There can be no question about it: CV Sciences Inc (OTCMKTS:CVSI) is back on the map as a major momentum favorite in the cannabis and MJ space for OTC traders. The stock has been ripping higher over the past couple week, sparked by a few new catalysts. However, the most recent news certainly ices the cake.
Specifically, the company just announced today that it entered into a binding and effective settlement agreement on May 31, 2018 with the Securities and Exchange Commission to fully and finally resolve all claims and matters related to the SEC’s enforcement action against the Company. According to the release, “Michael J. Mona, Jr. concurrently settled all claims brought against him personally in this SEC matter. As part of the settlement, the Company and Mr. Mona neither admitted nor denied any wrongdoing.”
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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We’ve witnessed just shy of 160% added to share values of the listing over the past month of action. In addition, the listing has registered increased average transaction volume recently, with the past month seeing more than 150% beyond its prior sustained average level. This should not be overlooked with a float in play that’s extremely small – at just 20 million shares.
“We are very pleased to have put this matter behind us,” said Joseph Dowling, the Company’s Chief Executive Officer. “As we have communicated to the market, we vigorously defended and opposed this matter from the outset. At this point, we believe it is in the best interests of CV Sciences and its stockholders to resolve the matter and continue to capitalize on the market acceptance of our market-leading consumer products and to advance our novel drug development program in the treatment of smokeless tobacco use and addiction.”
“The company and the board are eternally grateful for the service of Mike Mona, as our founder, visionary and leader since the company’s inception,” continued Mr. Dowling. “The company has grown substantially and has flourished under Mr. Mona’s leadership. His presence at the company, as well as his work with our suppliers and vendors, will continue as he transitions to his new role as a company employee.”
At this time, carrying a capital value in the market of $138.5M, CVSI has a significant war chest ($3.9M) of cash on the books, which is balanced by about $390K in total current liabilities. CVSI is pulling in trailing 12-month revenues of $25M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 114.4%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CVSI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CVSI, either long or short, and we have not been compensated for this article.