One stock that has started to meaningfully fight back from a tough early August is CV Sciences Inc (OTCMKTS:CVSI). Shares of the stock were hammered earlier this month, knocking about 25% of the value out of CVSI in a couple days. But recent catalysts have helped the leading CBD play regain most of its lost ground, and shorts may now be vulnerable to helping squeeze it back into the longer-term trading range. Helping to further flesh out the story, the company just announced further expansion of its industry-dominating PlusCBD Oil brand into the specialty retail channel with The Vitamin Shoppe, Inc. (NYSE:VSI), which was recently acquired by Liberty Tax Inc. of Virginia Beach, VA in a deal valued at approximately $208 million.
According to the release, “CV Sciences’ expansion broadens distribution and availability of a broad assortment of the Company’s best-selling PlusCBD Oil products. Distribution across The Vitamin Shoppe’s national footprint includes both topical products, such as PlusCBD Oil Extra Strength Balm and recently launched PlusCBD Oil Roll-On, as well as PlusCBD Oil full spectrum hemp extracts including Gold Formula Softgels, Gold Formula Drops, and Total Plant Complex Sprays and Capsules. PlusCBD Oil products will be available beginning on September 22, 2019 at 383 Vitamin Shoppe stores in 30 U.S. states and Puerto Rico. This expansion brings CV Sciences’ PlusCBD Oil distribution to more than 5,300 retail locations throughout the U.S.”
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 into the specialty retail channel with The Vitamin Shoppe, Inc. (NYSE:VSI).
The chart shows 15% piled on for shareholders of the company during the trailing week. Furthermore, the listing has benefitted from a jump in recent trading volume to the tune of 40% over the long-run average.
“The Vitamin Shoppe is an ideal retail partner for CV Sciences as we continue our rapid expansion into national retailers,” said Joseph Dowling, Chief Executive Officer of CV Sciences. “Their customers are savvy shoppers focused on health and wellness with a keen eye for high quality, efficacious products that promote a healthy lifestyle. We are very pleased to kick off our partnership with The Vitamin Shoppe and bring PlusCBD Oil products to their discerning shoppers.”
Now commanding a market cap of $378M, CVSI has a significant war chest ($13.6M) of cash on the books, which compares with 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%. This is an exciting story, and we look forward to a follow-up chapter as events 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.