Cannabis Sativa Inc (OTCMKTS:CBDS) Crashes To New 52-week Lows
Yesterday Cannabis Sativa Inc (OTCMKTS:CBDS) lost whatever support it still had and crashed hard plunging towards the bottom of the chart. The stock actually opened at $1.41 per share, above its previous close, but by the time of the closing bell it had wiped more than 27% of its value closing at exactly $1. During the session CBDS registered a new 52-week low of $0.95. It should be noted that yesterday’s drop took place on a record for the past year volume of 271 thousand traded shares.
On Monday the stock surged by 30% on the back of a new PR but the positive momentum disappeared almost immediately. Initially investors were excited about the new special dividend of 1.5 shares for every share of the company owned as of the record date of November 16 but the new shares are going to be restricted for 6 months since issuance. CBDS also announced that they have submitted an application for an uplisting to the NASDAQ exchange but this too quickly lost its appeal. Especially when the latest financial results report by the company are simply abysmal – the quarterly for the period ended June 30 contained the following numbers:
• $26 thousand cash
• $3.6 million total current assets
• $1 million total current liabilities
• $617 revenues !!!
• $1.98 million net loss
So, a little over four months ago CBDS had cash reserves that it expected to last for only two weeks, almost non-existent revenues and quarterly losses of nearly $2 million. For the first half of 2015 the company generated $1719 in revenues which is comparable to the $1672 reported for the same period last year. The same cannot be said about the net loss though – from $178 thousand it now stands at more than $3.7 million.
CBDS tried to raise $300 thousand through a convertible note back in June and the proceeds would have definitely helped. Last month, however, an 8-K form announced that “the Lender repudiated the terms and conditions of the debenture and otherwise did not accept it”.
Without new PRs to keep the excitement going CBDS may continue to correct. It is paramount to do your own research before committing to any trades.