Cannabis Science Inc (OTCMKTS:CBIS) could as well be turning the page after underperforming for the better part of the year. After plunging by more than 60% from record highs, the stock has started showing signs of bottoming out. A high turnover of traded shares, in recent weeks, has helped support bounce back notions from one-year lows.
Just like a good number of stocks in the cannabis sector, Cannabis Science has felt the full wrath of short sellers, the stock has traded in a steep downtrend for the better part of the year. Bouncebacks in recent months have emerged as sell-off opportunity from, which sellers have come in and continued to push the stock lower.
The stock has once again bounced back from the $0.03 handle to the $0.04 mark, waiting to see if the upward momentum has what it takes to support further upswings. For the stock to emerge as an exciting investment play on a risk-reward ratio, it first needs to rise and stabilize above the $0.06 mark.
A rally followed by a close above the $0.06 mark would open the door for more buyers to come in and push the stock to the $0.08 mark, the next substantial resistance level. Below the $0.06 mark, the stock remains susceptible to further declines given that short sellers remain in control.
About Cannabis Science
Cannabis Science is a cannabis-focused company that develops produces and commercializes cannabinoid infused products in the U.S. The company is currently working on novel treatments for autism as well as blood pressure, cancer among other illnesses.
A spike in share price, as well as trading volume, come on Cannabis Science confirming a receipt for the issuance of a new patent of neurobehavioral disorders as well as anxiety disorders and PTSD. The invention relates to a composition that utilizes various Cannabis plant extracts made up of Cannabis among other constituents.
The new patent means the company is well positioned to enhance the development of Cannabis products for the treatment of crucial Neurobehavioral disorders. Such therapies would allow the company to address a significant audience given that there are over 50 million people with chronic sleep disorders as well as 20 million people with occasional sleep disorders.
“The Company is making various supplement combinations with CBN targeting Sleep Disorder and PTSD. The Company will aggressively license partners to develop the supplements for mass distribution with the right fit larger and smaller organizations, including pharmaceutical firms, biotech development firms, and distribution/sales organizations,” Cannabis Science in a statement.
Cannabis Science has already opened discussions with the U.S and Canada as it looks to fuel its international drug development and economic development programs.
Research And Development Plans
The issuance of the patent comes months after Cannabis Science announced the launch of a new 40-acre industrial hemp research and development project in Nevada. The group has already commenced industrial hemp research operations on the property.
Research and development work at the facility are focusing on cancer, PTSD as well as chronic pain. The company has also inked strategic partnerships to enhance research and development operations.
The company has already unveiled Cannabis Science Global Consortium a framework and platform for cooperating with stakeholders worldwide. The consortium seeks to link universities, foundations as well as corporations and individuals to share research ideas on the use of cannabis for medicinal purposes.
“The research data collected will primarily be used for FDA and other clinical studies by creating a pharmaceutical drug development plan for critical ailments. Other objectives for research and development include wholesale distribution to physicians and licensed wholesale manufacturers.” Cannabis Science in a statement.
Separately, Cannabis Science has confirmed the appointment of Dr. Joe Wilson to the International Government Affairs Board. He joins the company with over 20 years of experience in Information Technology and risk management.
What Next For Cannabis Science
Cannabis Science is not yet out of trouble despite the recent resurgence from one-year lows. The stock is still engulfed in a long-term bear trend, which affirms the fact that short sellers are still in firm control. For the stock to continue powering high, the company needs to serve groundbreaking catalysts affirming the company’s growth prospects.
Investors sentiments in the stock are still low something that could curtail further movements on the upside. However, rally followed by a close above the $0.06 mark should reaffirm Cannabis Science bounce back play credentials.
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Disclosure: We have no position in CBIS and have not been compensated for this article.