Among the most interesting and volatile stocks on the OTC, CV Sciences Inc (OTCMKTS:CVSI) has been at the center of attention of late due to accusations and filed complaints of possible fraud related to IP issues. The company has denied any and all wrongdoing and pledged to fight back. And, in an effort to battle back, the company just released an update, stating that the company would like to “assure our shareholders that we are keenly aware of recent market activity and certain disinformation disseminated by persons holding short positions in our stock.”
“As many of our shareholders are aware, our Company has been victimized by campaigns run by short sellers in order to depress our stock price, so they could make financial windfalls,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. “We are also aware that at least one such group has boasted on social media platforms about its financial returns since their release of misleading information regarding the Company’s patent prosecution and drug development efforts.”
CV Sciences Inc (OTCMKTS:CVSI) bills 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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As noted above, the company reminded shareholders in its update that the company has recently achieved record-breaking Q2 2018 financial results including revenues of $12.3 million, net income of $3.2 million and adjusted EBITDA of $3.8 million, and record-breaking first half 2018 financial results including revenues of $20.4 million, net income of $3.8 million and adjusted EBITDA of $5.6 million.
Note, the stock has been strong overall despite the volatility, tallying 44% in share price gains in the past month. Moreover, the name has seen interest climb, with an increase in recent trading volume of just under 300% above the average volume levels in play in this stock over the longer term.
Mr. Dowling continued, “While we don’t normally comment on our stock price or performance, it is important to stress that nothing has fundamentally changed in our business. We continue to deliver solid financial results, and we remain very confident in our prospects.”
Now commanding a market cap of $369.9M, CVSI has a significant war chest ($7.2M) of cash on the books, which stands against about $3M in total current liabilities. CVSI is pulling in trailing 12-month revenues of $33.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 202.5%. You can bet we will update this one again as new information comes into view. 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.