Cannabis Science Inc (fka CBIS)

[Smokin Moose]

It's a slippery slope eh.

Cannabis Science Inc (OTCMKTS:CBIS) Sliding Down

Yesterday Cannabis Science Inc (OTCMKTS:CBIS, CBIS message board) opened with a gap down they couldn't overcome and dropped by almost 4% on 2.9 million shares.

On June 04 CBIS filed their latest quarterly report, which was handed in half a month later than expected. The long awaited 10-Q for the quarter ended March 31, lists:

cash: $866 thousand
current assets: $1.4 million
current liabilities: $4.1 million
revenue: $1031
net loss: $5.8 million

The cash supplies are certainly larger than what a lot of OTC companies have, but they're still not large enough to cover their expenses for the quarter, and their revenue is pitiful. They attribute the net loss to settlements of debt and anticipate their revenue would be “limited” in the near future. The whole report was somewhat disappointing.

The company's latest press release is from July 18, and it announces CBIS's CFO's inclusion in a Wall Street Journal commentary piece about the marijuana industry. This PR was probably the reason behind Friday's slight increase in price.

In another press release from June 02, CBIS announced that one of the company's co-founders will be leaving the company due to health issues. Before leaving, he sold his 500 thousand preferred series A shares to the Bogat Family Trust. Raymond C. Dabney is the owner of The Bogat Trust, and after the purchase, he now has 57% voting control over CBIS.

An issue we have already mentioned in our previous articles is the fact that the company is very close to reaching its limit for authorized shares. As of June 02, there are 844 million outstanding shares out of 850 million authorized. An increase of the A/S amount hasn't been mentioned in the 10-Q, but it is a logical assumption.

When you look through CBIS's filings on their OTC company profile, you discover a lot of Form 4s, which let us know that since the beginning of 2014, insiders have sold more than 11 million shares.

All of these issues should be considered before making an investment in CBIS.

Source: http://www.hotstocked.com/article/87654/cannabis-science-inc-otcmkts-cbis-sliding-down.html