposure to the marijuana sector and the recent legalization measures in the United States and Canada. This time we will assess the news that the company put out. But, first of all, have a look at the recent share price movements.
As you can see, the stock has been consolidating just above the $.10 level for quite some time. This has proven to be a strong support zone and one which we’ve seen the stock explode higher from. Judging from its chart history, MJNA could be setting itself up to make another major run on the next big news announcement.
Most Relevant Developments
On May 18, 2017, MJNA announced that its subsidiary Kannaway LLC, which offers (CBD) hemp botanical products, will be holding its IGNITE! National Convention 2017 in Scottsdale, Arizona, the weekend of May 19-20. Market participants will have the opportunity to know the brand and its products at this event. In our opinion, the meeting may not have significant impact on the stock, but it is always good to know that the company is working on its brand equity. The CEO of Kannaway said the following about the event:
“We’re excited to be recognizing the achievements of those at Kannaway, as we continue to chart our way as pioneers in the CBD hemp oil industry. This convention is a perfect opportunity for the Kannaway family from around the globe to come together and celebrate our landmark achievements this year.” Source
The company said that a new product will be added to the line of lifestyle products. Additionally, on May 17, 2017, MJNA put out news that the independent equity research firm ‘SeeThruEquity’ initiated coverage on AXIM® Biotechnologies, Inc. (AXIM® Biotech), one of the company’s subsidiaries. We had a look at the report published, which investors could find here, and highlighted the following words that state the valuation of the cannabis industry and how the company may profit from it.
“The market for cannabis-based pharmaceutical and nutraceuticals is emerging and quickly growing. Indeed, legal cannabis is among the fastest growing industries in the United States, estimated at $7.1 billion in 2016, including both medical and recreational uses, according to a report by New Frontier and ArcView Market Research. Axim management has publicly issued a robust top line for aggressive growth. In its investor materials, management highlights the large market opportunities being pursued by the company, and articulates a goal of reaching $1 billion in annualized sales by the end of 2025E.” Source
Finally, another key communication was released on May 9, 2017. The company disclosed its recent expansion in Europe – expected to be fully operational by Q4 2017- Kannaway® Europe. Additionally, Jakub Duda was announced as the new Operations Director of Kannaway® Europe. Kannaway ® CEO Blake Schroeder said the following about the news:
“We are extremely excited to become the first direct selling company featuring phyto-cannabinoid based products to have operations in Europe and to share our products, culture and mission throughout Europe,” Source
Financial Condition and Conclusion
Like other occasions, the company has released very good news. MJNA is not only creating brand equity by showcasing its latest products in Arizona, but it is also exploring new markets outside the United States. This outstanding growth is followed by equity research professionals, who expect the sale’s increase to continue. Additionally, we went to check the company’s financial situation on the OTC Markets website. It is worth mentioning that the assets-liability ratio is impressive, and the long term investments of the company are growing also at a very high pace. To sum up, there are many things to like in this company, thus we encourage investors to stay alert. We will be updating our subscribers as soon as we know more. For the latest updates on MJNA, sign up below!
Disclosure: We have no position in MJNA or AXIM and have not been compensated for this article.