Cannabis Science Inc (OTCMKTS:CBIS) shares continue to fight for support. CBIS recently put out a new press release aiming to stoke the flames of investor enthusiasm. So far, that message has found a limited result, though it is worth taking a look. Specifically, CBIS just announced that it has found a California facility ideal for its large-scale manufacturing and product distribution center as it ramps up its efforts to supply cannabinoid medications in high-demand by self-medicating patients. CBIS also noted that it has started to look for such a facility for similar operations in Nevada.
As with so many press releases by CBIS, we must maintain some rational skepticism – the company is notorious for its partial starts and stops in terms of actual operations. There is always a big plan, and always a huge and exciting step that falls short of actual investment, activity, or sales. This may finally be the real thing this time, so it’s important to maintain an open mind. But we would encourage caution: we want to see a signed lease before wholly trusting this next version in that narrative.
Cannabis Science Inc (OTCMKTS:CBIS) has been down an interesting road over recent months. We see the company as actively striving for, and achieving a bump in legitimacy through some of its newly established relationships.
CBIS defines itself according to the narrative of a leading-edge researcher and designer of cannabinoid solutions to health problems.
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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. CBIS also has collaboration with IGXBio, Inc. to develop GenePro, a DNA-based immunotherapeutic drug.
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.
As noted above, CBIS management recently reported that it has located a facility in California for its production and distribution. We continue to suggest skepticism on the name because this announcement implies no actual commitment, and this is a company with a long history of partial launches into real operations with nothing ever to show for it.
“We have found a perfect space for our initial, large-scale manufacturing and product distribution in California,” stated Mr. Raymond C. Dabney, President, CEO, and Co-founder. “We also have impeccable partners to assist in our rapidly moving, high-growth schedule. We now have access to the required machinery and expertise to begin the in-house manufacturing process.”
The release also notes that Nevada is experiencing a deep need for greater medical cannabis production. And the company states that it is ready to move in that direction as well.
“We have considerable land holdings in Nevada through our partnerships and we see this as an outstanding opportunity for us to speed up our cultivation efforts in Nevada. This huge demand will help us achieve our goals of becoming a large-scale producer in Nevada. This supply concern should help accelerate our approvals for licensing and help us begin new product sales in Nevada in the very near future,” concluded Mr. Dabney.
At this time, carrying a capital value in the market of $120.23M, CBIS has a stash ($333K) of cash on the books, which is balanced by about $2M in total current liabilities. CBIS is pulling in nominal trailing 12-month revenues. One should think of the company as pre-revenue, with revenues being the biggest single bull item that could appear for this company. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $CBIS stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $CBIS, either long or short, and we have not been compensated for this article.