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Friday, November 27, 2020

Is the Breakout Underway in CV Sciences Inc (OTCMKTS:CVSI)?

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In our recent coverage of CV Sciences Inc (OTCMKTS:CVSI), we suggested that the stock was tracing out a bullish lateral correction that was “coming to a head” and would lead to a breakout to the upside before long. Well, it would appear that this breakout is underway as of last week’s action on Thursday and Friday. To help fuel the tape, the company just announced the appointment of Joerg Grasser as Chief Financial Officer, effective March 21, 2019.

According to the release, “Mr. Grasser brings to his new role more than 20 years of experience and an extensive background in accounting, finance, financial reporting and operations. He has served as Chief Accounting Officer of CV Sciences since December 2018. Prior to his role at CV Sciences, Mr. Grasser served as Controller of Ballast Point Brewing, a subsidiary of Constellation Brands, Inc. He also held senior finance positions with Sequenom, Inc. and Peregrine Semiconductor Corporation. Mr. Grasser began his career at KPMG LLP providing audit and IT advisory services, advancing to senior audit manager. He holds an MBA from the Keller Graduate School of Management, a BA from University of Regensburg, and is a Certified Public Accountant.”

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 the appointment of Joerg Grasser as Chief Financial Officer, effective March 21, 2019.

We’ve witnessed 19% added to share values of the stock over the past week of action. In addition, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 60% beyond what we have been seeing over the larger time frame.

“Joerg’s extensive background in accounting and finance along with his strong leadership skills make him the ideal CFO for CV Sciences as we build upon our leadership talent, capabilities, and systems to support future growth,” said Joseph Dowling, Chief Executive Officer. “In Joerg’s short tenure at the Company, he has been an instrumental addition to our team, driving excellence in our financial reporting and strategic counsel to all of our corporate and financial decisions. We are very pleased to have him accept the additional responsibilities of CFO and we look forward to capitalizing on the rapidly growing opportunity that lies ahead.”

Earning a current market cap value of $524.92M, CVSI has a significant war chest ($12.9M) of cash on the books, which must be weighed relative to about $4.4M 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 $48.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 96.4%. 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.

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