CannaBusiness Group, Inc. (OTCMKTS:CBGI) Sinking, Weighed Down by Suspension News
CannaBusiness Group, Inc. (OTCMKTS:CBGI) seems unable to recover, as it continued the trend, logging mostly net daily losses in the past day. CBGI was lowered by another 11% to $0.116, as selling came in a bit faster, at volumes of $1.06 million. 
Strangely, CBGI is dropping despite the active, timely updates on its activities in the marijuana sector. It seems the market has had enough of news, and we already pointed out that the general mood is subdued, if not pessimistic. In the last week, CBGI showed that Northern California Connection would be moving its warehouses and offices- we don’t know if this would improve anything, but at least it shows the company is active. 
In addition, CBGI acquired ownership in National Security Solutions, Inc., a loud-sounding new subsidiary. CBGI immediately posted a new PR that National Security retained Stuart Volkow as the Chief Technology Officer. This is still another event that cannot prove its material value immediately, but at least CBGI has not left the stock to roll on its own, completely.
True, the website of Nor Cal Connection is already functioning and is offering a wide range of products, but with this CBGI is not quite unique in a market that is already savvy about its supplies. Still, for the Canadian company this may be a reasonable source of revenues, where smaller OTC companies are yet to turn their ideas into sales. We only have to hope that CBGI will have enough strength to survive at the head of a security business and a marijuana project. The financial filings reveal:
- cash: $17 thousand
- current assets: $1 million
- current liabilities: $3 million
- revenues: $1 million
- net loss: $816 thousand
Investors’ forums take note that most cannabis tickers took a beating last week, but in the case of CBGI, there are expectations to revisit the $0.20 levels, though perhaps not immediately the peak prices. The comments are also concerned with the drop in prices which is catching like wildfire, and which followed the suspended trading of two tickers in the past week.
Among those hit by the blight were not only the bellwether Growlife, Inc. (OTCBB:PHOT), but also Aventura Equities, Inc. (OTCMKTS:AVNE), Citadel EFT, Inc. (OTCMKTS:CDFT) and heavyweight Advanced Cannabis Solutions, Inc. (OTCMKTS:CANN). The immediate result of the suspension is a large drop in price as soon as trading resumes- which has not yet happened only for PHOT.
But in the longer term, this may create tension and a lack of trust in the market. The SEC is citing protective intentions for the rule to suspend, which was previously reserved for heavily promoted tickers. Now, the rule has spread to the new version of promotions, where previously unknown OTC companies boost trading and prices by affiliating themselves with the MMJ boom.
If you are still looking for a portfolio of legal cannabis stocks, be aware that at peak prices and activity, a natural drop is not the only threat- now, there is also the added potential for suspended trading. Avoid over-investing in what looks like a bubble industry.
