There is no respite for Medican Enterprises Inc (OTCMKTS:MDCN), which has been trading down continuously over the last few months. The stock managed to gain traction in March when the talks grew about the company’s probability of giving its Arizona properties on lease to licensed medical marijuana dispensaries. However, the buzz was suppressed as the company failed to come up with any clear decision in this regard.
The quarterly report
Moreover, Medican Enterprises Inc (OTCMKTS:MDCN)’s recent quarterly report is yet another blow to investors’ expectations. The company’s cash balance as on March 31, 2015 stood at $9,398 as against $229,755 it held during the last year. Also, the company’s net loss for the period March 31, 2015 extended to $108,672,249 from $30,395,107. The company cited the reason for higher net loss as the loss on revaluation of derivative liability. At the same time, the company has been continuously pushing the deadline with respect to its Arizona properties, turning investors hopes into disappointments. The company also announced a reverse split in April in the ration of 1:10, which was the final nail in the coffin.
Acquisition raises doubts
During April end, Medican Enterprises Inc (OTCMKTS:MDCN) attempted to arrest the fall by announcing that it is considering the acquisition of branding company named TWYNS Products Inc, which is engaged into marijuana field. The company did complete the acquisition in time. However, its actions failed to spur interest in investors. Also, fingers are already pointed at the stated acquisition, which does not have a proper website of its own and is believed to be formed just days before the acquisition.
Over and above this, the company’s share dilution is reaching heights, by growing from just over 40 million in April 2014 to 447 million in April 2015. The impact of the reverse split was momentary as the number of outstanding shares again grew from 44 million to 146 million within a month. The stock price of Medican Enterprises Inc (OTCMKTS:MDCN) was down by 4.65% to $0.00410 during the previous trading session as a total of 19.27 million shares changed hands.