MaryJane Group Inc (OTCMKTS:MJMJ)‘s stock was able to regain some of its strength yesterday after it suffered a steep sell-off over the last couple of sessions. The massive downside in the company’s share price was the result of its upsetting press release circulated during the last week. In the said press note, the company stated that it had called-off its 2015 CannaCamp resort project in Durango, Colorado.
The news came as a shock to the investors, who had set high expectations from the company’s planned venture. MaryJane Group Inc (OTCMKTS:MJMJ)’s Joel Schneider informed the stakeholders that the location did not meet the company’s standards. He added that their land partners failed to lock the 170-acre ranch in Durango, as earlier committed. The company reassured the investors that it is exploring other locations in Colorado so as to bring its CannaCamp concept live for summer 2016. However, the reassurances failed to relieve investors, which was reflected in the stock price.
The company noted that its guests, who had booked for CannaCamp stay, will be able to avail complimentary stays at any of the company’s Bud_Breakfast location across Colorado. MaryJane Group Inc (OTCMKTS:MJMJ) also tried to reduce the impact of the unsettling news as it announced the addition of Hotel San Ayre in Colorado Springs. But, such rescue attempts did not fix the investors’ anxiety.
Apart from the cancellation of CannaCamp 2015, another concerning factor attached with MaryJane is the amount of share dilution. The company has diluted 1600% of its share in between March and June while its authorized shares were increased to 2 billion recently. Clearly, this reflects that the company has more authorized share capital to take dilution further up.
The stock of MaryJane Group Inc (OTCMKTS:MJMJ) rose by nearly 18.30% to $0.00200 during the previous session as 102.78 million shares changed hands.