Why CV Sciences Inc (OTCMKTS:CVSI) Shares Spot Silver Lining

Why CV Sciences Inc (OTCMKTS:CVSI) Shares Spot Silver Lining

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The potential bottom continues to come into place in the hemp, cannabis, and CBD complex, and CV Sciences Inc (OTCMKTS:CVSI) shareholders have benefitted. We previewed this in our last piece on the stock (see here). But the company has a strong catalyst to help that process this week as well: CVSI just announced further expansion of its industry-dominating PlusCBD Oil brand to a total of 515 The Vitamin Shoppe locations in 36 U.S. states and Puerto Rico.

According to the release, “CV Sciences’ expansion increases 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.”

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 to a total of 515 The Vitamin Shoppe locations in 36 U.S. states and Puerto Rico.

Recent action has seen 7% piled on for shareholders of the listing during the trailing week. Moreover, the listing has registered increased average transaction volume recently, with the past month seeing 64% beyond what we have been seeing over the larger time frame.

“Following a successful initial rollout to nearly 400 The Vitamin Shoppe locations, we are pleased to further expand our partnership to make PlusCBD products available to more customers of The Vitamin Shoppe,” said Joseph Dowling, Chief Executive Officer of CV Sciences.  “We look forward to continued expansion with The Vitamin Shoppe as their customers seek high quality, efficacious CBD hemp extract products that promote a healthy lifestyle.”

Currently trading at a market capitalization of $208M, CVSI has a significant war chest ($15.7M) of cash on the books, which must be weighed relative to about $11.8M 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 $59.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 36.5%. This may be a very interesting story and we will look forward to updating it again soon. 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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