Cannabiz Mobile, Inc. (OTCMKTS:LGBI) Blows Its Top for No Reason

Yesterday the share price of Cannabiz Mobile, Inc. (OTCMKTS:LGBI) went completely crazy. The stock soared out of triple-zero land and managed to close 71% up on its heaviest share volume for the past month. The reason for this move? Sadly, there appears to be none at all.

There have been no new press releases from LGBI since March 25, when the company announced a weird digital widget dubbed the “canna bizcard”. The company’s latest filing was published a month ago and it was its overdue annual 2014 report, which contained some hair-raising numbers:

• $8 in cash (eight US dollars)
• $559 thousand in total liabilities
• ZERO in annual revenues for 2014, 2013 and 2012
• $122 thousand in net loss

Those dumbfounding numbers are backed up by dilution to match. In September 2014, LGBI was sitting on 34 million outstanding shares. By December that number was 54 million, out of 250 million authorized. Currently, the company’s OTC Markets profile page states that LBGI has 395 MILLION outstanding shares, and the authorized shares figure is up at 750 million.

This would essentially mean that LGBI diluted its common stock by 2100% within the space of six months.

All of the above is obviously no problem for the people who are actively trading the stock and are shuffling hundreds of millions of shares around. Traders on discussion boards are tossing about general marijuana-related news that have little to no connection with LGBI‘s business plan and are riling each other up over it.

There are, of course, people who love to play the many flips the stock charted over the past few months but considering the red flags, extreme caution is advisable.