As expected, after the “high” faded off from Tuesday’s legalized marijuana bills passing, the one with the best longer term gains has been Cannabis Science Inc. (CBIS). Even after every nationwide media outlet has provided their two cents on what Colorado and Washington state’s recreational use laws means, CBIS stock proved most fortunate surging in today’s trading session with volume unseen since April. It is again looking very much like a run to break the 0.245 high set on the last day of February is gaining more believers ending Thursday as the second most traded OTC stock.
This week’s win is only the beginning! Check out the CBIS stock chart year-to-date: click here. Although legalized cannabis and marijuana businesses have a long road ahead after the voting results Tuesday from Colorado and Washington state, with the illegal market estimated at $16 billion nationally, the wait may be worth it for those long on CBIS stock..
Click HERE To Make Sure You Don’t Miss Any Of Our Breaking Alerts!
CBIS Stock Chart
Market Cap: 47.73M
Close: 0.069, up 0.0151 (28.01%)
Dollar Volume: $2,214,039
Average Trade Size: 18,873
Issued and Outstanding: 691,770,573
Looking for Hot Penny Stocks?
Click here and get Alerts on the Best Penny Stocks FREE
While Tuesday’s vote was a huge win for advocacy, state governments are now in a “Catch-22″ scenario having to find a way to make marijuana legal while it is still considered illegal to possess and/or sell under federal law. Retraining the thinking behind laws that were instituted back in the 40’s and 50’s, marijuana legalization advocates are now one step closer to seeing the acceptance of medical marijuana initiatives across the nation whereby expectations are that legal marijuana will be a reality in more places across America from this historic event.
A bit of history about Cannabis Science which gained as much as 1,300%, from the start of the year up until it set its 52 week high on February 29, and is still up 294% since our alert was issued:
• On May 7, 2009 the Company common shares commenced trading under the new stock symbol OTCBB: CBIS.
• On May 8, 2009, the Company signed a Share Purchase Agreement to acquire Rockbrook, Inc., a Colorado medical cannabis dispensary. Due to regulatory changes that prevented a non-Colorado resident from owning a dispensary within the state, the Company signed a mutual termination agreement with Rockbrook on July 27, 2010 to retroactively cancel the acquisition.
• On April 27, 2011, the Company was advised by the principal of Rockbrook, Inc. that the current licensing agreement was no longer in effect and that a new license agreement would be signed once new terms could be agreed upon. Despite this notification from Rockbrook, Inc., a legally signed license agreement is still in effect between the Company and Rockbrook. As of June 30, 2012, the Company is re-assessing the license agreement with Rockbrook and how to resolve the dispute to move forward in a cohesive arrangement with the other license agreements and acquisitions the Company is working on.
• On February 9, 2012, the Company signed a license agreement with Apothecary Genetics Investments LLC. to produce several Cannabis Science Brand Formulations for the California medical cannabis market. As well, Apothecary will provide research and development facilities with full circle operations including a California laboratory facility for internal research and development, along with 16 unique genetic strains specifically generated and maintained by a cancer survivor who recognizes the importance of proper growth and breeding.
In consideration of this agreement, on January 1, 2012, the Company entered into a 25 year management agreement with Dr. Mohammad Afaneh to act as Chief Operating Officer of Cannabis Science, Inc. Dr. Afaneh received 28,500,000 common shares valued at $299,250 under this agreement. In addition, on February 10, 2012, Dr. Afaneh signed a management bonus agreement where he received 5,000,000 common shares valued at $185,000 as a signing bonus for entering into his management agreement. In addition, on January 1, 2012, the Company entered into a 25 year management agreement with Bret Bogue to act as Director of Horticulture and head of research and development. Mr. Bogue received 28,500,000 common shares valued at $299,250 under this agreement. In addition, on February 10, 2012, Mr. Bogue signed a management bonus agreement where he received 5,000,000 common shares valued at $185,000 as a signing bonus for entering into his management agreement. These common shares were issued on April 24, 2012.
