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OPINION: Can Maricann Come Back From the Dead?

Nobody really knows what happens when we die – some believe in an afterlife, some believe in reincarnation and others simply think nothing happens. You just die.

Some have had experiences of a white light, a tunnel, a voice, some have even claimed to see hell. As for Maricann, we are still unsure.

Medical Daily says: ‘The final classification of hemorrhaging, Class 4, occurs when a person loses over 40 percent of their blood volume. A hemorrhage so severe requires immediate and major resuscitative help. The heart will no longer be able to maintain blood pressure and circulation, so organs will fail and the patient will slip into a comatose state preceding death.’

I know one thing for sure, if Maricann’s luck can increase to a 40% loss of its value, investors would be joyous. Its stock price has been hemorrhaging over the past few months; down a whopping 60.71% from its 52 week high earlier this year, and no amount of paid promo has been able to stop the bleeding.

Short Term Or Long Term Bleeding?

This begs the question: can Maricann come back from the dead? There are really two possible situations at play here. One, this is a short term blip based on a temporary loss of excitement from investors, or, this is long term and the company is actually in deep trouble. I believe this is a long term issue based on a pattern of questionable behaviour from the company. If there is one company in this space that would be poised to be the subject of a drama film, look no further than Maricann. The script writes itself.

Let’s dig into the autopsy report.

Maricann’s suspicious behaviour began in August 2017 where a press release regarding a “primary collaborative partnership through a joint initiative” with McKesson Retail Banner Group was retracted.  Fifteen days later they re-issued the release, this time with the other party being undisclosed. This version outlined it only as an LOI.

The following month Maricann issued a press release about an unfortunate event where they lost a significant amount of their crop due to weather, however, this occurred in March (6 months before the news came out) and was responsible for a significant amount of lost revenue. The backlash from this news resulted in the company having to reprice a convertible debenture deal that was pending at the time of the release.

 

Insider Selling

As we move down the body, let’s take a look at the insider selling that occured between January 22-25, 2018. The company then filed for a $70,000,000 bought deal a few days later on January 29, 2018 at a price of $4.00 per unit. It was around this time that we interviewed Maricann and after publishing the piece were called 6 times by Maricann IR in a panic to take the piece down as they had said something they shouldn’t have in the interview. I took the piece down out of courtesy as everyone makes mistakes, however, this combined with the insider trading put them on my red flag list which I doubt they will ever get off of.

Cue the violins.

From The Globe & Mail: ‘The alleged trading occurred through entities either indirectly held or controlled by Mr. Stone and Mr. Tabatznik. Combined, the two men sold about 4 million shares in the week leading up the equity financing, according to the OSC letter, citing insider trading disclosures.’

Also, to make things even sweeter, Maricann’s CEO Ben Ward is the subject of an investigation by the OSC into his activities while he was CEO of Canadian Cannabis Corp. As I said above, the script writes itself.

Hiding The Body

Maricann then quickly doled out $30,000.00 to CFN Media for some promo, and Ben Ward made attempts to appear transparent on Reddit and Facebook to the now skeptical retail investor, but did it work? That very Facebook group he presented himself in has since been deleted.

On April 13th, 2018 Ben Ward appeared on James West Midas Letter show to give a canned and undescriptive answer to a James West softball question about Maricann’s insider trading. Of course, no follow up questions were asked. The interview progressed smoothly from there on as if everything at Maricann was just damn peachy.

In an AMA on May 16th, 2018 Ben was asked:

‘Can you provide some clarity on the true status of Phase 1? Maricann’s investors deck states Phase 1 is complete, yet in Maricann’s earnings report it states that only a portion of Phase 1 has been complete, with the remainders projected to be completed in Q4. Wasn’t Phase 2 supposed to start Q2? Why the delay?’

This question was upvoted 67 times as the highest voted question in the thread. In contrast, Ben’s following response garnerd a -6 vote:

‘Funding for Phase 2 & 3 relies on future cash flow, it’s not just from current cash on hand. We will build the shell and as ready, complete the internal sections of the cultivation operation.
Phase two excavation and foundations have begun. TSX uplist application made, no definitive timeline yet.’

Essentially, Maricann is making projections based on money that does not exist.They will also not give a transparent answer as to why there have been such delays in their expansion promises. Perhaps they can put out a press release 6 months down the line to further explain the situation.

 

Have Investors Lost Faith?

The Maricann investor Facebook group was recently deleted and many of its strongest supporters have jumped ship and are moving on to other companies. All is not lost though, if you prefer Instagram to Facebook, you can follow Maricann and see a new post every 132 days.

Maricann continues to be one of the most controversial discussion topics in cannabis investing forums across the web between its naysayers and long term devotes whose bags would be heavy enough to cause major low back pain. In contrast, those who SOLD Maricann at the top can breathe easy, just like this lovely stock image yoga girl from their latest Instagram post some 13 months ago. #yoga #lifestyle #cannabis #wearecurrentlylookingtohireasocialmediapersonjanuary2018

In closing, only time will tell if Maricann can be resuscitated. Perhaps one of the larger LP’s can do some mouth to mouth to get this operation back on track. Maricann isn’t the only one suffering though, most cannabis stocks took a huge hit earlier this year. That being said, many have either somewhat recovered, or, are showing signs of life again. With Maricann down over 60% since then, things are not looking so bright for the once ‘undervalued low cost producer’ cannabis company with so much future potential.

 

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