The stock of Medican Enterprises Inc (OTCMKTS:MDCN) is exploding as it zoomed by nearly 67% in yesterday’s trade session to close at $0.0160. A total 0f 54.1 million shares traded during the session while the average volume of the company remains at 37.69 million shares. The optimism surrounds the stock could be credited to a number of shareholders, who have been constantly pointing towards the bright prospects of the company.
Pile of doubts
As a result of extremely positive opinions, the stock of Medican Enterprises Inc (OTCMKTS:MDCN) managed to get out of its triple zero levels, reporting a magnificent performance. While all seems to go well with the company, but a deeper look at the company’s performance hints otherwise. Amid the positive rally, investors missed to react on the company’s notification that said that it will not be able to file 10-K within the deadline, which is the end of the month. The company said that it failed to collect all the required information for doing so, which is clearly big news missed by the investors.
Even the third-quarter report from last year is not convincing enough that all is bright for the company. As per the last reported results, the company maintains just $150,000 of total assets, where its working capital is negative to the tune of $271,000. The company reported zero revenues and its net loss is as high as $8.6 million. It appears that the company’s notification lately stating that it has received zoning approval for the 67,000 square foot premises in Phoenix Arizona has caught the eye of the investors. The company aims to lease the premises to a legal, medical marijuana dispensary, the progress of which is unknown so far.
Also, there is a divided opinion formed over the company’s reverse stock split decision. While many claim that Medican Enterprises Inc (OTCMKTS:MDCN) will not go ahead with the split, there are no official statements in this regard. Amid doubts, it is to be seen as how the company will sustain its current rally.