Why CV Sciences Inc (OTCMKTS:CVSI) Could be Ready to Celebrate

Why CV Sciences Inc (OTCMKTS:CVSI) Could be Ready to Celebrate

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Shares of CV Sciences Inc (OTCMKTS:CVSI) have finally started to breakout to the upside in recent weeks. But that movement has hit a consolidative period where the rubber really meets the road. The stock is now trading well above its 50- and 200-day simple moving averages, both of which are rising. To further flesh out the story, the company just announced further expansion of its industry-dominating brand, PlusCBD Oil.

According to the release, “As of March 31, 2019, PlusCBD Oil branded products are available in 3,308 retail stores, up 48% from 2,238 retail stores as of December 31, 2018. The expansion includes broadening distribution of its best-selling topical, PlusCBD Oil Extra Strength Balm, into the Food, Drug and Mass (FDM) channel, including programs with leading national retailers.”

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 further expansion of its industry-dominating brand, PlusCBD Oil.

Traders will note 21% tacked on to share pricing for the name in the past month. What’s more, the listing has seen a growing influx of trading interest, with the stock’s recent average trading volume running 44% above the average volume levels in play in this stock over the longer term.

“The passage of the 2018 Farm Bill has accelerated our business development activities and expanded our distribution to new food, drug, mass merchandise retailers,” said Joseph Dowling, Chief Executive Officer. “We are at an important stage in the development of the hemp-based CBD market, and the company is well-positioned to capitalize on both growing consumer demand and the benefit of enhanced regulation that supports and ensures the safest and highest quality hemp-based CBD products for consumers.”

At this time, carrying a capital value in the market of $526.18M, CVSI has a significant war chest ($12.9M) of cash on the books, which compares with 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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