Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

AXIM's share price reflects on MJNA balance sheet

Right now, AXIM is extremely overpriced. It had revenues of $35K in the first nine months of 2016 and a loss of $6.1M over the same period, but has a market cap of $460M.

IMO, the reason for that high market cap is because the float is extremely thin, probably less than 2M shares, though the OS is 51M at the present. I believe that press releases from MJNA and trading manipulation -- to lock up more of the float -- have driven the price to $9 (from $0.35 in Oct) in order to allow MJNA to put something like $200M in assets onto their balance sheet at the end of this month.

Once the note conversion begins next Spring, AXIMs price will begin to fall, probably rapidly, and MJNA will have to make Mark-to-Market adjustments on the balance sheet. But to MJNA management, that will be okay, because they'll be able to show that big number on their annual report and possibly the 1Q/17 filing.

Those big numbers will make people think that MJNA is worth more than it is, which is why they said that HempMeds Brazil was worth $140M, despite paying less than $10M for it (and not showing any revenue from it in the year that MJNA has owned it).

Finally, and unrelated to the above, MJNA has $11.6M in convertible debt on the balance sheet right now, and I'm pretty sure that the stall in the stock price over the past few days is because the noteholder is converting some to shares. The higher price of MJNA and misconceptions about the company is keeping the price well above MJNA's true value of about $0.03/share, which will reduce the number of shares MJNA has to print.