Cannabis Science, Inc. (OTC:CBIS) got surprisingly high volume yesterday. The excitement was apparently over a press release by the company.
The session was moving slowly with rare trades, until about 3 pm. The press release sparked active trading which led to a close at $0.016, 28% up on 16.3 million CBIS traded shares.
As a matter of fact, the announcement was just that a second skin cancer patient was self-administering cannabis extracts.[BANNER]
The market response may seem to unproportionate, but one must keep in mind that CBIS shareholders don’t have much else to be excited about.
The company’s financial situation is nothing short of dreadful with $6.2 thousand in cash, $70 thousand total assets, and $2.1 million total current liabilities.
The general trend for CBIS has been negative for a while, and not surprisingly so. On top of the bad financials, CBIS has been diluting its stock in huge proportions. At the beginning of the year, the OS was approximately 101 million shares; as of Nov. 4 it was close to 242 million.
The market response from yesterday may have been mostly fueled by desperation. CBIS had hit a new low at $0.0125 last week, and even a largely mute point as the one delivered in the press release was enough to cause some price increase.
After the close some promotional newsletters were sent out. The promoter disclosed $8 thousand as compensation. This is not very likely to offset the poor performance of the company.
