The stock of MEDIJANE HLDGS INC (OTCMKTS:MJMD) witnessed a massive rally yesterday as its shares skyrocketed by over 212% to close at $0.0150. Over 58.650 million shares traded on the exchange, which is unusually higher than its three-month average trading volume of 2.205 million shares. There was no particular announcement made by the company that could have fueled the stock rally. However, yesterday’s gains translated into nearly 15% YTD gains for the company’s stock, which performed poorly over the last year.
Call for softer regulations
One could relate MEDIJANE HLDGS INC (OTCMKTS:MJMD)’s rally with the new developments taking place in the marijuana industry. It is widely expected that the New York department of health could come easy on stricter regulations imposed on the medical marijuana currently. As the final draft of the medical marijuana regulations is likely to come, there are speculations that the laws will be made more accommodative. As per the current laws, marijuana smoking is prohibited, while its distribution is strictly restricted to 20 dispensaries in the New York State. In addition to these rules, only as little as 10 medical conditions qualify to be treated with marijuana drug.
Positive but not for a single company
Such inflexible regulations have been a cause of worry among Democrats and others, who opine that these laws will prevent many patients to access the drug. Manhattan Democrat Richard N Gottfried openly argued that how such stringent regulations will hurt the patients, who really need the drug. He said that the dispensaries, which distribute medical marijuana have to comply with extreme rules such as any repair work needs proper authorization or drinking of milk or any other drink within the dispensary is not allowed. Resultantly, lobby groups and medical practitioners pressed the demand for more realistic regulations. While this is a positive development for the marijuana industry as a whole, but not sufficient proof to validate MEDIJANE HLDGS INC (OTCMKTS:MJMD)’s mammoth rally.