My 2 cents on this CBDS...
BSspotter very well said! Madhatter, please post that company update about the product being released in 30 - 60 days :) I've asked Jerry, still waiting? That Jerry is a problem in itself...
1) Gov Johnson, Sen Gravel (both ex presidential candidates & directors on other boards), directors who are ex supreme court justice, ex police chief, Steve Kubby with 30 years of "international" contacts, knowledge, applied for patents & trade secrets (which are Kush owned). Sounds good to me...
2) Sec filings are current - no revenue as of 1st quarter 2015 with debt mounting, OTCQB approved, 16 mil outstanding, 2-3 mil float, authorized up to 45 mil, one of the smallest of all cannabis stocks, again, sounds decent for a startup
3) Wall Street Journal, USA Today, in Forbes top 8 cannabis stocks... nice press from reputable news groups... sounding real good!
4) On 3-3-15 they announce "that by spring, they will provide online & in retail stores an extraordinary CBD capsule, ISO 9000 processed that can be bought & used by all ages in all 50 states"! SOUNDS AWESOME :) 18 days later when spring started, we heard nothing? 4 months later still not 1 word on it?
5) Since then with nothing happening, no news & no product delivered, the stock has been devastated by the shortys. April to even now it is bad. From May 1 to May 15 the short interest increased 244%? They have shorted at 40% - 60%+ levels on very little volume day after day and have been able to cover in 1 day? They have done this for 3+ months! How nauseating that sounds, those are facts! The naked short you can get from Sec, look at those not called in shares? Began around Jan 2015?
6) None of their websites are updated since Oct 2014? Copyrights dated 2014? I was told about 2 months ago when I asked "Jerry" about the unprofessional outdated sites that won't lure new investors, he said "they had been working on a whole new suite of sites and to expect them VERY soon". Again, that was 2 months ago? This Bristol Media being their "Investor Relations", they need to do a lot better!
Lets look where we are today... no revenue, no product, no investor communication, internet appearance outdated 9 months ago, stock price declining 70% in 90 days with new 52 week lows very recent due to OTC SEC short neglect and BOOM out of nowhere a spinoff of their #1 subsidiary?
Is your head spinning yet? Welcome to a very high risk, currently federally illegal cannabis industry on the OTC. In their defense.
MY DD in regards to this spinoff, past SEC filings & this news press. I am thinking this is actually a very good thing for all. Kush & Kubby and Gravel is technical & scientific divisions. Johnson & Hi Brand Intl are consumer product Hi Brand orientated. I believe TimeBrigg was correct when saying CBDS just took 3 mil off the books, as well as 1 mil in assets, kept all rights as before with Kush (CBDS will still control majority ownership of Kush Patents) but Kubby gets a publically trading company with "no fee perpetual non exclusive license" to his own stuff AND own many shares in "both" companies. That's what I see at the moment. Lets see what the SEC filings say, how many shares is the dividend as well as how any shares will Kush start with? At least we all know what the recently raised $300k Senior note is helping pay for. Historically, spinoffs are good for investors if you can handle the ride.
This may actually lure buying for investors looking to gain free shares of the newer spinoff Kush? The last 12 trades on Thurs, 10 of them were all buys at $2.25 & shortys were at 27% on 10k volume. On Wed July 2nd shortys were 47% on 5k volume??
We may see some buying to cover as well because when this type of thing happens I believe the SEC will make all Transfer Agents post all shares in order to complete the spinoff?? It's literally how they know who gets what shares!
Good luck to all, have great holiday weekend, time will tell on CBDS - I'm watching closely & hope good news by end of Aug
**TO ALL INVESTORS OF CANNABIS STOCKS - until the US Federal government reclassifies cannabis, no institution will touch these stocks! It is as easy as the next president saying "stop all states allowing cannabis" and this will be game over!
