Cannabis Science Inc (OTCMKTS:CBIS) continues to feel a bit heavy despite putting out a ton of “exciting” press releases. The big reasons for this, as we noted recently, are the CBIS’s lack of actual sales growth and its long history of rampant dilution.
In any case, CBIS’s principals have long been master storytellers, and that tradition continues with its latest release, which notes that “significant comprehensive educational, economic, and property development plans are underway for its 250-acre CBIS/FSO NAC MBS industrial hemp project. To date, there have been approximately 25-30 part-time workers from the community hired so far, and it is expected that another 50-75 people will be hired before the harvest is completed. The harvesting process is very labor intensive and very seasonal until the staggering process has been completed for year-round harvesting. At that point, the Company expects the number of full-time permanent staff required from the community to increase substantially to service the full 250 acres for this project and any required expansions.”
Cannabis Science Inc (OTCMKTS:CBIS) is a company that has been actively striving for, and achieving a bump in legitimacy through some of its newly established relationships. However, the concept of sales still seems far off, which is a bit remarkable.
CBIS defines itself according to the narrative of a leading-edge researcher and designer of cannabinoid solutions to health problems.
CBIS is involved in developing medicines for autism, blood pressure, cancer and cancer side effects, as well as for other illnesses comprising for general health maintenance. It also develops CS-TATI-1 for newly diagnosed and treatment-experienced patients with drug-resistant HIV strains, as well as those intolerant of available therapies; CS-S/BCC-1 to treat basal and squamous cell carcinomas; and a proprietary cannabis-based therapy for neurological conditions.
In addition, CBIS offers an online video-based medical cannabis education system, including courses, such as medical cannabis law, medical marijuana, cooking, horticulture, and bud tending; and manufactures and distributes specialty horse and pet grooming and topical applications. It has a license agreement with Apothecary Genetics Investments LLC to produce various brand formulations for California medical cannabis market.
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As noted above, CBIS has recently turned its attention to the industrial hemp market, despite really having any clear path toward sales growth via that market space. Management continues its tradition with a vague and abstract press release filled with exciting adjectives and adverbs, yet conveying very little in the way of concrete business objectives, updates, or data.
In fact, its latest release seems very much like public relations, with a detailed description of the parameters of a project that seems to have nothing to do with revenue generation. As a case in point: “The main function of the University Partnerships is the responsibility and complete oversight of the Native American economic development initiative. A primary goal of RCDU, a school of Law, Business, and Healthcare, is to provide financially challenged communities an affordable opportunity to acquire a quality education beginning with a structured and regulated program in Law. As an intricate part of each land package deal with CBIS/FSO NAC, RCDU expects to provide full scholarships and additionally subsidized education packages to members of the Native American community and any other challenged individuals with the desire to grow with the initiative.”
Now, I suppose it’s wonderful for communities to benefit. But this is usually the purview of a company that is actually making some kind of return on investment and wants to give something back, rather than a company taking in investment dollars, returning nothing on them, and diluting shareholders. It’s a very strange situation.
That said, recent action has seen 4% added to share values of the name over the past month of action, a rally that has pushed up against longer standing distributive pressure in the stock. However, CBIS has a track record that includes a number of dramatic bounces. What’s more, the company has seen interest climb, with an increase in recent trading volume of 9% over what the stock has registered over the longer term.
Now commanding a market cap of $124.38M, CBIS has a store ($322K) of cash on the books, which stands against about $2.3M in total current liabilities. One should also note that debt has been growing over recent quarters. CBIS is pulling in extremely nominal trailing 12-month revenues of $7K. However, the company is seeing declines on the top line on a quarterly y/y basis from even that tiny level. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $CBIS stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $CBIS, either long or short, and we have not been compensated for this article.