Cannabis Science Inc (OTCMKTS:CBIS) Disappoints Yet Again

Cannabis Science Inc (OTCMKTS:CBIS) has let down its shareholders again. For the first two months of this year, we've been watching CBIS and thought that in spite of past broken promises, the company might be due for a bounce. We said last month:

"The biggest overhang on CBIS has been constant dilution. However, with that being said and looking at CBIS impartially, the stock could be ripe for a bounce. There’s no doubt it’s oversold on the charts and if there is some positive developments, shares could take off on short covering like they did the last time they got to these levels. Management is under pressure and no doubt they realize that they have to make something happen. Judging from the comments on the message boards, it’s clear that there are a lot of pissed off and angry shareholders. Delivering on something will go a long way to appeasing the current shareholder base of CBIS."

Boy, we're we wrong! We believed that some positive news could create a short covering bounce and at least give some hope to long suffering shareholders. We did get news, but it was the BS kind of news that CBIS has become associated with. One of which was a press release praising Dr. Sanjay Gupta from CNN. The press release said:

"Cannabis Science, Inc. (OTC PINK: CBIS), a U.S. Company specializing in medicinal cannabis based formulations for formal drug development, continues to support top surgeon and CNN Medical Correspondent Dr. Sanjay Gupta for his historic and high profile work educating the U.S. and the world about the benefits of medical cannabis and support for the medical cannabis community."

This would lead one to believe that Dr. Gupta actually has something to do with CBIS, but he DOES NOT! There was no point to this press release other than to create headlines and mislead the investing public. Adding further insult, Director Robert Kane said:

"Dr. Gupta has without doubt become a champion for patients in need of cannabis based medicines. His high profile and respected position has given him an incredible platform to change the focus of the medical cannabis debate. We at Cannabis Science are looking forward to supporting Dr. Gupta with providing state of art scientific data. Thanks to his commitment and the decades of work by countless advocates and patients, the pace of medical cannabis reform and the interest in providing science-based evidence has certainly accelerated."

But the icing on the cake came on March 4 when the company announced that CEO Raymond Dabney would gift personal shares to make up for previously announced dividends. The company said:

"Due to the refusal of the Financial Industry Regulatory Authority (FINRA) to process the Company's previously-announced proposed dividend payouts, Co-Founder, President & CEO Mr. Raymond C. Dabney, in an unprecedented move, will personally gift shareholders the proposed dividend shares. Mr. Dabney will be replacing both planned dividends with his own personal shares."

Number one where don't even know where to begin here. A refusal by FINRA is a huge red flag in our opinion. Second, these shares are just going to be sold into the market taking the stock price even lower. Shareholders are pissed and they are not going to hold these additional shares. Third, will Dabney even come through and deliver the shares as promised? He has let shareholders down in the past, why change course now?The bottom line is that we see nothing to get excited about with CBIS. On closer inspection, the company had less than $5k in cash at the end of September, $138k in assets, and over $5.1m in obligations due over the next year. Overall, we couldn't be more disappointed. We will be updating Insider Financial as soon as we know more. For continuing coverage on CBIS and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CBIS and have not been compensated for this article.