The one cannabis firm that released financial report this week and showed no indications of growth was Cannabis Science Inc (OTCMKTS:CBIS). It submitted its 10-Q with the U.S. SEC this week for 3Q2016 reflecting 2x the operating loss compared to the same quarter, a year earlier. In addition, the report showed considerable decline in assets and increase in liabilities. Meanwhile, the count of common shares outstanding for company has almost doubled, leaving stockholders further diluted.
With securities prices down nearly 16% in the last few trading days, the experts think that this could be a pullback that long-term contrarian investors and technical traders use to set a buying base. On contrary, some participants believe it to be the start of a deep sell-off.
The financial performance
For the nine months closed September 30, 2016, Cannabis Science reported revenue of $8,250 as against the revenue of $4,150 in prior year nine months closed September 30, 2015. This jump in revenue is following license income from product sales and properties acquisition of Equi-Pharm. Research and development costs declined by $116,748 to $265,024 for the reported period compared to $381,772 for the nine months closed September 30, 2015.
In a recent press release, the company reported that they will be commencing clinical research to find and advance agonist cannabinoids and IGXBio’s ‘GenePro®’. These are alike the agonist cannabinoids stated above that Cara Therapeutics is advancing. The GenePro medication that they are working to advance DNA immunotherapies to cure HIV and more. Cannabis Science will ensure that investors are updated as there are more advancements in the development of GenePro.
Dr. Allen Herman, the CMO, said that they are looking to cement their foothold in the extensive pharmaceutical drug development market. The company anticipate IGXBio, GenePro® drug development plan to be a big pharmaceutical success. Together with property development deals, they are securing the needed land base to deliver a major countrywide pharmaceutical demand. The program specifics are ongoing and they will update results and progress as they come in.