Why CV Sciences Inc (OTCMKTS:CVSI) May Have Fireworks Ahead

Why CV Sciences Inc (OTCMKTS:CVSI) May Have Fireworks Ahead

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The $4/share level has become an extremely defining price point on the chart of CV Sciences Inc (OTCMKTS:CVSI) in recent action. Shares of the stock have simply crawled along it, with, we can probably assume, a broad-based transition of ownership from sellers to new investors moving in and accumulating supply at the level. Typically, when we see this much sideways consolidation, some fireworks aren’t too far away. To further flesh out the story, the company just announced further expansion of its industry-dominating PlusCBD Oil brand with The Kroger Co.

According to the release, “CV Sciences’ expansion broadens distribution and availability of the Company’s best-selling PlusCBD Oil Original and Extra Strength Balms, and recently launched PlusCBD Oil Roll-Ons to more than 400 Kroger stores in five new states, including Georgia, Montana, Texas, Utah and Virginia.  This expansion brings CV Sciences’ PlusCBD Oil distribution with Kroger to 22 states and 1,350 stores across many of Kroger’s retail banners, including Kroger, Dillons, Fry’s, Fred Meyer, King Sooper, Mariano’s, Pick ‘n Save, QFC and Smiths.”

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 PlusCBD Oil brand with The Kroger Co.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week, as noted above. One continues to feel that some sort of pattern resolution is forthcoming. But the stock continues to trace things out.

“We are pleased to further grow our distribution with Kroger and increase the availability of PlusCBD™ Oil products to more Kroger shoppers across the U.S.,” said Joseph Dowling, Chief Executive Officer.  “We see significant opportunities to further expand our partnership into more Kroger retail outlets with additional product SKUs as demand for high quality, safe and effective hemp CBD products continues to increase with broader market acceptance.”

Now commanding a market cap of $401M, CVSI has a significant war chest ($13.6M) of cash on the books, which is balanced by 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%. You can bet we will update this one again as new information comes into view. 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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