Cannabis Science Inc. (OTCMKTS:CBIS) Reverses Direction
Cannabis Science Inc (OTCMKTS:CBIS) had been falling hard for four sessions in a row until yesterday, when it finally managed to regain ground with the help of some exposure.
Judging by the announcements on MeshPress, CBIS‘s recovery can be attributed to a pump by AwesomeStockTips. The exposure afforded the company by TheDenverChannel came too late to affect the stock’s chart movements, so whether it will have any bearing on today’s session or not remains to be seen. However, investors are advised to not hold their breath, waiting for said coverage to push CBIS up the charts. Why?
Because, at the end of the day, said coverage can hardly erase CBIS‘s shortcomings. And they are many and varied.
For starters, currently there is a “limited information” stamp on the company’s OTC Markets profile page. That’s right, the company is once more delinquent in its filings – so there’s no real way to know what is actually going on with it.
Some research reveals that there is little evidence to support the theory that CBIS did better during the second quarter of 2015 than it did during the first. And the company sure didn’t have a lot of positive things to report at the end of March 2015:
- Cash – $37 thousand
- Total current assets – $186 thousand
- Total liabilities – $3.8 million
- NO REVENUES!
- Net loss – $4.2 million
Add this to the fact that 250 million out of the 1.28 BILLION shares of CBIS common stock currently outstanding have been issued in 2015 alone, and the picture becomes quite grim indeed. The realization that the majority of said newly issued shares were issued as a result of conversions of toxic debt for as little as $0.001 per share, just makes matters worse.
In conclusion – CBIS may have bounced, but there is an abundance of evidence that suggests that this turn of fortune will be momentary.