In last week of February, Medican Enterprises Inc (OTCMKTS:MDCN) confirmed that it received a zoning approval for its marijuana commerce activities in 67,000 Square Foot Arizona Commercial Property. Ken Williams, the Chief Executive said that it is a significant achievement for the company to acquire zoning approval. With it, the commercial deal meets the set guidelines and the management is moving forward to complete the due diligence process. The transaction was expected to close by end of 1Q2015, and till this time there is no confirmation from the company on the deal.
Medican Enterprises Inc (OTCMKTS:MDCN) possess a loyal fan base on message boards who believe that there is no problem related to the company’s operations. It is operating in growing marijuana sector and the future is bright for the company and its shareholders. Any sort of negative momentum is blamed on so called “bashers” or “short-sellers.”
The excitement and hype linked to the Medican Enterprise on the social media and message boards acted as a support for the declining stock. It helped MDCN stock price to come out of triple-zero land and trade around the current levels. However, the supporters have totally ignored the problems associated with the company.
Ban from BCSC
Recently, The British Columbia Securities Commission gave the halt trade order on the Medican Enterprises Stock. BCSC noticed ‘unusual & unexplained fluctuations in the volume’ due to which it released the halt order. As per the order, the people who reside in British Columbia cannot trade in MDCN stock until April 22, 2015. However, those who reside outside British Columbia don’t need to follow the halt order.
Here, the main concern associated with Medican is the purchase deal of commercial land in Arizona. The deal closure has been delayed three times. First it was expected to close in February, then in March. However, the company missed all deadliness and still there is no update on the matter.