Why CV Sciences Inc (OTCMKTS:CVSI) Continues to Measure Up Well

Why CV Sciences Inc (OTCMKTS:CVSI) Continues to Measure Up Well

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Among the winners from the Farm Bill, CV Sciences Inc (OTCMKTS:CVSI) distinguishes itself as a stock that hasn’t really given everything back and can easily lay claim to the fruits of that narrative. And this is no mean feat. Most similar plays have actually declined off the news pop. To continue that story, the company just announced its certification by the US Hemp Authority Guidance Program.

According to the release, “Established in 2018, the US Hemp Authority Certified program was developed by the US Hemp Roundtable, and is designed specifically to educate hemp farmers and hemp finished product producers in FDA Current Good Manufacturing Practices (cGMP) and Good Agricultural Practices (GAP) to ensure that consistent quality is achieved. The U.S. Hemp Authority™ Certification Program is administered by experienced quality assurance and verification professionals from industry-leading food and agricultural companies.”

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, CVSI just announced its certification by the US Hemp Authority Guidance Program. We’ve witnessed 10% piled on for shareholders of the name during the trailing week. In addition, the listing has registered increased average transaction volume recently, with the past month seeing 0% over the long run average.

“Consumer interest and demand for industrial hemp products is growing rapidly and we believe consumers are entitled to full transparency with respect to product quality, safety and consistency. By completing the US Hemp Authority’s rigorous certification process, consumers can continue to trust in CV Sciences’ commitment to the highest operating and production standards,” stated Michael J. Mona, III, co-founder, President and Chief Operating Officer at CV Sciences.

“This landmark certification provides additional assurance to our customers that we are focused on continuous improvement, customer trust and satisfaction.”

Earning a current market cap value of $444.89M, CVSI has a significant war chest ($11M) 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 $41.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 143.3%. As more color becomes clear on the name, we will review the situation and update our take. 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.

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