Cannabis Science, Inc. (OTCMKTS:CBIS) Slowly Slides Down
At the start of the year the stock of Cannabis Science, Inc. (OTCMKTS:CBIS) was among the ones that benefited the most from the widespread marijuana hype. Jumping from around 3 cents at the end of December CBIS found itself touching on 30 cents just a little more than a month later. The problem is that many of the so-called potstocks are solely reliant on the hype in order to sustain their inflated prices.
CBIS is no different and for the past three weeks has been slowly but surely dropping down the chart. Although the drop cannot be compared to the harsh corrections that took place in early February the consistency of the negative trend is far more worrying. It seems that investors are getting tired of the numerous fluff PRs which by now are completely unable to impact the share price.
Even Friday’s announcement which was released a couple of hours after the start of the session remained largely unnoticed and CBIS slashed another 5% off of its value on the very same day. And the PR this time was rather important revealing that the $1 million private placement of shares has been completed. Usually the issuance of new shares is not something to make investors happy but CBIS is in a desperate need of new funds.
According to the latest quarterly report at the end of September 30, 2013 the company had:
- $462 cash
- $288 thousand total current assets
- $3.5 million total current liabilities
- $70 thousand revenues
- $1.1 million net loss
Well, we don’t know if $1 million will be enough to keep the company afloat but at least they will have some cash reserves. CBIS should file its annual report by the end of the month so when that happens we will see what their current financial state is.
It is important to remember that initially CBIS attracted attention through its patent application that covers the development of cannabinoid-based drugs treating a variety of neurobehavioral disorders. The PR for the patent is dated November 15 and since then any updates on it have curiously been missing from the official statements made by CBIS.
Investors should interpret it for themselve but the fact remains that some members of the management team of the company have sold quite a few of their own shares these past two months. It is doubtfult that this is helping build confidence in the stock.
In early trading today the stock plummeted downwards right from the start then tried to recover but it is still close to 6% in the red at $0.142. For now Growlife, Inc. (OTCBB:PHOT) remains one of the very few marijuana pennystocks that are still reaching for higher stock prices. At the moment they have are up by another 7% trading for $0.44 per share.
