As 2016 closed last week, the Medical Marijuana Inc (OTCMKTS:MJNA) climbed higher in the market with updates on the operations. The company promised of an upside potential with announcement of its expansion in south and Central American markets. This announcement added much value to the company’s stock in the last week of 2016.
What made it positive for the company?
First of all, the company announced that Mexico has relaxed its cannabis regulations. This is just a part of good news. Going forward, the company is also planning to build operations there by stepping a strong foot in Mexican markets. At present, the only product that it is selling in Mexican markets is Real Scientific Hemp Oil-X, which is also the first federally approved product.
The company is waiting to launch Real Scientific products there. Now that Mexican regulations have eased, the company will start focussing on its Mexican revenue.
Expansion of HempMeds into Argentina and Chile
Apart from Mexico, the company is also looking into Argentina and Chile markets with expansion of products that pertain to HempMeds. Meanwhile, the company also announced selling the same product in Brazil as well. So, this means that in the downward side of the U.S., Medical Marijuana Inc is in a stronger position.
Strengthening the Brazilian and Mexican foothold would mean real positives for the company. It would indeed indicate some real deals for the company, in terms of revenues. With international distribution, generation of revenues, some great products waiting to be launched and a positive mindset means that the company is in a position to strengthen base.
It is nevertheless seen that the cash is a problem for this one. There may be some dilution in place, but with the ability to raise its structure, the management can strike a good 2017 with momentum.
The future of the states that legalize the medical and recreational marijuana is what would be looked out for. South America is another important market to watch.