Cannabis Science, Inc. (OTCMKTS:CBIS) Tanks With No Report
Cannabis Science, Inc. (OTCMKTS:CBIS) looked promising before the latest marijuana crash tossed it to the bottom of the charts. Now, it’s plummeting and gathering downward momentum, fast – yesterday alone cost it 16.35% of its market value.
The suspension of Growlife Inc. (OTCBB:PHOT) is undoubtedly the decisive factor that shaped the last few trading sessions on the pot-stock market. The simple fact that such drastic measures were taken against one of the most notable marijuana-related companies had immediate and lasting sector-wide repercussions. The crash took literally every ticker on the market down significantly, and some, like HEMP, have had a hard time recovering from the ordeal.
In this particular case, that’s no surprise. Currently, HEMP is a prime example of how procrastination can do more harm than good. The company adopted the tactic used by numerous other dubious marijuana companies recently, and postponed the filing of its financials. Perhaps the company’s management hoped that it can reap the benefits of a high market value for a while longer, before the absolute deadline for the filing. However, as a result of the delay, HEMP had nothing to keep it afloat when the mass panic hit.
What is interesting is the fact that, until now, the company didn’t even try to halt its descent through PR, as is common practice in the marijuana branch. The first bit of relevant news on CBIS in more than 10 days hit the wire just minutes ago with an announcement that CBIS‘s president had joined the Advisory Board of Mountain High Acquisitions Corp. (OTCQB: MYHI).
The president of MYHI drowned the readers in a torrent of praise for Dr. Robert Melamede. That should have convinced investors not to withdraw their support, shouldn’t it have? The fact that other QB tier companies are eager to get Dr. Melamede on their team is indicative of the high capabilities and authority of the man in charge of CBIS, right?
Wrong. Although MYHI is a “fully reporting” QB company, MYHI has an asset total of $1.5 thousand, no revenues to date and a quarterly net loss of $74 thousand. Little else is needed to discern what this particular company, and by extent – its praise, is worth.
Another fact of relevance is HEMP’s missing of the deadline it had set for filing its much anticipated 10-K for 2013. The company’s annual report for 2013 was due yesterday, but didn’t come out. This fact in and of itself should be a clear enough warning for investors.