• On February 9, 2012, the Company acquired GGECO University, Inc. (“GGECO”), an online video-based medical cannabis education system, offering courses dealing with medical cannabis law, the benefits of medical marijuana, cooking, horticulture, and bud tending. Following the university’s name change to Cannabis Science University, the Company hopes to use this platform to educate the general public, patients, and even those who have already been involved in the medical cannabis industry on the medical benefits of cannabis, how it is grown, how to use it safely, and the many applications or ways to administer the medication. In consideration of this agreement, the Company issued 25,000,000 common shares with a fair market value of $935,000 to the principals of GGECO and assumed net liabilities of $24,686. The preliminary valuation of GGECO acquisition totaling $984,686 has been allocated to intangibles as at June 30, 2012. These common shares were issued on April 24, 2012.
• On March 21, 2012, the Company acquired Cannabis Consulting Inc. (“CCI Group”), which consists of a group of businesses operated by Robert J. Kane, including: all contracted rights, properties, patents, trademarks, and distribution rights and agreements pertaining to Cannabis Consulting Inc., Robert Kane Partners, Kaneabis Consulting, Kaneabis Fund, Kaneabis Report, and Kaneabis Radio. In conjunction with the acquisitions, Robert Kane was promoted to V.P. of Investor Relations for the Company. Consideration paid for the CCI Group was 1,000,000 common shares to be issued to the principal, Mr. Robert Kane with a fair market value of $147,000, in addition to 250,000 free-trading common shares for services rendered with a fair market value of $22,500. The preliminary valuation of the CCI Group acquisition totaling $147,000 has been allocated to intangibles as at June 30, 2012.
• On June 1, 2012, the Company signed a Share Purchase Agreement to acquire Goldsmith Health Care, Ltd. (“GHC”), a Nevada company. GHC operates Trimcare (www.trimcare.com), a health care facility which specializes in weight-loss programs, cosmetic procedures, nutritional supplements, hormone replacement therapy, along with other therapeutic treatments. The Company paid GHC $155,000 and 5,000,000 common shares, including $5,000 for the first month’s license fees as consideration for the purchase. Total consideration, including the fair market value of shares issued for the acquisition of GHC is $457,500. Other monthly consideration is due if additional locations are opened under the Trimcare brand.
• On July 31, 2012, Cannabis Science, Inc. filed a lawsuit against Ivan Goldsmith, M.D., Mona Dever-Goldsmith, and a Nevada professional corporation, Goldsmith Health Care, Ltd. (collectively, “Defendants”). Goldsmith Health Care, Ltd. currently operates under the trade name TrimCare. This action arises out of a failure of the parties to consummate a transaction which was memorialized through the executed share purchase agreement signed on June 1, 2012. Despite the Company’s transferring of the necessary purchase price (a combination of $155,000 and 5,000,000 shares of stock in the Company), Dr. Ivan Goldsmith and his company refused to consummate the transaction.
The lawsuit seeks compensatory and consequential damages, as well as injunctive and declaratory relief. The lawsuit further seeks punitive damages against Mrs. Dever-Goldsmith for the intentional interference of a third party contract.
Click here to see an interview with Dr. Robert J. Melamede, President & C.E.O. of Cannabis Science.
About CBIS Stock
Cannabis Science, Inc. is at the forefront of medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products. In sum, we are dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.
Click here to view the SEC filings for CBIS.
Bottom Line: CBIS is one of the most loved penny stocks of all the marijuana focused companies affected by the legalization and should be on everyone’s list already. After seeing CBIS stock run from the beginning of the year for 10-bagger gains, it’s impossible to eliminate the possibility that Tuesday’s vote is the end of a massive push to have cannabis infused products available for those seeking treatment from the medicinal values the plant naturally provides.
Here is your opportunity to subscribe to the Most Read Penny Stock Newsletter
If You Can’t Make Money With Us, You Shouldn’t Be Trading Penny Stocks
(We are 100% Anti-Spam and will never rent or sell your information)Share