Cannabis cultivation company MJ Holdings Inc (OTCMKTS:MJNE) did not have a great time in the markets on Tuesday and its stock fell by as much as 5% as investors engaged in a bit of a selloff.
Market Action
On Tuesday, MJNE stock fell 5% at $0.3910 with more than 47k shares, compared to its average volume of 51k shares. The stock has moved within a range of $0.3515 – 0.4295 after opening the trade at $0.4295.
Set to Move Forward With Plans to Lock in 1 Million Square Feet of Indoor Cultivation and Processing Space
However, at the same time, it is important to keep in mind that the company is currently working on creating the biggest outdoor, indoor and hybrid cannabis cultivation plants in the United States at this point. Could the latest decline in the stock in fact be an opportunity for investors? Yesterday, the company announced that on October 28 MJ Holdings representatives had a meeting with their counterparts from the Town of Amargosa Valley, Nevada.
After the meeting, the company was given permission to develop The Farm for a period of five years. It goes without saying that it was a major development for the company and one that could propel its cultivation activities to new heights in the coming years.
It should also be noted that the approval covers an area that spans over an area of 100 acres and could give MJ Holdings an area of as much as 1 million square feet for the purposes of indoor cultivation.
Key Quote
“We are thrilled to be a part of something this major. Collaborating with these experienced groups to take the cultivation and production of cannabis to the next level is essential in our aim to become one of the largest grow facilities in the U.S.,” Roger Bloss, CEO of MJ Holdings stated. “This status will allow us to provide abundant job opportunities to the Amargosa Valley region. In conjunction with the Farm, we plan to help support the community by providing reduced-rate housing to our employees at the Tiny Home Community (THC) RV Park. The park will be fully equipped with a clubhouse and pool and offer convenient living options. We anticipate about 100 employees and have nearly 100 available spots at the park equipped with electricity, gas and plumbing hookups. We are excited to afford our employees and the greater community with an affordable, quality living experience.”
Traders Note
MJNE stock is trading below the 200-Day and 20-Day Moving averages of $0.51 and $0.40 respectively. Moreover, the stock is trading below the 50-Day moving average of $0.40. The stock is up 9% over the past 3-month.
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