Cannabis Science Inc (PINK:CBIS) Continuing to Fall After Annual Report
Medical marijuana companies are sprouting all over the place. Cannabis Science Inc (PINK:CBIS) a pharmaceutical company that was incorporated in 1998 is looking to find its place in this seemingly growing sector.
The stock prices of CBIS are continuing to go down as more and more people look closely at the company and decide to drop out. The price level of $0.051 marks the 50% drop their stock price experienced in the past two and a half months from the peak of $0.1 in the beginning of February.
This can be attributed to several things, which we will cover in this article, but first lets take a look at the financial numbers from their last annual report that was filed today.
cash: $23 thousand
total current liabilities: $3.2 million
revenue: $36 thousand
net loss: $16 million
Well, that doesn’t look good, does it? The fact is that CBIS has a long history that shows it is unprofitable and the worst thing is that the debt and losses are increasing each year. In fact as stated before the company has been operational for over 10 years. The name that it was first incorporated with was National Healthcare Technology Inc, however, they decided to try and wash the muddy financial past of the company by taking a new name and going in a seemingly profitable path.
There are simply too many supporters of marijuana that have raised their voice and the echo is being heard all over the U.S. However, one hurdle still remains, which is the fact that federal law hasn’t yet come to terms with the states that have legalized marijuana for medical or recreational use.
In other words CBIS with all its bad financials might not even be given the chance (given that they wants to) to try and become profitable even though its based in Colorado where marijuana use is permitted. This is due to the fact that if the federal law decides to take action they can do it and no one can stop them.
As the company renamed itself and decided to take the path of marijuana-based drugs in 2009 a question must be asked. Since all of their programs are in pre-clinical investigation stage, what the hell have they been doing in the past 4 years?
Seeing the financial state of the company and the actual current situation with medical marijuana CBIS‘s stock seems to be a rather risky one. Be sure to do your research and weigh out all the factors before you make the decision to invest in CBIS.
