Cannabis Science Inc (OTCMKTS:CBIS) Sinks Further Down The Chart

Cannabis Science Inc (OTCMKTS:CBIS) seems to be unable to stop its stock from crashing further and further down the chart. Yesterday the ticker once again registered new 52-week lows when it plunged to $0.0127. Although the stock closed a bit higher at $0.0135 it was still facing a loss of 6.9%. The last time the company traded at lower price ranges was way back at the start of 2012.

The depressing performance has its explanation though – CBIS is simply riddled with red flags. Let’s start with the fact that the company needed nearly three extra months to complete its financial report for the first quarter of the year. Instead of filing it on time by the middle of May CBIS finally submitted the report on July 28, just weeks before they have to file the report for the second quarter. The delay, however, was quickly overshadowed by the horrific numbers found inside the quarterly – at the end of March CBIS had:

• $37,524 cash
• $186 thousand total current assets
• $3.8 million total liabilities
• ZERO revenues
• $4.2 million net loss

In our articles we have been warning you for quite some time that despite the clearly atrocious results of its operations CBIS has been issuing millions upon millions of shares as bonuses to its officers and directors. Well, on May 4 another 52,948,000 common shares were given to executives and various consultants of the company. Investors should also note that 71 million shares were issued as a settlement of debt at just $0.001 each. As a result of the issuances CBIS had 1.28 BILLION outstanding shares as of July 27.

So, in short, CBIS had a working capital deficit of $3.6 million and absolutely no revenues, the dilution is still ongoing, and even with the help of a paid pump the stock failed to move in the right direction. Ultimately it is up to you to decide if this sounds like a good choice for investment.