The people who have invested their money in Medican Enterprises Inc (OTCMKTS:MDCN) in the past few trading session would be a bit concerned at the moment. The share price did posted an impressive run couple of weeks ago when it surged above the triple-zero levels and touched the mark of $0.05. However, the last week has been nothing more than a disaster for the company’s stock price. IN last trading session, MDCN declined more than 7% to close the trading session at $0.0155. The share volume was 14.56 million compared to average volume of 62.77 million.
The momentum in past few trading sessions indicates a relative poor performance. However, a large group of people seems unfazed at all. They consider that it is just a small pullback and that too will dissipate as soon as Medican closes the acquisition deal of an industrial property based in Arizona. It is good thing to be optimistic but it is really fatal to be overconfident despite knowing the actual figures.
The hopes and reality
The people invested in Medican should know that Medican announced its acquisition plans in January 2015, and the closing date of deal has been postponed twice. IN the last announcement, it claimed that the deal will be concluded before the end of the March. It again was not met by the company. The missing deadlines along with delay in the submission of 10-K has been creating problems for the company. Also, the previously disclosed reverse split turns Medican into a risky proposition.
In March 2014, Medican Enterprises Inc (OTCMKTS:MDCN) announced its plans to buy a 50% stake in a Canadian firm “International Herbs Medical Marijuana Ltd.” It was expected to provide the company with instant access to a large scale facility and a well-established distribution and marketing distribution channel. The closing of deal was postponed numerous times and as per the latest 10-Q, there is no surety about completion of the deal.