Cannabis Science Inc (OTCMKTS:CBIS) share price continues to fall into the abyss hitting a new historic record low of $0.102. The last time the stock price was close to these levels it staged an impressive reversal in late 2011 and early 2012 locking in gains of over 1,600%. If CBIS can stage a similar reversal and rally to new highs, it would see gains an excess of 1,900%.
CBIS has a large amount of shares outstanding exceeding 1.30 billion shares which is quite significant. Daily average volume is above 9 million shares trading almost everyday. This allows for significant liquidity and allows day traders to get in and out easier. CBIS seems to continue to disappoint investors as the stock continues its downtrend.
In recent developments, CBIS has announced that is expanding plans to share gifts to all shareholders up to March 31, 2016. This includes all old and new shareholders of record up to the end of the month. The gift is actually gifted shares. The CEO is actually gifting his personal shares to reward current and new shareholders of record on March 31, 2016. The CEO quoted saying, “I am so happy to personally ‘reward’ our investors, so to speak, by gifting them my own shares. As we enter the next phase of the Company’s development, the timing of this shareholder ‘thank you’ is perfect.”
However, here is the catch with the gift. CBIS was previously trying to complete a dividend payout to shareholders; however the company hit a regulatory snag. FINRA the Financial Industry Regulatory Authority blocked the dividend payout from the company. CBIS had announced two dividends one for Oct. 9 2015 and Dec 31 2010). Due to this implication, the CEO made an unprecedented announcement that he would gift his personal shares to investors to the equivalent value of the dividend.
We have a Monster Pick Coming. Subscribe Right Now!
CBIS is currently trading at a $12.72 million market valuation. CBIS recent announcement of the CEO gift his personally shares is significant and almost never heard of before. This shows that management can be relied upon. With the stock hitting record lows, zero revenues, no cash, and almost $5 million in liabilities it is hard to see the positive in this situation. Don’t be a bag holder here and stay tuned on new advancements and developments.
We will be updating on CBIS when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with CBIS.
Disclosure: we hold no position in CBIS either long or short and we have not been compensated for this article.
Subscribe To Microcap Newsletter
By entering your email address you agree to get email updates from Microcap Spotlight. We'll respect your privacy and unsubscribe at any time.