Dragni Dragnev

Cannabis Science Inc. (OTCMKTS:CBIS) Springs Into Motion

by Dragni Dragnev May 5, 2016

Cannabis Science Inc. (OTCMKTS:CBIS, CBIS message board) got back into the list of the OTC Markets' most traded yesterday, as the news of the DEA's approval of PTSD related marijuana tests hit the web.

There could be little doubt that this is a notable step forward for the marijuana industry. If clinical trials confirm that PTSD can be healed, or even alleviated, through the use of marijuana or some marijuana-related product, this could mean a great deal for anyone capitalizing on the growing cannabis market in the US.

However, it doesn't seem like CBIS qualifies to fit in the category. No, a bit of due diligence suggests that this particular company is not really capitalizing on much of anything:

  • cash - $5 thousand
  • total current assets - $138 thousand
  • total current liabilities - $5.1 million
  • revenue for Q3 2015 - $4 thousand
  • net loss for Q3 2015 - $3.9 MILLION

True, those numbers are somewhat outdated – but then again, CBIS doesn't seem to be in a big hurry to remedy the situation. Which means that there is no way to know if things have gotten better – and, judging by the company's idleness to date, there's a fair to good chance that they have actually gotten worse.

For instance, there's no way to know much harm the company’s tendency towards rampant dilution has done since CBIS last reported. Last year alone, the company issued 163 million shares of its common stock to "various individuals and companies" among which were its former CEO, the current CEO, the COO, and the CFO. Who knows how many more suspicious shares of common stock, or notes for the issuance thereof, have been printed since then?

To recap – recent developments have proved beneficial for the marijuana industry, but it has little to no bearing on CBIS, as the company seems to do very little business all, be it marijuana related or otherwise. Furthermore, we currently know very little of the various dangers that threaten CBIS investor value – and if the company's past is any indication, said dangers could be many indeed. Investors should take all these facts into consideration, and beware.

Comments 1

1. Guest
May 05, 2016, 02:11PM

Quotes I've always believed in marijuana as medicine. It's a shame Cannabis Science has been a complete disaster. I can only hope the people in charge are prosecuted & go to prison.

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