On Friday, the stock price of Medical Marijuana Inc (OTCMKTS:MJNA) declined 4% to close the week at $0.057 per share. The decline extended in yesterday’s trading session as the stock price declined more than 4% to close the trading session at $0.0550. The decline came at a share volume of 10.09 million compared to average share volume of 2.98 million. The closing price marks the lowest closing since late 2012.
It has been strong and thrilling couple of years for marijuana stocks on the OTC platform but it appears all this excitement, often taking the form of unfiltered hype, has been now disappeared. The majority of the OTC stocks that directed the first wave of marijuana stock runners are back to their late 2012 prices, before the boom in marijuana stocks began, Medical Marijuana included.
Cannabis Science Inc (OTCMKTS:CBIS) and Hemp Inc (OTCMKTS:HEMP) the two marijuana focused companies are both trading close to 4Q2012 price levels. The companies, who joined the marijuana boom later, backing on legalization euphoria in 2014, have also largely eroded any gains recorded in the last year and a half.
Despite numerous noteworthy positive Press Releases in this year so far, including a big announcement for a contract with the Brazilian government and one major acquisition agreement, Medical Marijuana is also trading close to its 2012 levels. The company is set to release its next quarterly report by mid-August.
If the quarterly numbers manages to surprise positively with some impressive numbers, tides may turn better for the company and its shareholders. As of now, it is evident that the company’s “Meals and entertainment” expenses for 1Q comprise 43% of the total FY2014 expenses mentioned under the same heading. In the last quarter, the company posted a net loss of more than $870,000. Until the report is released, Medical Marijuana’s shareholders have optimistic videos and Press Releases to go by.