Why NASDAQOTH: MJNA Could Go To $0.50 In 2018
MJNA is the first MMJ stock to list publicly. The company differs from others in the industry in that it is a holding company; its investments are spread between a half-dozen CBD-based product companies across multiple industries (i.e., pharmaceutical, cosmeceutical, nutraceutical, and industrial hemp).
The diversity of the MJNA portfolio is its most exciting asset for investors.
The MJNA list of subsidiaries and investments include:
- HempMeds (provides the U.S. with marketing and sales of CBD-based products)
- HempMeds Mexico
- HempMeds Brasil
- Kannaway (specializes in hemp-based botanical products)
- KannaLife Sciences (a CBD-based drug developer)
- Axim Biotechnologies (also develops CBD-based medicines)
- MPS International (a security consultation service for the MMJ industry)
- Wellness Managed Services (provides the MMJ industry with support services)
MJNA has complete ownership of its subsidiary, HempMeds. Its investments in Axim Biotechnologies and KannaLife Sciences grant MJNA access to retail sales of CBD product along with potential for significant return on investments should the CBD-based products of these companies have successful clinical trials. The diversity of MJNA stands out in an industry that often sees companies committed to a single product.
Axim Biotechnologies, ranked in 2016 as the top MMJ stock with a market cap around $200 million, plays a critical role in the success of MJNA. As of June 2017, MJNA owns roughly 22.67 million of Axim shares, a worth of approximately $227.6 million. The Axim feature product is an MMJ-based chewing gum aimed at treating specific diseases (one of them being multiple sclerosis spasticity, for example). Should this product candidate achieve regulatory approval, MJNA stands to gain significantly.
MJNA has yet to gain from its investment in Axim; however, largely thanks to Axim, the company more than doubled its total assets in Q1 2016. In the future, should MJNA look to sell Axim, the investment could provide the company with generous capital over a long period of time to continue funding acquisitions and operations.
Also working in MJNA’s favor is the openness of the Mexican government to legalizing MMJ products. Mexico passed legislation to legalize MMJ goods and now only requires the President’s signature to become law. MJNA could quickly stand to benefit from this North American MMJ expansion with HempMeds Mexico strategically positioned for distribution of CBD-based product.
It should be noted the stock comes with a level of risk, underscored by its history of gains and losses. Since its inception in 2009, MJNA stock has lost approximately 89% of its value, as well as seen impressive gains in certain periods.