Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Some of your numbers just plain wrong, Ospreyeye

MJNA increased the Outstanding shares for 598.6M to 808M......

that = an increase in the # of shares last Qtr by 209,400,000.........MJNA increased the OS by over 1/3.....over 33% increase in OS in 4 months......ouch.....talk about DILUTION......

MJNA market cap increased from $213,100,000 to $287,648,000 from the new shares added to the OS.......

That = $74,548,000 MJNA pocketed this QTR selling shares.......not a bad business model.....

While your opinion on a high market cap may be valid, the numbers, assumptions and calculations above are wrong.

Shares Outstanding:

As of Sept 30, 2012, according to page 4 of the 3Q report, there were 736.5M (736,448,227) shares outstanding, not 598.6M. You understated the actual number of outstanding shares at the end of Q3 by 137.9M shares.

As of the end of Q4/12, the company now reports that the number of
outstanding shares at 808.2M (808,238,318) shares, which is an increase of 71.7M shares, or 9.7%, not 33% as you state.


Market Cap and money MJNA "pocketed":

Yes, with 808.2M shares outstanding, and at yesterday's closing price, the market cap is approximately $291M, but that is the value of shares held by shareholders, not money in the pocket of $MJNA.

Sure, if MJNA gave or sold 71.7M shares to someone in Q4, when the stock was at about $0.11, then the value to the company (what they pocketed) was about $7.9M, about 11% of what you claim.


Finally, Caring about Shareholders and Dilution:

Companies, especially when they're just starting out and growing, don't really care much about shareholders. They will do what they need to do to grow their business and market share.

Selling shares to raise capital in order to grow is a perfectly acceptable way of doing business.

If the shareholders profit immediately and handsomely from that, then great, but it's normally a long slog.