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Sunday, October 25, 2020

CV Sciences Inc (OTCMKTS:CVSI) Gets Back Into Gear

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CV Sciences Inc (OTCMKTS:CVSI) is a penny stock player in the rapidly growing space of synthetic cannabidiol. CVSI stock blasted higher into the November 8 election, but then “Christmas Tree’d” down the chart and settled back where it had started. However, the stock has gotten back into gear of late, and we thought it was time for another look.

The chart shows 80% added to share values of the stock over the past month of action. This is emblematic of the stock. CVSI stock has a history of dramatic rallies. Moreover, the name has witnessed a pop in interest, as transaction volume levels have recently pushed just shy of 110% beyond what we have been seeing over the larger time frame. This should not be overlooked with the stock trading on a float that is tiny at just 9.1M shares. Traders should not overlook this combination, as a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders. Since we last covered the name, the stock has moved 55.1%.

CV Sciences Inc (OTCMKTS:CVSI) frames itself as a life science company, focuses on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD).

CVSI operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors, including nutraceutical, beauty care, specialty foods, and vape.

Following the CanX Acquisition in December 2015, CV Sciences commenced its preclinical drug development program during the second quarter of 2016. The Company’s drug development efforts include pursuing synthetic-based Cannabidiol drug candidates in areas that have the potential to provide significant improvements in therapeutic patient treatments with sizable addressable markets.

The company was formerly known as CannaVEST Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.

CV Sciences Inc is led by Michael J. Mona, JR. founder of CV Sciences, Mr. Mona possesses over 30 years of senior management experience in a range of industries including real estate/construction, industrial farming, chemical processing and consumer products. Mr. Mona is a recognized industry leader in hemp farming operations and chemical extraction and has established a global supply chain of hemp-derived products.

According to company materials, “CV Sciences, Inc. (CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.”

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The company has also pushed for recent attention by highlighting MLB’s recent ban on smokeless chewing tobacco for new players. If you missed the news, beginning this upcoming season, cities that include San Francisco, Boston, and Los Angeles will ban smokeless tobacco in the big-league ballparks and other sports venues.

The city councils of Chicago and New York recently approved similar prohibitions on smokeless tobacco for Wrigley Field, U.S. Cellular Field, Citi Field and Yankee Stadium. Michael Mona, Jr., President and CEO of CV Sciences commented, “We applaud baseball’s new labor agreement that prohibits all new players from using smokeless tobacco, like chew, dip and snuff. The recent death of former San Diego Padres Hall of Famer Tony Gwynn has highlighted the seriousness of the issue.”

“Mr. Gwynn attributed his long struggle with salivary gland cancer directly to his many years of chewing tobacco. Curt Schilling, former Boston Red Sox pitcher revealed his diagnosis of oral cancer which he stated was ‘without a doubt, unquestionably’ due to decades of chewing tobacco. We strongly believe that highlighting these examples are critical as we at CV Sciences are addressing a massive unmet medical need in the treatment of smokeless tobacco addiction. Currently, there are no FDA-approved drugs to treat this widespread and deadly addiction. Our lead drug candidate, CVSI-007, is aimed at addressing this huge unmet need. We estimate that the current treatment market in the U.S. alone is greater than $2 billion.”

Earning a current market cap value of $28.7M, CVSI has a chunk ($847K) of cash on the books, which must be weighed relative to about $2M in total current liabilities. One should also note that debt has been growing over recent quarters. CVSI is pulling in trailing 12-month revenues of $10.1M. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -29.2%. We will update the story again soon as developments transpire. For continuing coverage on shares of CVSI stock and other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

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