CANNABIZ MOBILE, INC (OTCMKTS:LGBI) jumped more than 79% on Thursday’s trading session on its heaviest share volume over last month to close above triple-zero land. The reason behind such a sharp move was not apparent. The company has not issued any press releases since March 25. The last press release highlighted a weird digital widget named as the “canna bizcard”. It is a SMS platform that creates a base for professionals in product sales, services and investor relations.
Cannabiz Mobile submitted its latest annual report a month ago. It was delayed report which contained some horrifying numbers. As per the annual report for FY2014, the company posted cash of just eight US dollars. The total liabilities came at $559,000. Cannabiz has not reported any revenues since 2012. The net loss for the year stood at $122,000. The numbers clearly don’t support such a large move on the upside.
Cannabiz Mobile performance is worsened by the dilution of its shares. Last September, the company reported 34 million outstanding shares which increased to 54 million in a matter of few months. Currently, Cannabis Mobile has almost 395 million outstanding shares while the authorized shares figure stands at 750 million. It indicates that the company diluted its common stock by over 2000% over last six months.
The financial performance and dilution doesn’t bother the traders who are actively benefitting from swing trades. They are trading millions of shares as the discussion boards are highlighted with the marijuana-related news. As a matter of fact, whenever there is any marijuana related news all the stocks related to the sector directly or indirectly becomes a part of the movement.
In last trading session, the stock price of LGBI consolidated and closed flat at $0.00120. The share volume was 116.87 million compared to average share volume of 76.82 million. The market cap stands at 6,000.