Cannabis Science Inc (OTCMKTS:CBIS) Is A Risky Investment
Boston, MA 03/27/2014 (medicalmarijuanareporter) – Cannabis Science Inc (OTCMKTS:CBIS) is focused on the discovery and development of innovative cannabinoid-based therapies which have the potential to address unmet medical needs and improve the lives of patients. Their products in broad terms are medical cannabinoid formulations using one or more cannabinoid compounds found in the cannabis plant with an immediate focus on cancer treatment. Some applications of cannabinoids have been well established in medical literature such as relieving nausea and stimulating appetite for patients suffering from AIDS and cancer. Other established uses include the easing of chronic pain and the reduction of muscle spasms associated with neuromuscular diseases like MS and spinal cord injuries.
The market opportunity for marijuana
The Federal government has recently authorized a study that would examine the potential of marijuana in the treatment of veterans suffering from post-traumatic stress disorder (PTSD). Cannabis Science Inc (OTCMKTS:CBIS) believes that this could be the precursor to more federal funding for medical marijuana research. The sales of legal cannabis were $1.43 billion in 2013 and are expected to grow by 64% to $2.34 billion in 2014. A recent study from the Pew Research Center showed that 52% of Americans favor the legalization of marijuana. You can imagine the potential growth garageband for pc download in the market when you consider that the illegal drug business is worth around $400 billion of which marijuana accounts for nearly half. Established legal producers like Cannabis Science could stand to benefit enormously as legalization gathers pace.
The investment thesis
The fundamentals of the company are pretty unimpressive and the latest financials available for the quarter ended September 30, 2013 show little cash in the bank. Revenue for the period was only $70,000 resulting in an operating loss of almost $1 million and a shareholder deficit of nearly $3 million. Like many penny stocks, this is a high risk investment and Cannabis Science Inc (OTCMKTS:CBIS) may not survive the going. However, if you have an appetite for this kind of investing risk and the belief in the future of cannabis producers, you could consider some exposure.