Cannabis Science Inc (OTCMKTS:CBIS) has become itself once again. We liked this stock for a short time back in October of last year when it had cleared up its messaging and seemed to possibly be aiming at something of substance. But now, unfortunately, we are back to the CBIS of old: pipedream proclamations and a market that seems to know it. I cannot imagine how the company continues to employ its current PR team.
The latest abomination of messaging strategy claims – for this company that makes no money and has no serious operational strategy – to be an introduction for some kind of awards ceremony – a black-tie gala. The move is meant to precede the opening of dispensaries, which themselves are meant to be a precursory move for a cryptocurrency. Longtime observers of this company may soundly speculate that all of these concepts are doubtful to ever materialize.
Cannabis Science Inc (OTCMKTS:CBIS) defines itself according to the narrative of a leading-edge researcher and designer of cannabinoid solutions to health problems.
The company has been a world-class dilution machine over many years, and any serious larger time-frame bullish thesis must ultimately square off with that dynamic. Over the past 18 years, the real value of a $54,000 investment here has fallen to less than a dime. This is simply due to tactics such as reverse splits, convertible debt, and share creation.
The company has never really made any money, and consistently uses communications tactics to latch onto whatever new theme is tickling the palate of microcap investors, such as its latest attempt to latch onto the cryptocurrency theme. We think there is virtually no chance that this idea will ever amount to anything. They create shares and sell them with messaging and pay themselves. There are many “real companies” in the micro-cap space. As far as we have seen over the years, this is not one of them. Be sure to keep that in mind.
CBIS claims to be involved in developing medicines for autism, blood pressure, cancer and cancer side effects, as well as for other illnesses comprising for general health maintenance, though no sales have ever materialized from any of these pursuits.
It also claims to be developing 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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According to the company’s recent release, “The buildout of our Pre ICO pharmacies is nearing finalization, and the training of our management and sales personnel is well underway,” stated Mr. Raymond C. Dabney, CBIS’ President, CEO, and Co-founder. “Our architects and construction team have exceeded our expectations for our Cannabis Science branded pharmacies. These flagship pharmacies will establish a corporate standard and serve as models as we acquire new pharmacies in California and eventually throughout the U.S.”
Recent action has been flat for the stock over the past week of action. Nonetheless, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 12% beyond what we have been seeing over the larger time frame.
Earning a current market cap value of $222.5M, CBIS has virtually no cash on the books, which compares with about $2.3M in total current liabilities. In other words, the balance sheet here is a disaster. CBIS doesn’t make any money and basically never has, even though it has been publicly traded for nearly two decades. This is always an interesting story – somewhat like a road accident – and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CBIS stock, as well as other hot stock picks, get 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.