Cannabis Science, Inc. (OTCMKTS:CBIS) Dips Before The Storm
Cannabis Science, Inc. (OTCMKTS:CBIS) started yesterday’s trading with a noticeable gap up, but ended up falling 8.27% before the session’s final bell.
Surprisingly enough, more than a few OTC Markets marijuana penny stocks took a noticeable step back yesterday. Hemp Inc. (OTCMKTS:HEMP), GreenGro Technologies, Inc. (OTCMKTS:GRNH) and Terra Tech Corp. (OTCMKTS:TRTC), who are some of the most well-liked companies in the branch all ended up in the red, in spite of the general excitement surrounding the midterm elections.
In light of the results of said elections, however, it is highly likely that this state of developments is about to change abruptly today. If the rush that followed the legalization in Colorado a few months back is any indication, the whole pot-stock sector may be in for a few volatile sessions in the near future.
Still, that shouldn’t be a reason for investors to skip on the due diligence, which in CBIS‘s case shows some pretty worrying numbers. Even a superficial glance at the company’s figures reveals the fact that CBIS‘s financial state is unimpressive to say the least. in its latest quarterly report, the company stated that it has a net loss of $1.5 million and $4.2 million in current liabilities – and CBIS hasn’t even left the development stage yet! It has horrible financials and an even more horrible share structure, with 846 million shares currently outstanding, and more dilution incoming all the time.
In conclusion let the buyer beware.