Medican Enterprises Inc (OTCMKTS:MDCN) is moving steadily lower on accelerating volume towards its 52 week lows of $0.01. This one has a history of big 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 2014.
In recent news MDCN said that the Company and JTB Real Estate LLLP have agreed to extend the closing date of the previously announced acquisition. The acquisition of the 7,200 square foot retail and commercial property in Phoenix, Arizona was detailed in the press release dated January 20, 2015. The building acquisition brings near-term revenue and cash flow potential. Both parties are aggressively working together to close on or before March 31, 2015.
Many suggest that pot stocks will get hot soon; according to a recent report from MMJ Business Daily, 2015 is expected not only to see more investment dollars flow into the market but it could even outpace the growth rate seen in 2014. States like Nevada, Illinois, Massachusetts, Oregon, and Alaska have all been identified as industry drivers this year. Furthermore, the rise in “big money” from some major investment funds has just started to hit the sector.
The major catalyst however for 2015 is expected to be the rescheduling of marijuana out of its current Schedule I classification. In October U.S District Judge Kimberly Mueller heard testimonies during a five day evidentiary hearing aimed at determining if the Schedule I dangerous drug is unconstitutional.
The ruling is expected to come sometime later this year and many expect to see a domino effect for the entire pot sector culminating in treasury issuing rules and regulations for working with marijuana businesses. Once they are able to use banks the entire business is expected to really take off.
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.
To Find out the inside Scoop on MDCN Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
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.”
We have a Monster Pick Coming. Subscribe Right Now!
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.
Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!
Disclosure: we hold no position in MDCN either long or short and we have not been compensated for this article.