Cannabis Science Inc (OTCMKTS:CBIS) Logs Another Correction
Despite the new PR that was issued by Cannabis Science Inc (OTCMKTS:CBIS) yesterday the stock of the company continued to decline and registered its fourth session in a row of losses. When the closing bell put an end to the trading day the ticker was sitting at $0.0145 for a loss of 6.45%. It seems that investors weren’t that thrilled to learn that over 3000 shareholders have requested to receive a “loyalty gift” of shares from CBIS‘ CEO Raymond C. Dabney.
The high number of requests shouldn’t be that surprising – after all some investors may have spent years waiting for the dividend that had a record date of December 31, 2010, to be distributed just to learn that not only will there be no such dividend but that FINRA had also refused to approve the second dividend that was proposed by the company. Not to mention that CBIS has still not released in an official PR any information about just how many shares are going to be distributed as gifts and at what ratio.
Well, that is not the only vital information that is missing – investors are also waiting for the annual report for 2015 to be submitted. In the notification of late filing CBIS stated that they couldn’t to complete the report on time because of “unanticipated delays”. Due to the company missing even the extended deadline its OTCMarkets profile page has been stamped with the Pink Limited Information sign.
Without any way to get more up-to-date information about the financials of the company investors are left to rely on the results from the quarterly report for the period ended September 30, 2015:
• $4791 cash
• $138 thousand total current assets
• $5.1 million total current liabilities
• $4150 revenue
• $3.9 million net loss
We will leave it up to you to decide whether this balance sheet can justify the current market cap of company of over $18 million.
By the end of the week CBIS are supposed to file another PR, in which the schematics for the 360,000 sq. ft. drug development complex in Nevada should be revealed. It remains to be seen if this will be enough to offset the rest of the red flags surrounding the company.
