NOTE***** OPMZ is an MMJ tech company with disruptive tech in the medical cannabis field and on high alert today as momentum is building!
Up over 30% and just getting started
As this week progresses we believe the BUZZ and momentum around OPMZ will definitely continue.
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Last Thursday Cannabis Science Inc (OTCMKTS:CBIS, CBIS message board) Announced that they have negotiated a new drug development and facilities deal in the State of Nevada for approximately 360 thousand sq. ft. licensed cannabinioid grow and a separate formulation processing operation. The news drove investors into a buying frenzy and on that dayCBIS soared by 20% on a volume of 55 million shares. It seems that the long weekend made investors even more excited and yesterday the stock posted even better results.
CBIS opened at $0.02 and began to steadily climb higher and higher up the chart. By the time of the closing bell the ticker was sitting at $0.0246 for a daily gain of 28%. Investors were so eager to trade the stock that they shifted more than 89.5 million of the company’s shares resulting in a trade value for the day of over $2 million.
It is clear that quite a lot of investors are rushing towardsCBIS but skipping on the due diligence and relying solely on hype may not be a wise decision. For starters the PR didn’t contain any meaningful information about the specifics of the deal. This means that we don’t know how much money CBIS will have to pay and if the sum is going to be in cash. As we said in our previous article this is incredibly important because the financials of the company do not inspire much confidence and could justifiably be described as abysmal. Opening the latest financial report filed by CBIS reveals that at the end of September 2015 it had:
- $4791 cash
• $138 thousand total current assets
• $5.1 million total current liabilities
• $4150 revenue
• $3.9 million net loss
And if that wasn’t enough investors have to also factor in the severe dilution of the common stock. Last year millions of shares were issued to various companies and individuals including insiders of the company.CBIS has numerous compensation and equity award plans and just a month ago they submitted a new S-8 registration statement.
In the next couple of days CBIS could continue to see heightened trading. The annual report for 2015 is supposed to be filed by Thursday, which is also the date set by CBIS for those investors who want to be eligible for receiving shares as part of the gift promised by the CEO of the company. Keep in mind that Mr. Dabney was forced to do so after CBIS failed to get its two previously proposed dividends approved by FINRA.
Source: Hot Stocked
SCS LLC has not been compensated for this article.
SCS LLC was previously compensated up to twenty thousand dollars each by star media llc for the mention of INVT and XXII however those contracts have