Cannabis Science Inc (OTCMKTS:CBIS) Is Trying Out Cannabis Suppositories

Cannabis Science Inc (OTCMKTS:CBIS) is trading at around a 50% discount to its February highs. Just as did a large portion of the cannabis space, the company picked up strength towards the end of last year when recreational cannabis got the green light in a number of US states. Unlike many others, however, the company also managed to build on the strength and ran up to the aforementioned highs of $0.12 a share from less than $0.04 a share in October 2016.At last count, however, Cannabis Science closed out at $0.06 a piece.So, what’s next?Well, the fact that the company is trading down from highs isn’t necessarily representative of a lack of operational development. Management has maintained a pretty constant stream of press releases detailing operational updates and fundamental advance across the last few months, and – as is a rarity in the space – most of these updates have been pertinent (as opposed to fluff). Not that we haven’t seen our fair share of fluff from Cannabis Science, but to date, it’s generally been reinforced by something solid. We just got a fresh release from the company and markets are yet to react to the news. As we head into early next week, we think that could be some near-term upside on the back of the development, and this makes it well worth highlighting before markets close out for the weekend.So, here goes.For those not familiar with the company, and as we highlighted last time, this one is a two-pronged play. It’s got a cannabis production and manufacturing arm, which we see as providing bread-and-butter type revenues for the foreseeable future (and, in reality, serving to underpin the majority of the company's fundamental value). The second is a drug development arm, which as things stand, contains a number of assets targeting pretty big indications – neurodegenerative disorders, cancer, that sort of thing. The assets that comprise this element of the company’s operations, however, are very early stage, and while we will likely see some near-term catalysts hit press as they move into the clinic and develop along the path towards commercialization, it’s not going to impact top line for the foreseeable future, and it’s going to be a drain on cash resources. Not that that’s unusual for a company at this end of the sector, but it’s well worth keeping in mind.The latest news, then, kind of falls in the middle ground between these two operations. The company just announced that it has developed a suppository type cannabis medication and is targeting self-medicating men and women in the US with the product as part of a proof of concept type rollout. The idea is that this sort of administration can be a lot more reliable and quantifiable (in terms of dosage) than other administrations – smoking, oils and even oral administration – and that this should improve the quality of self-medication for the patients taking part in the study. It’s not an official FDA registered study or anything like that, but if it goes well, it’s going to serve as an upside driver for Cannabis Science from a financial, as opposed to regulatory, standpoint. So that’s where things stand. Anyone thinking of picking up an exposure to this one should be aware that there’s a pending $25 million (dilutive) investment that management has said it will announce any day now, so we might see a near-term dip when this hits press. Markets have been given plenty of warning, however, so there’s a good chance it’s already baked into price; at least for the most part. All said, it's still a speculative cannabis play, but there are plenty of shots on goal for the stock, and in turn, plenty of run room, if it can avoid anything toxic from a balance sheet perspective.We will be updating our subscribers as soon as we know more. For the latest updates on CBIS, sign up below!Disclosure: We have no position in CBIS and have not been compensated for this article.