Cannabis Science Inc (OTCMKTS:CBIS) Slashes More Of Its Gains
For the past four sessions the stock of Cannabis Science Inc (OTCMKTS:CBIS) has been going nowhere but down. Yesterday it dropped by another 8.6% and closed at $0.0265. For now at least the ticker is still holding on to a significant portion of the gains it made during the August 18 and 19 sessions. For how much longer though?
The August 18 PR really got investors excited by announcing several encouraging things one of which was the company’s intention to finally, after four years of waiting, distribute the promised dividend to shareholders as of the record date of December 31, 2010. No matter what the company promises for the future the current state of CBIS is extremely depressing and the positive momentum disappeared completely after just two days.
Currently the company’s OTCMarkets profile page is marked with the OTC PINK limited information sign due to the still missing financial report for the second quarter of the year. The report was supposed to be filed by the middle of the month but CBIS received a 5-day extension through a notification of late filing. Well, that period ended on August 22 and as we said even now there is still no trace of the report. This turn of events shouldn’t have come as a surprise, after all the quarterly covering the first three months of 2015 was filed with a delay of over two months.
In addition the company is still trading at over-inflated prices that simply cannot be justified by their financials. 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
The company finished 2014 with $1031 in revenues and a net loss of $16.8 million. But let’s move on to the continued dilution – for the first seven months of the year 250 million shares have seen saw the light of day. This brought the O/S count to 1.28 BILLION as of July 27. A significant portion of the newly issued shares came into existence as a settlement of debt at $0.001.
If this wasn’t enough you can check our past articles about the multiple equity compensation plans approved in 2015, a new Equity Award plan was registered on August 18, and the millions of shares that the directors of the company have received as bonuses.
Even if the stock bounces without showing some concrete results CBIS will remain an extremely dangerous choice. Any trades involving the ticker must be preceded by extensive research.
