As we discussed yesterday, CBIS is going through a paid promotion. The campaign started on July 29 and continued on July 30, and the company itself did not pay for it. The compensations were handed out by non-affiliated third parties, by Stockchat LLC and by Mic Innovations LLC (Microcap Innovations). They ranged from $1500 to $4000, with the exception of four for $8000, three of which were given to Penny Stock Chief, and one to Vip Penny Stocks.
After the press release from July 29, with which CBIS declared their support for the New York Times Editorial Board for their opposition to the current federal laws on cannabis, they issued a new one yesterday. It expressed the company’s excitement about the efforts by the U.S. House and Senate to change the medical cannabis laws in the US.
As we have already mentioned in our previous articles, CBIS has several issues that need to be considered before making an investment. The company is very close to its limit of authorized shares. CBIS has 844 million outstanding, out of 850 million authorized, but hasn’t talked about an increase of the A/S in its latest quarterly report. And since the company has no other way of financing its operations, except with share issuances, this could turn into a serious problem. Also, when you browse through CBIS‘s OTC company profile, you notice a lot of Form 4s, which show that insiders have sold over 11 million shares since the beginning of the year.
The company’s latest report is for the quarter ended March 31, and it showed that CBIS is in financial troubles.
- cash: $866 thousand
- current assets: $1.4 million
- current liabilities: $4.1 million
- revenue: $1031
- net loss: $5.8 million
The company has a working capital deficit and a ridiculous revenue. CBIS attributes the large net loss number to settlements of debt, but state that the revenue is expected to be “limited” in the foreseeable future. The only positive here is the cash supply.
CBIS is not the worst Pink tier company we have come across, but seeing as they are undergoing a pump right now, and keeping in mind all their other issues, it is crucial to do your due diligence before deciding to invest.
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