Marijuana Company Of America Inc (OTCMKTS:MCOA) shares advanced 34.74% on Friday to $0.102 then retreated 14.87% to $0.087 in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.20. The company has a market cap of $171.78 million at 1.58 billion shares outstanding.
Formerly Converge Global Inc, Marijuana Company of America Inc is a development-stage company. It is a cannabis marketing and distribution company that distributes medical cannabis products and provides product sourcing, branding, payment, distribution and knowledge through an architecture structure to maintain customer loyalty and capture market share.
The company is also developing a knowledge base complete with information from subject matter experts, medical articles and opinions, current articles, YouTube and other videos, blogs, and industry news and papers. In particular, it provides information on strains, and other processed products that will be available through its club. It will track industry and consumer information and post to its social media and online knowledge base. It offers collectives and dispensaries in legal medical marijuana states marketing and managed services designed to improve membership and transactions.
Share prices have popped higher since the November 8 vote that legalized the use of medical or recreational marijuana in several US states. This has led analysts to project that the marijuana industry would grow to $20 billion in 2020 and at least to $1.7 billion this year. Several companies have also jumped in the bandwagon, with some shifting their focus to tap into this booming market, opening the potential for Marijuana Company of America Inc to work with more firms in the sector.
The company’s stock also got another boost on news that it is pursuing listing on a higher exchange. It has reportedly decided to also go for Securities and Exchange Commission registration statement filing through their legal counsel.
Our goal is to be a fully transparent reporting public company,” said Marijuana Company of America Inc CEO, Donald Steinberg. “As we grow and take these major steps, we want our shareholders to be well-informed about our plans and our progress. By becoming a fully-reporting, transparent public company, we may be better positioned to enhance stock liquidity and attract institutional investors, which will fundamentally enhance the value of our company.”
Being listed on a higher stock exchange can allow the company to attract not just more number of shareholders but better liquidity. The company is now turning its attention to the auditing process and has reportedly engaged the services of a CPA firm to complete a two-year audit of its financial statements as part of the process of preparing to become a fully reporting public company with the intent of uplisting to a higher reporting exchange.
“Completing this audit will help ensure the accuracy and completeness of the Company’s financial information, and also help to identify and strengthen internal controls over financial reporting,” noted Steinberg.
In operational news, Marijuana Company of America Inc has recently commenced generating revenue and started to ship orders for its hempSMART Brain product after its launch in November. The auditing process should provide more details on how the sales are turning out and whether the company can be eligible or not for uplisting soon.
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