Medican Enterprises Inc (OTCMKTS:MDCN) is making a highly explosive move up on accelerating volume after the stock hit a recent all-time low of $0.01. The move up comes as a welcome reversal for MDCN which has been on a straight downward track since $4 at the beginning of 2014.
MNCN is a stock with a history of explosive moves running from well under $0.50 to a high of $4.36 a share at the height of the pot stock boom at the beginning of last year.
As we come into the season when pot stocks get hot MDCN is once again earning a place on investors watch lists. The stock has a lot of positives including Gary Johnson, the two-term governor of New Mexico, who owned and operated a construction company that helped build Intel Corp.’s Rio Rancho as director.
On January 9 MDCN filed a PRE 14C that stated the board of Directors had approved a plan to(i) To increase the Company’s authorized shares of common stock from 100,000,000 shares of common stock, par value $0.001 per share, to 1,000,000,000 shares of common stock, par value $0.001 per share;
(ii) To authorize a reverse stock split of all the outstanding shares of the Company’s Common Stock and at an exchange ratio not to exceed one post-split share per ten pre-split shares (1:10) to be determined at the discretion of the Board.
Medican Enterprises Inc (OTCMKTS:MDCN) is a bio-pharmaceutical company focused on developing, distributing and marketing pharmaceutical grade cannabis to the emerging global medical marijuana market. It’s wholly owned subsidiary Medican Systems Inc. is an industry leader in the design, construction and operation of Medical Marijuana and Cultivation Centers across Canada.
In recent news MDCN said that it has signed an agreement to acquire a 67,000 square foot facility in Phoenix, Arizona which the company plans to lease as a pot growing and warehouse facility to licensed growers.
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The industrial building sits on 2.55 acres of industrial zoned land. The anticipated final purchase price for the property is $2,340,310 and a closing is planned during the first quarter of 2015 pending, among other closing conditions, a variance to zone the building for the cultivation of marijuana.
The acquisition of this property will launch Medican’s real estate and leasing services business under which the company would lease real estate that is outfitted with turnkey solutions for legally compliant growing facilities to licensed growers. At current market rates the property is estimated to produce annual lease revenues of approximately $1,400,000.
The Company also said that is has not been able reach a mutually acceptable agreement with the various parties involved. As a result, the parties have terminated the letter of intent and the refundable portion of the deposit funds have been returned to Medican.
Drew Milburn CEO of Medican US, Medican’s subsidiary in charge of United States operations said “The Phoenix, Arizona building will be a great launch to our real estate leasing strategy, and we are extremely pleased to have progressed to this milestone, Medican US is quickly gaining momentum in the real estate and leasing services to the legal marijuana sector, and we are seeking additional acquisitions in the near term.”
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Currently trading at a $1.1 million market valuation MDCN has been highly volatile since hitting the $0.01’s at the end of last month initially bouncing to $0.06 level before another test of the $0.01 and move up. Although upward bound shareholders have to have the 8k on their mind which said there will be a reverse stock split and AS will be raised from 100 million to 1 billion. On the other hand we are coming into the time of year that pot stocks get hot and MDCN led the sector this time last year and we cannot forget director Gary Johnson, a well-known public figure and long term legalization advocate.
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Disclosure: we hold no position in MDCN either long or short and we have not been compensated for this article.