CV Sciences Inc (OTCMKTS:CVSI) is Set to Pick a Direction

CV Sciences Inc (OTCMKTS:CVSI) is Set to Pick a Direction

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A stock that continues to drive interest despite very lackluster performance in a red hot market space is CV Sciences Inc (OTCMKTS:CVSI). We have seen scandal come and go and results from the CBD business continue to come in at a solid growth pace – the top line has jumped nearly 85% y/y. But shares have remained extremely rangebound in a chart pattern that is increasingly building towards some sort of directional outcome. Perhaps the stock might be spurred to move a bit more following reports of the expansion of the company’s operations, including a new production and warehouse facility.

According to the release, “The 45,500 square foot facility will expand the Company’s capacity for hemp CBD oil production, warehousing and fulfillment by more than 500 percent to meet growing retailer and consumer demand for PlusCBD Oil products. The facility, located in San Diego, is expected to be operational in the fourth quarter of 2019 and will support CV Sciences’ U.S. and international expansion opportunities.”

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 expansion of its operations with a new production and warehouse facility.

We’ve witnessed basically flat action in the stock over the past week, which matches the results over the past month and isn’t too far off from matching the past year – it’s dead flat over the past 11 months. That said, trading volume has been steady and the stock is clearly maintaining a strong following in terms of trader interest.

“Our recently announced U.S. hemp sourcing initiative combined with this facility and capacity expansion positions CV Sciences for continued rapid domestic growth, while ensuring we are well-positioned to capitalize on the international opportunities we are currently exploring,” said Joseph Dowling, Chief Executive Officer.

“The distribution of PlusCBD Oil products into national retailers in the Food, Drug and Mass (FDM) channel is growing significantly, yet we are still in the early stages of growth. Despite more than doubling the number of stores carrying our industry-leading products to 4,591 stores in the first six months of this year, we see a significant runway for additional growth, including increasing our domestic and international store count, as well as broadening product SKUs with our retail partners.”

Now commanding a market cap of $413M, 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 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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