Cannabis Science, Inc. (OTC:CBIS) appears to have reached a turning point after a short price burst induced by the company’s announcement of its guidance on the process of getting the FDA approval for the medical marihuana products. The company also announced dividends to be paid out as a new class of common stock.The stock price still holds the more than 44% bonus it earned since last Friday, however, despite the heavy trading volume the initial market excitement seems to be wearing off. Since the share price rocketed on actual news, and a promotion was involved, traders could expect a milder slope of decline over the coming several trading sessions as compared to a quick boost-plummet scenario imposed solely by stock advertising (even though some third party paid promotions were disclosed in September).[BANNER]
In the news, the company said the counsel is currently reviewing a proposal for a dividend payout to the current shareholders. The conclusion should be announced this week.
CBIS stock has not been looking good recently – it lost 83% of its value over the past year and the decline can be explained by the lack of progress and by the tough financial situation of Cannabis Science. The development stage company operated virtually without any cash last year. The business has burnt over $50 million since inception in 2005, and the company still has a long way to walk to get the FDA approval if the drugs don’t get fast tracked.
