Marijuana Company Of America Inc (OTCMKTS:MCOA) shares jumped nearly 35% to $0.102 on Friday then retreated 14.87% to $0.087 in after-hours trading. The company has a market cap of $17.78 million at 1.58 billion shares outstanding.
This is in keeping with the stock’s surge since the November 8 vote legalizing the use of medical or recreational marijuana in several US states and reports that the company is seeking to be listed on a higher exchange. This would allow them to have access to more shareholders and benefit from increased liquidity.
“Our goal is to be a fully transparent reporting public company,” said Marijuana Company of America Inc CEO, Donald Steinberg. “As we grow and take these major steps, we want our shareholders to be well-informed about our plans and our progress. By becoming a fully-reporting, transparent public company, we may be better positioned to enhance stock liquidity and attract institutional investors, which will fundamentally enhance the value of our company.”
Marijuana Company of America Inc has reportedly engaged the services of CPA firm L&L to conduct a two-year audit of the company’s financial statements which is necessary in becoming a fully reporting public company with the intent of uplisting to a higher reporting exchange.
“Our goal is to be fully reporting on the most reputable exchange we qualify for, so our shareholders have all the information they need to follow our progress in detail,” continued Steinberg. “Completing this audit will help ensure the accuracy and completeness of the Company’s financial information, and also help to identify and strengthen internal controls over financial reporting.”
This is expected to carry on for a few months while the company rakes in revenues from orders for its hempSMART Brain product which was launched in November. This marks its inaugural product launch, on top of the various services and revenue streams it generates from the cannabis industry. This sector is expected to grow to $1.7 billion this year and as much as $20 billion by 2020, attracting startup firms and investments from other existing companies seeking to profit from a potential boom as well.
Marijuana Company of America Inc is a development-stage company formerly known as Converge Global Inc. In particularly, 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.
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. Through 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. It offers collectives and dispensaries in legal medical marijuana states marketing and managed services designed to improve membership and transactions.