Cannabis Science Inc. (OTCMKTS:CBIS) Takes Another Step Down
Cannabis Science Inc. (OTCMKTS:CBIS) once more arouse the investor’s suspicion by delaying its financial report for Q3 2014. When the report did finally hit the web, it immediately became obvious why CBIS was reluctant to file it.
Although said financial report certainly wasn’t the worst filing that could be found on the OTC Markets data base, it did not paint a pretty picture of CBIS‘s affairs and financial standing for investors:
- Cash – $443 thousand
- Total current assets – $782 thousand
- Total current liabilities – $4.1 million
- NO REVENUES
- Net Loss – $675 thousand
Naturally, investors were not impressed by these numbers – one look at the charts makes their displeasure clear enough. The ticker was headed down on increasing volume.
Nov. 19 saw CBIS manage to stir things up a bit, through the tried and proven tactic of PR promotion. All the company had to do was spew some optimistic statements and mention that cannabis may eventually have a use for treating disease such as HIV, cancer and Ebola and the ticker rose 4.48%.
Unfortunately for CBIS‘s supporters, the ascent didn’t last in spite of CBIS‘s further PR attempts. The company’s latest press release more or less repeated CBIS‘s newest 8-K fling, that announced that the company is to “purchase and license two northern California production farms with a combined total of 51 acres and related equipment for cannabis cultivation and new product development” from Apothecary Genetics Investments LLC.
The property is to be acquired for the “modest” price of 14,500,000 shares of CBIS restricted common stock and a funding of $150-300 thousand in working capital per calendar quarter starting “in the quarter ending December 31, 2014”.
Investors were obviously not convinced by the effort, and as a result yesterday CBIS lost another 5.22% of its market value and is now stuck at $0.0635.
