Cannabis Science, Inc. (OTCMKTS:CBIS) – Unable To Stop Its Slide
The stock of Cannabis Science, Inc. (OTCMKTS:CBIS) has fallen on hard times. Although the general hype around the marijuana industry is enabling the company to keep most of its gains CBIS is slowly but surely sliding towards the bottom. For the month of March CBIS managed to close in the green only 8 times and April is starting of even worse.
On Friday the stock accelerated its drop and wiped close to 10% of its price closing the week at $0.141. More important though were the 32 million shares, nearly 5 times higher than the volume from the previous session, that got dumped on the market. The reason for the significant increase in sells was more than likely the extremely negative SeekingAlpha article that was published that day.
Although most of the information used was from the latest quarterly report of the company the numbers in it are so dismal that they speak volumes even by themselves:
- $462 cash
- $585 thousand total assets
- $3.5 million total liabilities
- $70 thousand revenue
- $1.1 million net loss
Accumulated deficit for the company has reached the massive $90 million while the net loss for the nine months covered by the report was close to $4 million. Unfortunately CBIS failed to submit its annual report in the required time and instead filed a notification of late filing which gave them another 15 days to do so. We can’t be certain but it is highly unlikely that the new report will show any significant progress.
The past couple of months CBIS has been predominantly focused on releasing a myriad of fluff PR articles about anything even remotely connected to the medical marijuana industry. The last PR that gave any valuable information about their operations is nearly a month old and it announced that CBIS received $1 million thanks to its private placement of shares. Well, after taking another look at their financials this $1 million seems rather insufficient.
Not to mention that at November 18 CBIS had already burned through 761 million out of its 850 million authorized shares. We will have to wait for the annual report to see how much freshly issued shares have seen the light of day in the past 4 months.
At the same time the two marijuana drugs that were the source of the initial hype around the company have not even been mentioned recently and according to the official site of the company are still in pre-clinical investigation.
At the same time the two marijuana drugs that were the source of the initial hype around the company have not even been mentioned recently and according to the official site of the company are still in pre-clinical investigation. 