Cannabis Science Inc (OTCMKTS:CBIS) Continues To Recover
tags: CBIS
Yesterday Cannabis Science Inc (OTCMKTS:CBIS) published a rather lengthy but extremely positive in tone press release. Investors appear to have been reinvigorated by it and as a result CBIS posted their third session in a row of gains closing the trading day over 14% in the green at $0.0160. The stock is currently trying to retrace its steps up the chart after close to 4 weeks of constant losses.
But let’s see what CBIS had to say in the PR – in order to get closer to its “vital laboratory resources, key distributors, and many patients” the company has decided to move its headquarters to Irvine, California. This move is also supposedly going to help CBIS cut its costs, decrease the time required to market new products, and allow the company to perform clinical trials more efficiently. In a rather strange twist, however, the very end of the press release states that the California HQ is going to be a temporary one with CBIS planning a future move to Washington, DC.
Not to mention that simply stating that you are targeting “so many critical ailments” and actually producing tangible results are two vastly different things. CBIS may issue as many PRs as they want but that alone won’t change their abysmal financial state. Cannabis Science finished the first quarter of the year with:
• $15,192 cash
• $341 thousand total current assets
• $4.76 million total current liabilities
• $2,925 revenue!!!
• $3.3 million net loss
Believe it or not the grim balance sheet is just the first in a long line of red flags. During the first three months of 2016 over 250 million fresh shares have been issued. Out of that amount 103 million were used as payment for services while 98.5 million saw the light of day through the exercise of stock options. If you go to page F-10 of the report you will see that these 98.5 million shares are freely tradable and were issued under the various Equity Award plans of the company. As of May 4 CBIS had 1.83 BILLION outstanding shares.
The risks surrounding the company shouldn’t be overlooked. Doing extensive research should precede any trades involving the stock.
