Yesterday the stock of Cannabis Science, Inc. (OTCMKTS:CBIS) accelerated its descent and after tanking by another 11% found itself at $0.087 per share. The company has been slowly but surely going down the charts with any positive sessions being few and far between.
And there certainly is no shortage of reasons for investors to stay away from the company. CBIS
are quite fond of issuing numerous PRs that contain little to no material information about their operations. Well, that is if the PR actually has something to do with the company at all which they often don’t. For example the press release from Monday talked about Dr. Sanjay Gupta’s recent activities in the medical marijuana and cannabis sector.
Although the attempt to create artificial hype through meaningless announcements is a cause for concern it is almost negligible compared to the massive red flags found in the annual report for 2013 filed just last week. According to it CBIS
finished the year in an extremely dire state:
- $943 cash
- $302 thousand total current assets
- $4 million total liabilities
- $82 thousand revenues
- $5.9 million net loss
Around 225 thousand of the current assets of the company actually consist of shares of another public company – Endocan Corporation (OTCMKTS:ENDO
) that currently bears the Pink Limited Information mark on their OTCMarkets profile. The liabilities of the company are in no better shape with the sums owed under notes payable amounting to more than $2.1 million compared to $1.3 million at the end of 2012. As a whole CBIS
have accumulated the massive deficit of $92 million and it is more than likely that this number is only going to get bigger.
Despite the depressing performance of the company a lot of its insiders have received some rather substantial amounts of shares as bonuses. In our previous article we warned our readers that since the start of 2014 insiders have sold more than 11 million shares and now they have registered another 6.5 million as stock compensation plan.
insiders are far from the only ones getting cheap shares though and just for the month of January close to 30 million shares were issued at just $0.001 with another 5.5 million priced at $0.0312. As a result of all the dilution the number of outstanding shares has reached 834 million out of the 850 million authorized.
Early in the morning today CBIS
came out with another PR, this time announcing a joint observational study in the Netherlands. We will see if this is enough to slow the decline of the stock but with no products even close to being ready, mounting debt and the substantial dilution investors have all the reasons to be skeptical. At the moment CBIS
is 2% in the red at $0.86.
Yesterday the stock of Minerco Resources Inc (OTCMKTS:MINE
) had a disastrous session as a result of the conference call that was held during the day. MINE
crashed by more than 30% and dropped down to $0.25. In early trading today they are sitting another 10% lower at $0.22.