MJNA: The First Publicly Traded Cannabis Company in the USA
Medical Marijuana Inc. (MJNA) is one of the largest companies in the cannabis industry focusing on medical marijuana products and services. This company has grown significantly thanks to smart investments. It has invested into and is the holding company of HempMeds, HempMeds Brasil, HempMeds Mexico, Kannaway, MPS International, AXIM Biotech, and Wellness Managed Services.
Medical Marijuana Inc. states that it is “a company of firsts”. It is indeed the first publicly traded cannabis company in the US. But MJNA is also the first to have established a global CBD pipeline to make cannabidiol and other beneficial cannabinoids available to people all over the world. It is also the first company to introduce medical cannabis products outside the country. They deliver them to Brazil, Puerto Rico, Mexico, and Paraguay. The list of their firsts could continue.
Profile and Development of MJNA
The hemp-based medical marijuana company was founded by Bruce Perlowin in March 2009. Its headquarters are in San Diego, California. During the years Medical Marijuana Inc. steadily grew its portfolio in order to broaden their business from customer products to research and development. In addition, their services also include: A licensing division managing proprietary testing, genetics, labeling, packaging, tracking, production, and methods of standardization for the medical hemp industry.
Later on, in January 2015, Medical Marijuana Inc. purchased Kannaway, the hemp, and marketing company, as well as its brand – Dixie Botanicals.
But in May 2015, Medical Marijuana Inc. secured an export agreement for their product, Real Scientific Hemp Oil through Brazil’s National Sanitary Surveillance Agency (ANVISA). Thus, they are the first American company to have achieved that. The changes in the law were issued due to two adolescent patients in Brazil suffering from seizures. The scientific community and members of the public received this historical move by the Brazilian government positively.
The CEO of the company, Dr. Stuart Titus praised the decision of the Brazilian government as an admirable example “responding to the humanitarian interests of its people by allowing them access to CBD hemp oil products that can treat the symptoms of conditions with no known cure or limited treatment options”.
Since then the company’s original role has broadened. They have expanded from setting up turn-key medical marijuana dispensaries to investing and purchasing CBD supplement brands, cannabis industry services, and phytocannabinoid research firms. They’ve done it all for being on the front lines of the cannabis revolution in the USA.
MJNA in Stock Market
Recently, buying stocks has become sort of a trend. I’ve heard many people discussing buying stocks. And what could go wrong with a flourishing company like Medical Marijuana Inc.? But it being the first company from cannabis industry to publicly trade their stocks doesn’t mean anything.
At the end of 2016, only 0.04% of Medical Marijuana Inc.’s outstanding shares were owned by institutions. It appears that company has the ability to maintain its stock price on OTC markets below $1.00 for extended periods. But it has raised its share count for about 1,261% from the end of 2009 till September 2016. However, throughout the beginning of 2017 up till now, MJNA stock price has been falling.
Cory Renauer states that Medical Marijuana Inc. is losing money. Just in 2014, it lost $2.6 million in operating, but in 2015 – $3.6 million. In 2016, MJNA lost $2.7 million, despite its expansion from financial and consulting services to the medical marijuana industry.
Even though the company seems to have gained stability, concerning its operating losses, it still has interest expenses connected with the debt. During 2016, it spent $6.7 million on servicing its debt. And operating costs still remain.
In spite of all the company’s expenses, Stockinvest.us states that MJNA stock has a chance “to perform well in the short-term”.
In the end, it only depends on you if you’re ready to take risks with MJNA stocks.