Medican Enterprises Inc (OTCMKTS:MDCN) has put water on the aspirations of its fans after pushing back the acquisition of two Arizona properties further. In a press note, the company said that it has extended the option to buy the two facilities located in the Phoenix, AZ Further while it is seeking capital in the marketplace.
The announcement came as a shock to the investors, who held high expectations from the company about progressing towards closing of the acquisition. Robbing investors of their hopes, Medican Enterprises Inc (OTCMKTS:MDCN)’s effort to highlight the potential income from its two properties were unimpressive.
Referring to the 7,200 sq ft property, currently leased to a medical marijuana dispensary, the company said that Kalinowski & Associates, a real-estate appraisal firm has valued the property at $2.3 million as on December 24, 2014. Medican Enterprises Inc (OTCMKTS:MDCN) tried to boost the confidence about its decision pointing out that the evaluation does not include additional income of 30% on gross sales as it has just factored in $15,000 per month under the lease income.
Poor annual report
Other than this, Medican Enterprises Inc (OTCMKTS:MDCN) cited that the second property in the Phoenix, which is spread across 66,000 sq ft area, has ability to generate $2.34 million, which is without considering the company’s plans to lease it to a licensed marijuana grower. The company’s CEO Ken Williams appreciated the patience exhibited by the sellers of the two properties. But, investors are no more listening to the company’s faulty promises, which reflected in its stock price during the last session.
The stock of Medican Enterprises Inc (OTCMKTS:MDCN) nose-dived by more than 51% to $0.00625 as the average volume was recorded at 66.83 million on the day. The extension of the closing of the two properties followed the company’s poor annual report, which served as sufficient reasons for the investors to exit from the stock.