In yesterday’s trading session, the stock price of Cannabis Science Inc (OTCMKTS:CBIS) declined more than 5% to close the trading session at $0.0274. The decline came at a share volume of 3.94 million compared to monthly average share volume of 11.48 million. Lately, the stock has been recording a rather dismal downtrend registering eight red trading sessions out of the last eleven trading sessions. As of now, there are no initial signs that can suggest reversal in stock momentum in coming days.
Back in April, Cannabis Science reported that they are willing to distribute the payout that they promised some four years ago. The company revealed that it will try to share the dividend even with more recent shareholders. The entitled investors will obtain shares from the new “Class A” common stock of CBIS. Clearly, the announcement did result in a lot of commotion. However, jump of almost 118% in just a single trading session was seen a bit of overexerted reaction considering the various red flags surrounding the company.
Cannabis Science problems start right from its performance in the latest reported quarter. The company completed FY2014 with a net loss of $16.8 million and total revenue of $1031 while at the completion of March quarter they had $37,524 in cash and $186,000 in total current assets. The total liabilities extended to $3.8 million. Cannabis Science recorded $10 in revenue and net loss of $4.2million.
These numbers are almost six months old, and there is no choice but to refer this numbers as the quarterly financial report for the quarter ended June 30, 2015 is nowhere to be found. The report was expected to be completed by mid-August. However, on August 17, Cannabis Science submitted a late filing notification which allowed them a five day extension. It is more than a month to the extended deadline and still the report is to be found nowhere.
Cannabis Science Inc (OTCMKTS:CBIS) lost most of the intraday recovery made on the previous day as it ended the last trading session with a loss of 5.52%. The long lower wick of the previous candle raised some hopes about a possible bounce but this latest candle negated that. The volume of the day at 3.9 million was lower than the daily average of 5.5 million, reflecting the corrective nature of the immediate price action. The stock may soon test the lower boundary of the short term range at $0.0225 and the price action there may determine the next course of direction.