JohnCM Investment Corner

[JohnCM]

Re: Medical Marijuana (MJNA)

I wouldn't put the cart before the horse. Or count your chickens. (re: uplisting on the OTC or to the NASDAQ).

Clearly there IS AN ISSUE with the company reverse splitting their shares. I assume there are investors who will not allow this to happen.

If anyone has any company information on this, please share.

This is what I believe. Investors who are currently holding, or have warrens to purchase, MJNA are fairly comfortable with the support level of $0.01 to $0.03. (Currently $0.0148).

IF they split shares, say 1 for 200, the new share price would be approx $2.96 and the shares outstanding (currently 3,800,000,000) would stand at 19,000,000.

After a share split, depending on the reasons, either the price will climb or fall. (Those that climbed CDE mines and EGO come to mind). Many, many OTC stocks priced at 0, 00 and 000, simply saw their share price continue to drop. This is typically in the case where companies have to continue to sell company shares in order to keep the lights on. Another option for them is to increase the authorized number of shares. But, this does not work if the share price hits bottom at $0.0001.

IF MJNA split, there would be a 50 percent chance the stock price would settle down to $2.50, then $2.00 and then $1.50.

In today's terms, a post stock split price of $1.50 would equal $0.0075 today.

I have not been following MJNA recently because I would not touch it. But last I looked they would have to clean up the accounting, financial side. I simply do not understand why they do not make a push to be a legitimate company due to their producing of actual revenue.