Cannabis Science, Inc. (OTCMKTS:CBIS) Spikes Then Turns Pink
Cannabis Science, Inc. (OTCMKTS:CBIS) had a rough couple of sessions lately, after the market crash that took the whole sector down last week. It started recovering just yesterday, but had a good run that took it no less than 26% the charts up in the span of a single session. Unfortunately for its supporters, this state of developments is likely to change soon, now that the bad news has hit the web.
CBIS is a company that, like HEMP, INC.(OTCMKTS:HEMP) and a few others, waited for the last possible moment for the filing of its annual report that was due on March 31, and then filed a notification of late filing instead. However, unlike HEMP, CBIS failed to deliver the report even though its term was extended by 15 whole days. As a direct result, earlier today it was demoted from its comfortable position in the QB tier to PINK:Limited information.
It bears repeating, that this specific tier of the OTC is “Designed for companies with financial reporting problems, economic distress, or in bankruptcy”. With that in mind, it should be obvious how CBIS‘s demotion to it could prove disastrous for the company’s market standing. This unfortunate turn of events may well cost CBIS the support that’s currently pushing it upward.
Diligent investors should not have had any room doubt when it comes to CBIS‘s financial and commercial integrity in the first place. Numerous red flags crop up if one does any research on the company’s affairs. CBIS‘s tendency towards hype-generating stunts, its poor financials and overall – lack of commercial success is indicative of the company’s ineffectuality.
Moreover, even the most superficial due diligence reveals the fact that company insiders have sold approximately 11 MILLION shares since the beginning of 2014! These facts should have been more than enough for investors to draw their own conclusions.
Perhaps now that the company has changed its colors it will be easier for investors to see it for what it really is – an extremely high risk stock at best.