Cannabis Science (OTCMKTS:CBIS) has been one of the most frustrating names on the OTC markets for the past several years. CBIS is a company filled with so much hope and promise, yet management fails to deliver each and every time. To say shareholders are disappointed is an understatement. For those hoping 2016 would be any different, so far that isn't the case. The two press releases to start 2016 look to offer more of the same to beleaguered shareholders.To start 2016 off, CBIS issued forward guidance and an optimistic outlook for the New Year. CEO Raymond Dabney sounded like the cheerleader one would hope to see from a public company. He said:
"2015 was a great year of growth for our Company. We made a great deal of progress with our drug development, acquisition strategy, product roll out, and strategic partnership search. With that said, 2016 is looking to be an exciting year for Cannabis Science. We are kicking off the new year with new products already brought to market -- a huge head start over last year. We look forward to announcing all of our ground-breaking progress, step by step, along the way."
Here is what the company claims it is working on. CBIS is focused on three main formal drug targets, 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. Its pharmaceutical drug development program with partner ImmunoClin (IMCL) out of Europe is focused on delivering compliant GMP quality pre-clinical data, including cultivation of CBIS specific cannabis strains, formulation and manufacturing of clinical grade material to enable entry of CS-NEURO-1 and other cannabinoid based products into a Phase I human studies in Europe. In the State of California, Cannabis Science is in initial production and testing of its Pure Decarboxylated CO2 Oil (PDCO) and CBD, Sativa, and Indica Capsule products. In 2016, product improvements will continue to be made and these products will be rolled out to a wider array of dispensaries. Marketing efforts for the capsule products will be ramped up in 2016, as the company's products are now completely viable and have received outstanding feedback from consumers to date. Lastly, CBIS expects its IGXBIO, Genepro drug development program to be a major pharmaceutical win.Now while all of this sounds great, the company has failed to deliver on any of its past promises. The latest of which is the dividends that were promised to shareholders of record on December 31, 2010 and October 9, 2015. Now last time I checked it didn't take five years to issue a dividend. CBIS has cited FINRA as the impediment to getting the dividend issued and is hoping to resolve the issue. According to CBIS:
Company counsel continues to answer inquiries from FINRA as they arise. The regulatory process is moving forward, and the Company is doing everything it can to expedite the process.
So what are shareholders to do? Well we have to congratulate anyone that shorted CBIS. They have called this one correctly. While we generally despise short sellers, in this case management did all the work for them. Shareholders could score a major victory if new management is appointed. CEO Richard Dabney and COO Robert Kane have not done anything to instill confidence in its shareholder base so far. However, we feel change is unlikely to happen.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.
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It's sad how shareholders have suffered with CBIS under current management. However, we think the tide might be close to turning. Stay up to date with latest on CBIS by signing up for our email alerts on CBIS. We alert our subscribers as soon as we know something new. Don't miss out!
Disclosure: We have no position in CBIS either long or short. We have not been compensated for this article.
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