Cannabis Science Inc (OTCMKTS:CBIS) Announces New Products

In a PR published early in the morning on Wednesday Cannabis Science Inc (OTCMKTS:CBIS) revealed that they are set to release seven new cannabinoid-based animal care products through the company’s Equi-Pharm LLC subsidiary. Despite being a rather major event for CBIS the news failed to create any excitement around the stock. In fact on the day of the PR the ticker closed just 2.4% in the green while yesterday, on the very next day, it suffered a correction of nearly 5% dropping down to a close at $0.02.

The lack of a positive reaction from the market is far from surprising. CBIS have been telling us that they are set to release new products since the very start of 2015. The company was supposed to start distributing its products in California as well as Europe but so far there has been a distinct lack of any progress. Not to mention that Wednesday’s PR didn’t actually give any information about the animal-care products apart from the fact that CBIS will sell them through an e-commerce website that should be launched on December 1.

Maybe this time everything will go according to plan and CBIS will start generating revenues but will this be enough to offset the rest of the company’s financials? Especially when you take a look at the financial report for the quarter ended June 30 and see that back then CBIS had:

• $2,504 cash
• $177 thousand total current assets
• $4.2 million total current liabilities
• ZERO revenues
• $6.1 million net loss

In the next couple of days the next quarterly report should be submitted but a delay wouldn’t be that unexpected. After all, the previous financial report was supposed to be completed by mid-August but was actually filed on October 9.

While investors are waiting to see if this time CBIS will actually deliver the dividends it promised they shouldn’t forget that the compensation committee of the company has approved the issuance of 163 million shares to various individuals and companies just for the period between January 1 and April 30. Among said individuals are some of the directors and officers of company as well as the former CEO.

Any trades involving the stock of the company must be preceded by extensive research. Take the necessary time to assess the various risks before putting any money on the line.