Cannabis Science Inc (OTCMKTS:CBIS) On The Verge Of A Breakout

Cannabis Science Inc (OTCMKTS:CBIS) is racing up the charts again after making a strong reversal off the $.03 lows seen last month. CBIS, like the rest of the pot sector, saw an impressive run up to the November elections, and then saw profit taking across the board. This created an opportunity for dip buyers to get in ahead of the 2017 rally we've been calling for in the marijuana sector.In 2017 we'll see the ballot initiatives that were passed in November implemented. Smart pot stock players are getting in now ahead of Green Rush 2.0 that is taking place in the U.S. and Canada. The question now for CBIS investors is not if the breakout to new 52 week highs is going to happen, but when.First up, a little background on the company. Cannabis Science Inc describes itself as taking "advantage of its unique understanding of metabolic processes to provide novel treatment approaches to several illnesses for which current treatments and understanding remain unsatisfactory." The Company works with leading experts in drug development, medicinal characterization, and clinical research to develop, produce, and commercialize novel therapeutic approaches for the treatment for illnesses caused by infections as well as for age-related illness. The initial focus is on skin cancers, HIV/AIDS, and neurological conditions. The Company is proceeding with the research and development of its proprietary drugs as a part of this initial focus: CS-S/BCC-1, CS-TATI-1, and CS-NEURO-1, respectively.The latest news from the company is that it started work on its second 33,000 sq. ft. pilot cannabinoid drug development and manufacturing facility in Douglas County, Nevada. The Douglas County, Nevada multi-phased project is the second pilot site and is currently in full build out of greenhouses, water-well development, extraction points, and manufacturing. The grow operations at this site will support the extraction of cannabinoids for the development of key proprietary formulations. CEO Raymond Dabney said:

"We have every intention of making 2017 the breakout year for our great company. To fast track our second pilot greenhouse and property build program, we ordered prefabricated and regular greenhouses. This second pilot property will house some of our grow operations and research and development activity. Our target is to begin growing a variety of prime strains in the first quarter of 2017. We need all the drug development capacity we can get, because we intend to ramp up our operations to meet the increased demand for cannabinoid medications across the country. This market is coming into full-bloom, and 2017 is the year we will be positioned to capitalize on this tremendous opportunity."

Last month, Cannabis Science announced plans to initiate a long awaited medication study for Pulmonary Patients suffering from varying failing lung functions stemming from Cancers to Bronchitis and all in between respiratory ailments. For sufferers of chronic lung disease, the lungs slowly function less and less efficiently and eventually stop working all together. Most lung diseases like COPD, interstitial lung disease and pneumoconiosis as well as lung cancers are not just chronic and progressive, but are likely terminal. With lung disease now established as the third leading cause of death in the United States, more people are looking for treatment options other than the traditional avenues of supplemental oxygen and known bronchodilators.CBD/THC therapy by IV, while not a cure for lung disease, is one of the only methods that seeks to go directly to the problem area without potency loss to treat the disease itself. When CBD/THC is introduced directly and gets trapped in the lungs, the data suggests it goes to work immediately making healthy lung tissue work more efficiently and some studies show improvement in damaged tissue as well. Cannabis Science sees CBD/THC therapy by IV as the best delivery method for patient treatment.Currently trading with a market cap of $157 million, the quarterly financials ending September 30 showed $3k in revenues, a net loss of $6.9m, $11k in cash, $1m in total assets, and $4.8m in total liabilities. While the financials remain weak and hard to justify its lofty market cap, momentum players are not focused on the financials and a rising tide is lifting all boats. With big volume coming into the stock and shorts scrambling to cover, a breakout looks to be in the cards for CBIS. 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.