On Monday, the stock price of Cannabis Science Inc (OTCMKTS:CBIS) took another hit and after erasing nearly 5% of its price closed at $0.0429. This is the lowest close price posted by the company in last one year. The number of shares sold throughout the trading session was 3.63 million compared to average volume of 3.64 million.
Cannabis Science was supposed to launch its first product line at the Spannabis conference that was held from March 20 to March 22, 2015 in Spain. Last week, the company finally released a PR about the Spannabis conference focusing on “strong customer interest” received for products. However, the positive PR did little to increase investors’ confidence in CBIS stock. The shareholders certainly have few reasons to be cautious when approaching Cannabis Science stock.
Despite in the current industry for six years, the financials of Cannabis Science are disappointing. As per the last quarterly report at the end of September, 2014, the company had $443,000 in cash, $782,000 in total current assets and total current liabilities stood at $4.1 million. The liabilities figure is huge especially for a company that reported zero revenue in the quarter. The net loss was $675,000 and accumulated deficit totaled at $100 million.
On March 18, 2015 Cannabis Science Inc (OTCMKTS:CBIS) disclosed that it hired Cohen Grassroots Research, Inc. to start detailed analytical coverage of the company. Following it, the research firm published a 115-page report. As per the report, the revenue of company is expected to surge to more than $64 million from $0.1 million in a matter of just five years. It is a bold prediction for a company that reported just $1031 of revenue in the first three quarters of FY2014. The research firm received $2,500 as compensation and 3.5 million shares of Rule 144 common stock for their services.