Cannabis Science, Inc. (OTCMKTS:CBIS) Finally Submits Quarterly Report
After sliding for two days in row it seemed that the negative momentum of Cannabbis Science, Inc. (OTCMKTS:CBIS) will continue during yesterday’s trading. At the start of the session the stock slid down below the 10 cent mark but after an hour it started rallying, surged upwards and at the time of the closing bell was sitting 10% in the green at $0.117.
The sudden reversal was caused by a new PR from the company discussing their current operations and even more importantly CBIS submitted the quarterly report for the first three months of the year. According to the press release the last quarter was so successful that CBIS has never been in a better financial health.
Such strong words for a company that at the start of the year had $943 in cash certainly got us curious. That is why we turned to the freshly submitted financial report, that was nearly half a month overdue, and we found that at the end of March CBIS had:
- $866 thousand cash
- $1.4 million total current assets
- $4.1 million total current liabilities
- $1031 revenue
- $5.8 million net loss
Well, we must admit that we were rather perplexed. Certainly the increased cash reserves of the company were a rather important improvement but unfortunately they are far from enough to cover the company’s expenses even for a quarter. The net loss is also more than 3 times bigger than the one from the same period last year. The accumulated deficit is closing in on $100 million without the company getting any closer to a completed product. Not to mention that as we have said on numerous occasions the dilution of the common stock is reaching alarming levels. Currently CBIS are sitting at 8444 million shares out of the 850 million authorized.
Despite the rather depressing performance of the company the management team is continuing to issue themselves millions of free trading shares. On April 28 CBIS filed an S-8 form registering 6.5 million shares as a stock compensation plan. Just 2 days later 4 directors and officers of the company received 1,5 million shares each as bonuses. In January three of the same people already received 2 million shares each once again as bonuses.
Any investment in CBIS should be preceded by extensive due diligence. On quite a few occasion the stock of the company has been pushed upwards by paid pumpers with the latest round of email touts coming just a few days ago. Furthermore, the 
Bogat Family Trust now has 57% voting control over the company. The Bogat Trust is owned by Mr. Raymond Dabney who has been accused by the SEC for stock manipulation twice in the past.
Bogat Family Trust now has 57% voting control over the company. The Bogat Trust is owned by Mr. Raymond Dabney who has been accused by the SEC for stock manipulation twice in the past. Yesterday the stock of Tranzbyte Corp. (OTCMKTS:ERBB) also jumped upwards by a little more than 10% and closed the day at $0.0342. The pumped stock of Green and Hill Industries, Inc (OTCMKTS:GHIL) didn’t have such luck and instead crashed hard by 20% and dropped down to $1.12 per share.
