Marijuana Company Of America Inc (OTCMKTS:MCOA) shares slid 17.07% on Monday to $0.0480 and were flat 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 $48.86 million at 1.40 billion shares outstanding.
Marijuana Company of America 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.
For now, the company is 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 line with this, 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 and offers collectives and dispensaries in legal medical marijuana states marketing and managed services designed to improve membership and transactions.
One of its main products is hempSMART Brain, which is formulated with CBD or Cannabidiol as the core ingredient combined with high quality, branded ingredients to compliment the CBD to support brain health in order to meet the growing demand for products with medicinal benefits that assist in brain function. It is the only product of its kind for now with a synergistic blend of verified natural brain support ingredients, blended with water soluble CBD to provide optimal bio availability for brain support and protection.
“The MCOA- hempSMART team have worked diligently to bring this product to market, and we are now ready to share it with the world,” remarked marijuana company of america ceo donald steinberg.
This product was launched in November 7 with a full website launch. It has also started shipping this month, following a positive vote for several states to legislate marijuana for medical or recreational use. This has resulted to strong rallies for cannabis shares, although these gains have recently tempered on profit-taking.
Of course this doesn’t mean that the rally in cannabis shares is over, as the correction likely offers opportunities for more buyers to join the climb at better levels. On the company’s website is an aggressive campaign to bring distributors on board, which would increase the market share of Marijuana Company of America in terms of selling hempSMART brain and similar products it develops.
In particular, Marijuana Company of America is offering a discount-to-retail to individuals that come on board as distributors then encouraging those distributors to sign up a team of level-down distributors, sharing a percentage of the revenues generated from their team. This is similar to the strategy employed by Herbalife, which has proven to be effective for the company and even brought it up to nearly $5 billion in valuation.
On the pair’s daily time frame, it can be seen that the initial pop higher has already been faded but volume remains strong. This suggests that investor interest in Marijuana Company of America has been sustained and could continue to fuel more gains in the coming months, especially once we get initial numbers on how their first few shipments of hempSMART Brain are doing and whether or not orders are rising.