MJNA stock: A Marijuana-Scented Penny Stock Scam or the Real Dealer?
Medical marijuana is a growth sector and Medical Marijuana, Inc. (MJNA) is a hot stock in the legal pot business. It closed today at 6.6 cents with a 127% gain. The company announced a deal to obtain $4 million in financing from CannaBANK.
MJNA is an interesting penny stock. The company provides business management solutions to the hemp and medical marijuana industries. Marijuana stores, often called dispensaries, can use MJNA for turn-key management solutions and marijuana testing and grading.
The grading is more involved than having two stoners on a couch deciding how good the marijuana is but, marijuana, even when used for medical purposes, is an illegal drug in the eyes of the federal government. That makes it tough for these companies like MJNA to obtain financing – big banks don’t want to deal with them because they can be accused of money laundering. Medical marijuana businesses that are legal under state laws can find it impossible to open a checking account since banks are regulated under federal laws.
CannaBANK has stepped into that financing as a private equity firm dedicated to the cannabis and hemp industry. The company specializes in the capitalization, development and acquisition of medicinal cannabis and industrial hemp businesses.
For the fourth quarter, MJNA reported sales of more than $430,000. But because the business has trouble setting up legal bank accounts, it’s tough to tell where the money is going. They reported that they had cash totaling only $24,000 on their balance sheet and that means they will need to keep raising money through financing deals.
Terms of the deal with CannaBANK weren’t released. MJNA isn’t current in their SEC filings so there’s no way to really see how profitable they are. There’s just no way to easily evaluate the company. Some medical marijuana businesses that seem legal under state laws are being shut down under federal laws. It’s a confusing industry.
Penny stock investing is challenging enough without adding confusion about whether or not a company can even legally exist. MJNA traded as high as 23 cents a share in the past 52 weeks and as low as 1 cent…with no real way to analyze the business, traders really can’t figure out what it’s worth.
I’ll keep digging and I’ll let you know if I can figure it all out.
MJNA is an example of the “real deal” coverage I offer. If you want to get more trading ideas and details on other hot upward moving stocks, click here and enter your email (never any spam or “partner announcement” BS) Click here to sign up –> penny stocks <—-
Don’t ever invest based on what I say, do your own research and consult with a licensed professional before investing, only invest what you are prepared to lose. Any statements and opinions given are amateur and biased and should be treated as such. Past performance does not indicate future performance in any way. Check the latest SEC filings before investing, and research other information on the risks of investing in penny stocks at www.sec.gov
READ IMPORTANT DISCLAIMER
Disclaimer – This newsletter is a paid advertisement, not a recommendation nor an offer to buy or sell securities. This newsletter is owned, operated and edited by IPR Agency LLC, a California Limited Liability Company. Any reference to “we” or “our” refers to IPR Agency LLC. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and are therefore unqualified to give investment recommendations. Always do your own research and consult with an licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Companies with low price per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website. We do not advise any reader take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on EOD or intraday data. This publication and their owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices. At the time this communication was published, we have not been compensated for the mention of any companies discussed in this communication. It is possible in the future we will be compensated to conduct investor relations marketing for the company discussed in this communication, in which case our opinion may differ from the opinion stated in this communication. We are frequently compensated cash to conduct investor relations marketing for the companies we profile and alert by the companies directly, or from third parties. The vast majority of these payments are from third parties. This compensation is a major conflict of interest in our ability to be unbiased regarding the company(s) discussed in our alerts. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the third party or parties. The third party, profiled company, or affiliates of either likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. IPR Agency LLC never owns a position in the companies discussed in our communications, email or otherwise, unless otherwise stated in this disclaimer. At the time this communication was published, we have not been compensated in any way for the mention of any companies named in this communication, and we own no position in any of them. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. The investor relations marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. Our emails may contain forward looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our email newsletters and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way to ensure the publicly available information is correct. Furthermore, IPR Agency LLC often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information in our written communications. The information in our disclaimers is subject to change at any time without notice. See full disclaimer at www.pennystockalerts.com/disclaimer