A double whammy - no less! Just when it began to look a little rosy for CBI (Cannabis Science, Inc.) investors, the rug has been temporary pulled out from underneath with having both of the carefully crafted revenue streams slowed to a trickle.
Dr. A. Morales (a.k.a. the snake) has betrayed his colleagues, his profession and CBIS investors, all in the name of self-interest. My best guess is that he figured that by buying his way into and establishing himself as Montana Pain Management COO, that the potential reward was worth the risk and that any legal, financial, or professional repercussions from his overt actions would pale in comparison to the potential financial gain that an ever expanding 100+ patients per day facility could provide him.
Rick Risio (a.k.a. Slick Rick) is no better, and the fact that he was, by his own admission " ... $500,000 in the hole", would easily explain why he was so eager to cut a deal with "the snake". It offered him a quick way to cover his escape from pressing personal debt issues.
One might also see the newly signed leasing agreement with RockBrook as a temporary setback. Instead of collecting 100% of the revenues in exchange for a block of restricted CBIS shares, they are having to settle for 50%, although much of the difference can eventually be made up or exceeded by adding new RockBrook dispensaries, and in the long run may actually prove to be more beneficial to the bottom line. However, short term it will have a marked impact on the bottom line.
The PR put out by FSIO was just a thinly veiled (but supportive) attempt to partially offset the negative news surrounding the disappearance of one revenue stream and the dissipation of the other of their new venture partner
Advent of these new revelations certainly explains why the Q-10 has been delayed and it would not be surprising to see CBI miss the 15 day deadline of (August 31) that the SEC has set. All that being said we would expect the PPS to suffer somewhat in the interim, at least until we get closer to the November and the proposition votes on the agenda of at least 5 states. After this recent Montana debacle, CBI is likely to be much more selective in their search for new out-of-state dispensaries which will unfortunately have a negative affect in slowing down the process of establishing new revenue streams to replace those ... that have turned out to be non de facto.
It boils down to who and what can you trust these days. Heretofore, trusted company officials like CEO Kubby and Advisor Board Member Morales have proven disloyal (even traitorous) and baneful to the success of Cannabis Science. The various State Regulatory Laws regarding marijuana are in flux and continue to change everyday, causing small companies like CBI to constantly alter their business plans thereby disrupting their quick path to success.
Yes, many "potholes" lay ahead, yet to be traversed. But CBIS will prevail in the end and reward those investors who keep the faith and stay the course.
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