Cannabis Science Inc (OTCMKTS:CBIS) sell-off from record highs is a point of concern. Since the start of the year, the stock has lost nearly 60% of market value. The stock has failed to live up to expectations, even on touting its efforts in the development of cannabis products for treating various illnesses in our previous update.
However, a lot has changed from the time the broader cannabis space came under immense selling pressure. Cannabis Science has already served up a number of catalysts that if taken into perspective could have a significant impact on the stock’s direction of trade.
The stock is currently trading at the $0.05 level, seen as a critical support level. A drop followed by a close below the support level could see the stock plummeting to the $0.03 handle, seen as another support level. For the stock to be considered a bounce back play, after the recent sell-off, it will have to rise and close above the $0.08 level a crucial resistance level.
What Does Cannabis Science Do?
Cannabis Science is one of the biggest players in the lucrative and emerging cannabis business. The company claims to take advantage of its unique understanding of metabolic processes to come up with different cannabis-infused treatments, for addressing illnesses that current therapies cannot.
The company has also inked partnerships with other companies to advance the development of novel therapeutic approaches to address cancers, HIV/AIDs as well as other neurological conditions.
Why is the stock destined to Spike Higher?
After coming under pressure in the first quarter, things are starting to look up for Cannabis Science, and it could be a matter of time before it bottoms out. The Chief Executive Officer, Raymond Dabney, says they have strengthened the company’s brand as part of the current growth strategy.
Investments in the research and development of Cannabinoid based medicines, as well as the acquisition of manufacturing and distribution capabilities, should set the company on a path to accelerated growth in 2018.
According to Dabney, they have also strengthened revenue streams, which should allow the company to generate a significant amount of revenues after years of investments.
“Additionally, we are in the process of raising new capital to continue to fuel our growth strategy. All of these steps are intended to strengthen our Company and grow our revenues and profits,” said Mr. Dabney.
Bottle Inc. Acquisitions & Partnerships
Cannabis Science has completed the acquisition of Bottle It, Inc., which it expects to complement and accelerate its growth strategy as well as solidify its capabilities as a manufacturer. Based in Southern California, Bottle Inc. is a premier manufacturer of polyethylene terephthalate (PET) bottle and containers.
“Cannabis Science now has the in-house capacity to manufacture PET bottles and containers for Cannabis Science’s consumer products, as well as to manufacture bottles and containers for other manufactures of beverages, specialty waters, foods, cosmetics, and other products globally. This creates an important new revenue stream for Cannabis Science,” stated Mr. Dabney.
The acquisition of Bottle Inc. allows Cannabis Science to expand its footprint into a global market of plastic containers valued at $273 billion and expected to grow to $388 billion in 2020. The company will now be able to serve end-user industries like healthcare and bottled water.
Additionally, Cannabis Science has inked a partnership with Crown Baus Capital Corporation for the distribution of cannabis products in North America. The company is also planning additional acquisitions and alliances to complement its operational growth and maximize profitability.
The company has also expanded its Global Consortium through new and existing relationships with a view to coming up with new medicines and delivery mechanisms utilizing cannabis.
European Market Expansion
European expansion is also top on the agenda, as Cannabis Science continues to pursue opportunities for growth in emerging markets. Plans are already underway to establish a European Headquarters including lab facilities in Holland. Expansion into Europe should facilitate the company’s growth strategy as it moves to create the infrastructure to handle supply-chain logistics.
The company plans to establish a new hemp farm in the Netherlands as well as in Spain, to provide formulations for new products that to be distributed in the European market.
iCannabinoid Website Launch
The launch of a state-of-the-art technology social media and educational platform further underscores the company’s push to strengthen its revenue streams. Cannabis Science expects the iCannabinoid website to become a premier online platform for all things related to cannabis.
The website is designed to provide a platform where patient’s, advocate’s doctors, researcher’s parent’s lawyers can interact. The platform will also serve as a resource hub for people and support groups seeking alternative cannabinoid treatments for various critical ailments such as cancer and arthritis.
What Next For Cannabis Science
Cannabis Science has every reason to succeed as it continues to work on its growth strategy. The acquisition of Bottle Inc., the unveiling of a new website and expansion into Europe should strengthen its revenue stream key to generating free cash flow.
The recent bear run should come to an end, as soon as, investors take note of the company’s growth prospects given the recent developments.
Disclosure: We have no position in CBIS and have not been compensated for this article.