Cannabis Science Inc (OTCMKTS:CBIS) Reaches New Record Lows
Cannabis Science Inc (OTCMKTS:CBIS) continues to disappoint with its chart performance. In early 2014 the stock spiked to a high of around 30 cents but began falling down immediately after that. In 2015 the company has been dropping straight for the bottom of the chart. Yesterday CIBS accelerated its decline and crashed by over 11% to a close at $0.0144. The number of shares dumped on the market during the session surpassed the 30-day average for the company of 2.98 million by nearly 4 times.
If you are wondering what could possibly explain the disastrous performance of CBIS you have to look no further than the financial reports of the company. Instead of submitting its quarterly report for the first three months of the year on time on May 18 CBIS filed a notification of late filing. This gave them a 5-day extension to complete the report but apparently the company still failed to do so. By the end of May there was no sign of the quarterly and at the end of June was the same. Finally, just a couple fo days ago, on July 28, CBIS filed the report and it is as horrible as ever:
• $37,524 cash
• $186 thousand total current assets
• $3.8 million total liabilities
• ZERO revenues
• $4.2 million net loss
At the end of the first quarter of 2015 CBIS had a working capital deficit of over $3.6 million and an accumulated deficit of $113 million. If you think that the depressing financials are the only red flag around the company though you are sadly mistaken.
Long-term shareholders have also been put through a crushing dilution of the common stock. Between December 31, 2014, and July 28, 2015, more than 250 million shares have seen the light of day and as a result now CBIS have close to 1.3 BILLION outstanding shares. Approximately 71 million of the shares were issued as a settlement of debt at just $0.001 each. Another 52,948,000 common shares were given to executives and various consultants. Despite the horrific results of the company’s operations just for the three months ending March 31 CBIS incurred $458,769 in related party management fees and stock-based compensation. In our previous articles we already detailed the massive amount of shares that is being issued to the officers and directors of the company as bonuses.
CBIS is one the most dangerous stocks out there. It is paramount to do your own due diligence before attempting any trades involving the ticker. Not to mention that the next financial report is supposed to be filed by the middle of the month but if the past history of the company is any indication this seems rather unlikely.
