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MJNA: Why I Say Sell

|Includes:Medical Marijuana, Inc. (MJNA)

I have followed Medical Marijuana, Inc. (OTCPK:MJNA) closely for 9 months. It has been a story that has disgusted me as far as the lack of transparency and the poor corporate governance but also one that has offered hope, as the company seemed poised to capitalize on cannabis despite all these short-comings. Specifically, the company is able to ship CBD-based products derived from hemp to any consumer in the U.S. or even beyond.

I shared my most recent update at Seeking Alpha in an article that examined several issues that arose in the most recent quarterly filing. I submitted that article on Saturday 11/16, a day after the company had sneaked in its quarterly filing a day late and after the market had closed. I published with the caveat that the company hadn't yet released a press release. Today, almost four full trading sessions later, the company did so, and you can access it here. The p.r. lacked substance, failing to address why board members left (to go back to agriculture???) or why the company had turned to outside financing when CannaBank was supposedly capable of funding the company. Why did the company still not sell the 47mm shares allocated to fund research (and change the time-frame from three years to up to five years).

Rather than raise the points I have already addressed, I want to point to new issues that have arisen subsequently, all of which we have discussed at length on 420 Investor, the best place to learn about publicly-traded cannabis stocks.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: MJNA