On Monday’s trading session, the stock price of Medican Enterprises Inc (OTCMKTS:MDCN) extended Friday’s losses and crashed more than 26% to close deep in red. The stock is trading just close to the threshold of triple zero land.
However, the stock took a breather on Wednesday’s trading session and surged more than 9% to close the trading session at $0.00120. The gains came at a massive share volume of 133.08 million compared to average share volume of 50.58 million. If the momentum of ticker of last two weeks is analyzed, it seems that soon Medican stock will fall below its current levels to enter into triple zero land.
The performance
There is nothing to keep Medican stock price afloat, even when considered the lax standards of the OTC marketplace. As per the latest financial report for the period ended March 31, 2015, Medican reported cash of just $9,298. It is a horrible picture of cash reserve that a company operating in a growing industry can have. The total current assets and total current liabilities came at $73,000 and $9.7 million. The company reported no revenue while net loss was $108 million.
The financials looks horrendous but when compared to dilution statistics appears much better. As of April 15, the Registrant had company’s 447 million outstanding shares of common stock. Medican opted for a one for ten reverse split which brought the common stock number to almost 44 million in the third week of April. The number of shares of Medican’s Common Stock outstanding as of May 20 was 134 million.
Word of caution
The volume of 209 million shares recorded on Monday’s trading session highlights the dilution problem of the company. It indicates that the current share number is almost certainly higher than the count disclosed in filings submitted just two weeks ago.
