Replies to post #97127 on Cannabis Science Inc (fka CBIS)

[Art Vandeley]

What a sweet deal to whomever "loaned" them the money.

Adding insult to injury for shareholders is how the company further uses monopoly money. In the three months ended 9/30/12, they issued stock at prices well below the fair market price to settle debts. While the public is buying stock on the open market at much higher prices, the company is handing out stock valued at 1/10th of a penny:

On July 20, 2012, the Company issued 30,000,000 common shares for settlement of $30,000 of stockholder debt, for a loss on settlement of $1,530,000, assigned from the stockholder notes payable originating on August 4, 2011, September 26, 2011 and September 30, 2011.

[Art Vandeley]

Thanks to acquisitions (GGECO University, which is now Cannabis Science University, and Cannabis Consulting Inc., which was formerly operated by their current Director of Investor Relations, Robert Kane), they did have course and consulting revenue of $1,848. Plus, they had $750 of interest earned. The sad part of this revenue is how much it cost them. They issued Kane 1mm shares ($147K) along with 250K free-trading shares ($25K) for "services rendered". GGECO cost 25mm shares ($935K, or $984K with assumed liabilities). These acquisitions, which closed in Q1 and cost over $1mm (in shares), generated $1,848 in sales two quarters later.

http://seekingalpha.com/article/1262781-cannabis-science-masters-the-art-of-shareholder-dilution?source=google_news