As the reader will no doubt be aware, CV Sciences Inc (OTCMKTS:CVSI) has been smacked around for the past few weeks following shortseller Andrew Left’s jab at the company by way of a Citron Research note claiming the company has been less-than-adequately-forthcoming about the status of some of its IP with the USPTO. However, we would ask the question: What does that really matter for a stock that has been running on sheer sales growth?
In fact, the weight the company faces now is probably more about PR and potential legal fees as the law firms swarm like bees around a bucket of honey following the Citron note. What the company needs is a venue to shift attention back to what it does best. Perhaps that is on the way next week given that CVSI just announced that its industry-dominating brand of finished products, PlusCBD Oil will be exhibiting at Natural Products Expo East on September 12-15, “in Baltimore, Maryland. Produced by New Hope Network, Natural Products Expo East is the leading trade show in the natural, organic and healthy products industry, attracting over 28,000 industry professionals and over 1,500 exhibits to the Baltimore Convention Center.”
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 will be presenting its wares at a conference next week, which could possibly shift some attention back to its strength of product and away from the swarming of lawfirms looking to feast on their decline following the Citron note. In all, recent action has seen just shy of -20% stripped out of share prices for the stock during the past month.
In addition, CVSI has seen volume climb, with an increase in recent trading volume of topping 290% over the long run average.
According to the company’s most recent release, “PlusCBD Oil, the #1 brand of hemp CBD products in the natural channel according to SPINS scan data, has achieved nationwide success since the launch of its brand of dietary supplements in 2014. The brand continues its rapid retail expansion in the natural products industry, with its products currently being sold in approximately 1950 independent health food stores and counting.”
Currently trading at a market capitalization of $301M, CVSI has a significant war chest ($7.2M) of cash on the books, which must be weighed relative to 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%. We will update the story again soon as developments 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.