Cannabis Science Inc (OTCMKTS:CBIS) Finally Bounces
Last Wednesday Cannabis Science Inc (OTCMKTS:CBIS) announced that on Friday they are going to reveal the actual process for its shareholders to receive the promised dividends. Back in August the company officially announced that it is going to issue both the dividend registered way back in 2011 and a new dividend with a record date of October 9.
Well, Friday came but instead of more details about the dividend CBIS stated that they will need to wait for FINRA’s approval, which should take about a week, and only after that they will “advise shareholders on the next steps required in order to obtain their dividend shares”. In the PR CBIS talked about new product launches in California that according ot the company could take place as early as this week. It seems that this was enough to finally push their stock in the right direction.
For the past three weeks CBIS‘s chart performance was simply atrocious with the company having real difficulties logging in any positive sessions. The prolonged downtrend saw their stock slide from over $0.03 to less than $0.02 last Thursday. Friday’s PR helped CBIS to recover nearly 18% of its value with the stock closing at $0.023. Will this be the start of a more pronounced uptrend?
If CBIS really manage to launch any products soon a climb back up the chart is definitely possible. The problem is that the company has been talking about new products from as early as January but so far they have not delivered on their promises. As a result the financial state of CBIS has deteriorated so much that as of June 30 they had:
• $2,504 cash
• $177 thousand total current assets
• $4.2 million total current liabilities
• ZERO revenues
• $6.1 million net loss
That is right, a little over 4 months ago the company had cash reserves of $2,500, a working capital deficit of over $4 million and an accumulated deficit of close to $120 million. For the first half of 2015 CBIS reported no revenues while for the entire 2014 they generated revenue of $1031.
At the same time as we have been warning you in our articles insiders of the company have been continuously awarded with shares under the various stock compensation plans approved by CBIS. The Schedule 14C filing submitted on October 19 revealed that between January 1 and April 30 163 million shares have been approved for issuance by the Compensation Committee of the company with the former CEO, the current CEO, the COO, and the CFO being among the recipients.
The red flags surrounding CBIS are extremely dangerous and basing your decisions solely on hype may not be wise. Take the necessary time to do your own due diligence before putting any money on the line.
