Cannabis Sativa Inc (OTCMKTS:CBDS) continues to edge lower in the market, away from highs of $2.20 a share clocked recently. Investors looking ahead, away from the 2015 financial report, has triggered the selloff.
The surprise climb in the recent past was a response to positive Phase 3 trial data for GW Pharmaceutical drug Epidiolex for the treatment of Dravet Syndrome. If approved, the new drug could open more opportunities, not only for Cannabis Sativa Inc (OTCMKTS:CBDS) but also for the entire marijuana industry at large.
However, given there is no data supporting that Cannabis Sativa will be able to capitalize on the new data the stock has been edging lower in the market. The stock is currently trading at a tight range of between $1.81 and $1.92 a share. Having posted a quarterly loss of $1.8 million in the recent quarter. The company is doing all it can shore up sales going forward.
The company is now relying on roadshows to fuel demand for its products. The push has allowed the company to interact with industry professionals. Its recent show was in California where it displayed its Wild Earth Naturals CBD infused water, Recover Topical Balm, and Water Soluble Hemp Capsules.
Stock Dilution Concerns
Even as the company continues to bet big on initiatives geared towards presenting its products to a wider consumer market, its capex has been on a decline. A bulk of it costs now comes from non-cash transactions thus helping maintain a solid balance sheet.
Most of the non-cash transactions Cannabis Sativa is engaging in, involve the sale of stock. Even though the same helps in maintaining a stable balance sheet, concerns over its impact on stock’s dilution levels should be a point of concern for investors.
To counter stock dilution concerns Cannabis Sativa Inc (OTCMKTS:CBDS) will have to look for o there financing options.