CANNAINVESTOR Magazine August / September 2017 | Page 221

The management team and their experience should be found on a company's website on their Investor Relations Page. If you find it difficult to locate this information, there is a reason why - the company is hiding it!

OUTSTANDING SHARES

A good cannabis company is mindful of how many shares of stock are outstanding. Please look at other companies in the same industry with similar revenues and compare outstanding shares. The number of shares outstanding is listed on a company's balance sheet as "Capital Stock" and is reported on the company's quarterly filings with the US Securities and Exchange Commission. The number of shares outstanding can also be found in the capital section of a company's annual report.

Outstanding shares refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.” The number of outstanding shares is used in calculating key metrics such as a company’s market capitalization, as well as its earnings per share (EPS) and cash flow per share (CFPS).

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