Investors Are Not Excited About Cannabis Science Inc (OTCMKTS:CBIS)

On November 30 Cannabis Science Inc (OTCMKTS:CBIS) announced that they have launched a cannabinoid-formulated capsule product line. The initial capsule formulations are going to be CBD, Indica, and Staiva. With such a major news announced by a pennystock company what do you think the reaction from the market would be?

You might think of a couple of scenarios but total apathy from investors would likely not be one of them. That is right, on the day of the PR CBIS closed flat at $0.02 per share on 5.8 million traded shares. It speaks volumes when on the very next day the stock suffered a 5% correction and closed at $0.019 on double the amount of traded shares.

Why aren’t investors even slightly excited? Well, CBIS has been talking about launching new products from as early as January this year. And as history has repeatedly proven taking what the company puts in its PRs with a grain of salt is not such a bad decision.

Let’s start with the dividends that investors are still expecting. On October 28 CBIS stated that on October 30 it would announce “the actual process for its shareholders to receive their dividend shares”. Not only did it fail to do so but now, over a month later, investors are still waiting for the information. According to the November 30 PR CBIS had to submit additional documentation that was requested by FINRA which caused the delay. Keep in mind that one of the dividends that are going to be distributed was first registered more than 4 year ago.

But let’s move on to what the company said on November 11. In that press release CBIS stated that a “full-featured, finished website” for its cannabinoid-infused animal care products is scheduled to launch on December 1. There is no sign of the website at the moment.

Now add to picture the abysmal financial state of the company – at the end of September CBIS had:

• $4791 cash
• $138 thousand total current assets
• $5.1 million total current liabilities
• $4150 revenue
• $3.9 million net loss

This is not the end of the red flags. The outstanding shares of the company have been constantly diluted and currently there are 1.4 BILLION outstanding shares out of the 3 BILLION authorized.

The risks around CBIS are extremely serious. It is paramount to do your own due diligence before committing to any trades involving the stock of the company.