CV Sciences Inc (OTCMKTS:CVSI): Breakout? or Home on the Trading Range?

CV Sciences Inc (OTCMKTS:CVSI): Breakout? or Home on the Trading Range?

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The lateral consolidation continues to fix itself into place for CV Sciences Inc (OTCMKTS:CVSI) with the better part of the past year now tracing out the boundaries of a sideways corrective pattern that has possibly built up the prepotency to unleash a follow-on leg of the larger bullish trend. To further flesh out the story, the company just announced that its industry-dominating PlusCBD Oil products were used in the first study to date examining the clinical benefit of CBD for the treatment of Post-Traumatic Stress Disorder (PTSD).

According to the release, “The study, published in The Journal of Alternative and Complementary Medicine in April 2019, examined the effect of oral CBD administration on symptoms of PTSD in a series of 11 adult patients at an outpatient psychiatry clinic. CV Sciences provided various PlusCBD Oil products for the study; delivery systems and usage were determined by patient and provider preference. The published study can be viewed at the following link: Cannabidiol in the Treatment of Post-Traumatic Stress Disorder: A Case Series. CV Sciences was not involved in the data collection, data interpretation, the preparation of the article, or the decision to submit for publication.”

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 that its industry-dominating PlusCBD Oil products were used in the first study to date examining the clinical benefit of CBD for the treatment of Post-Traumatic Stress Disorder (PTSD).

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -13%. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 21% above the average volume levels in play in this stock over the longer term.

“CV Sciences continued commitment to furthering scientific research allows us to better understand the benefits of CBD or a wide range of indications,” said Joseph Dowling, Chief Executive Officer.  “After more than 80 years of prohibition, hemp CBD research has been severely hindered, but with the passage of the 2018 Farm Bill, we are beginning to understand the clinical benefits of CBD through scientific rigor.  While we recognize that dietary supplements can’t be marketed for treating disease, we are pleased to support scientific progress by providing our PlusCBD Oil™ products to researchers and look forward to continued research on the clinical benefits of CBD for patients with PTSD and other indications.”

Currently trading at a market capitalization of $486.91M, CVSI has a significant war chest ($13.6M) of cash on the books, which stands against about $11.3M 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 $55.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 84.8%. We will update the story again as soon as further details emerge. 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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