Medican Enterprises Inc (OTCMKTS:MDCN) had been making significant progress in the stock market until the closing of March. The start of April saw it desperately trying to avoid a red close and as the month moves on, the stock has grown silent. The growth was inspired by the company’s latest announcement, to have received zoning approval for their new facility in Arizona. The news of expansion caught the attention of investors looking for penny stock in the cannabis industry. While the people on the message board believe that the fall was expected and is in accordance, with the company’s plans, not everyone agrees, with them.
The British Colombia Securities Commission was the first to act on this news. They analyzed the volume and saw some unusual fluctuations, forcing them to halt the company’s trade. One of the problems that the stock is facing is the absence of the financial report of 2014. The company has delayed in this filing the results, and some investors are starting to feel that they are being deceived. Additionally, since 2Q2015 has already started, the investors expect the financial report for the first quarter as well, which would inherently be delayed.
Another problem that the company needs to look into is the problem of dilution. The company has had its fair share of stock dilution before, but it keeps on doing so to increase investment. However, the company does have a record of fulfilling promises, even if they are late. The acquisition of the property in Arizona was due to be completed in January, but the date was later moved ahead since an agreement could not be reached.
The financial report for 3Q2014 was not so encouraging, and if FY2014 does show the same trend, it might make the company lose more value. The company has requested for late filing, with the final delivery date being April 15, 2015. The turnout from this report would make the picture clear and investors should find it easier to make decisions.