Carbon Sciences, Inc. (OTCMKTS:CABN) Claws Its Way out of Double Zeroes
Driven by a very optimistic press release pushed out in the small hours on Monday, Carbon Sciences, Inc. (OTCMKTS:CABN) soared 125% up in yesterday’s session. The ticker dug itself out of the middle of double zeroes land and closed at $0.013. Intra-day volatility was massive, with the price spiking as high as $0.023 in the morning hours, then cooling back down.
CABN management seems to have been too excited to sleep, publishing the PR in question around 3 AM in the morning. The company announced that the CABN-funded project conducted at the University of California, Santa Barbara (USCB) to produce high quality graphene has “successfully demonstrated” a low-cost version of the chemical vapor disposition (CVD) production process – the industry’s most popular method of producing graphene monolayers.
The PR further states that a new CVD system has been developed, using unique “processes, catalysts and techniques”. The joint project with USCB originated in mid-2014. Prior to that, CABN was focused on converting natural gas into liquid fuel. The company entered a sponsored research agreement with the university, under which CABN will pay $387 thousand.
The company’s latest financial report is an annual for 2014 and contains the following:
- $15 thousand in cash
- $10.6 million in current liabilities
- ZERO revenues since inception
- $7.7 million in annual net loss
The company states that it has “no real operating history”, which investors can use to evaluate CABN‘s future possibilities. There is also the matter with the company’s shares. In December 2012 there were 11.5 million common shares outstanding. That figure ballooned to 72.1 million shares by December 2013. This unchecked dilution continued in 2014. By December 2014 CABN was sitting on 241.1 million outstanding common shares. Considering the company’s severe shortage of cash, it’s difficult to imagine how this dilutive streak will be cut short in the current year.
Traders may also want to keep in mind CABN‘s intra-day movement and the fact that the stock closed about 40% below its intra-day high yesterday.
