Cannabis Science Inc (OTCMKTS:CBIS) reported the issuance and closure of the earlier filed dividend payout as submitted with the U.S. SEC on August 18, 2011. The company plans to submit another Information Statement in order to accommodate new shareholders and to bring all of existing shareholders on the growth curve.
Cannabis Science intends to accelerate its existing FDA targeted product advancement programs and work on expansion of its initiatives. Enhancing shareholder value is of prime significance for all the participants involved. For the purpose, the company will file for an innovative trading symbol to accommodate a financing worth $15 million to $25 million.
Cannabis Science has been negotiating for the newly formed category of dividend payout “Common A stock.” At the same time, it is working on the measure to get up list on NASDAQ platform. For the purpose, it intends to submit the complete new structure strategy with no reverse split plan by the end of August.
The management view
Raymond C. Dabney, the President and CEO of Cannabis Science, said that they are very thrilled to provide all the company’s shareholders with a payout and move on with the operations. It has been an exciting and long process, with ample opportunities grabbed in due course. The management believes this new dividend payout structure provides all the shareholders of record an excellent opportunity to cash on the payout to establish another asset platform for them.
At the same time, the company uses the new class with a higher value to finalize the talks for a much larger financing that will support the planned drug development programs. As regulation changes, it results in ample opportunities and also create obstacles in the way of grabbing those opportunities.
Cannabis Science Inc (OTCMKTS:CBIS) had rallied very sharply from $0.016 to $0.043 levels in a single session on Wednesday and followed that with another major gain of 20.34% in the next session yesterday. The volume of 64 million was lower than the volume of the previous session but still considerably higher than the daily average of 11 million. The stock is testing the strongest supply area in the band of $0.045-$0.050 and the price action at this point will determine the next course of direction. From the bullish perspective, a bit of correction here would be a healthy pause and helpful for the next advance.