Cannabis Science, Inc. (OTCMKTS:CBIS) Spikes On Pump
Cannabis Science, Inc. (OTCMKTS:CBIS) were finally able to recover at least a bit during yesterday’s trading. The stock of the company surged upwards and at the end of the day was sitting more than 11% in the green returning to $0.79 per share. Unfortunately the positive movement was facilitated through yet another fluff PR and quite a few email touts.
The first round of email alerts was sent after the end of Wednesday’s session with another wave issued on the next morning. Most of the touts came from the affiliates of Primary Investments -Moving Pennies, OtcProfessor and Prime Time Stocks for the rather low compensation of $4000. The short promotion may have helped CBIS for a day but now the promoters are moving on to their next target leaving the stock on its own.
Prior to the pump CBIS had logged in only 4 sessions ending with gains since the start of the month. Even at the current price the stock is still more than 70% down from its February highs when it reached 30 cents.
In addition to all the other red flags around them now CBIS have also been marked with the OTC Pink Limited information sign on their OTCMarkets profile due to their inability to file the financial report for the first quarter of 2014. CBIS were supposed to file the report before May 15 but instead they submitted a notification of late filing which gave them a 5-day extension. Well, that period ended on May 21 and now, two days later, there is still no sign of the quarterly.
Having more up-to-date information about the company is rather important when on April 21 CBIS were sitting at 834 million outstanding shares out of the 850 million authorized. A possible increase of the authorized amount is more than likely when at the start of the year their other financials were in a rather depressing state:
• $943 cash
• $302 thousand total current assets
• $4 million total liabilities
• $82 thousand revenues
• $5.9 million net loss
• $302 thousand total current assets
• $4 million total liabilities
• $82 thousand revenues
• $5.9 million net loss
As we already informed you in our previous articles the poor performance of the company did not stop its management from registering another 6.5 million shares as stock compensation plan.
CBIS seems unable to break from its prolonged negative trend. The continued dilution coupled with the overwhelming amount of debt demand the use of caution when dealing with the stock.