Cannabis Science Inc (OTCMKTS:CBIS) is a core micro-cap MMJ story that has grabbed hold of the attention of traders during the stock’s recent bounce back toward the “Green Rush 2.0” highs logged back in late October. The recent move has been steady and impressive, and clearly centered around the theme of the company’s move toward clinical trials.
On that note, the company just announced its latest steps in that process, including reports of a collaborative research agreement with Dana Farber/Harvard Cancer Center (DF/HCC). The agreement lays the foundation for a cooperative research initiative to explore and develop new cannabinoid medicines to fight cancer. According to the release, this agreement is also the first step in the development of clinical trials that will lead to approval of successful cannabinoids by the FDA.
Cannabis Science Inc (OTCMKTS:CBIS) frames itself as a company that develops, produces, and commercializes phyto cannabinoid-based pharmaceutical products primarily in the United States. The company 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, the company 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.
Cannabis Science Inc also has collaboration with IGXBio, Inc. to develop GenePro, a DNA-based immunotherapeutic drug. Cannabis Science, Inc. is based in Colorado Springs, Colorado. Cannabis Science Inc is a subsidiary of Weedmaps Media, Inc.
According to company materials, “Cannabis Science, Inc., takes advantage of its unique understanding of metabolic processes to provide novel treatment approaches to several illnesses for which current treatments and understanding remain unsatisfactory. Cannabinoids have an extensive history dating back thousands of years, and currently, there are a growing number of peer-reviewed scientific publications that document the underlying biochemical pathways that cannabinoids modulate. The Company works with leading experts in drug development, medicinal characterization, and clinical research to develop, produce, and commercialize novel therapeutic approaches for the treatment for illnesses caused by infections as well as for age-related illness. Our initial focus is on skin cancers, HIV/AIDS, and neurological conditions. The Company is proceeding with the research and development of its proprietary drugs as a part of this initial focus: CS-S/BCC-1, CS-TATI-1, and CS-NEURO-1, respectively.”
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Professor Wilfred Ngwa, PhD., Director, Global Health Catalyst, Dana Farber/Harvard Cancer Center, commented at length on the prospects offered by the collaborative relationship with CBIS:
“We believe that collaborative cutting-edge work is the most powerful approach in fighting cancer. This collaborative agreement brings together the expertise of a leading Cannabis Research Company, Cannabis Science, and the research strength of Dana Farber/Harvard Cancer Center. I can see how this collaboration with Cannabis Science will grow as we work together for commercialization of joint research successes, with ultimate goal of translating these successes to benefit cancer patients in the USA and across the globe. So, I’m excited to get started setting up what could become a leading Cannabis Science Institute lab under my direction here at the Harvard Institute of Medicine. Under this agreement, Cannabis Science will have access to the best expertise within Dana Farber/Harvard Cancer Center to help develop multiple preclinical and clinical cannabinoid compounds. As we progress, we can bring cannabinoid cancer compounds to clinical trials and to FDA approval process quickly and efficiently. So many patients still die of cancer, hence our urgency and obligation to swiftly pursue cutting-edge research that can benefit patients.”
The chart shows 65% during the past month in terms of shareholder gains in the listing. This is emblematic of the stock. CBIS has a track record that includes a number of dramatic bounces. Moreover, the stock has benefitted from a jump in recent trading volume to the tune of 44% over the long run average.
This should not be overlooked given the stock’s relatively small trading float of 24M shares. As savvy traders are well aware, with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze. Since we last covered the name, the stock has moved 16.5% higher.
Currently trading at a market capitalization of $151.9M, CBIS has virtually no cash on the books, which must be weighed relative to about $2.1M in total current liabilities. One should also note that debt has been growing over recent quarters. CBIS is pulling in nominal trailing 12-month revenues of $49K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -34.1%.
This is the struggle with CBIS: terrible balance sheet, growing debt, small and falling sales, and massive priors on the dilutive front. It’s not pretty. That said, the defining idea with the cannabis patch right now is this: the past is the past, the future is something bigger as the legislative revolution continues to roll up “Mount Inevitability”. In addition, the chart is working well right now and the headline flow is strong. We will update the story again soon as developments transpire. 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 hot stock pick!