As far as cannabis companies are concerned, CV Sciences Inc (OTCMKTS:CVSI) has long been regarded as one of the most innovative ones. The CBD manufacturer and supplier have also suffered from the turmoil caused by the coronavirus pandemic, and that was reflected in its first-quarter results.
The financial results were declared on May 14, and CV Sciences reported revenues of $8.3 million, which was a drop of as much as 45% year on year. In this regard, it should be noted that earlier on in the year, CV Sciences had revised its estimates in light of the coronavirus pandemic and projected Q1 revenues to be in the $6 million to $8 million range.
The Chief Executive Officer of the company Joseph Dowling blamed three major factors behind the decline in revenues. He cited the coronavirus pandemic, heightened competition, and the regulatory uncertainty around CBD as the main reasons. That being said, he also revealed that CV Sciences saved as much as $10 million through layoffs and salary reduction in light of the coronavirus crisis.
While the company’s performance was disappointing, the market certainly does not seem to think so. Over the course of the past two weeks, the CV Sciences stock has rallied by as much as 240% and has emerged as one of the cannabis-related stocks to watch for enterprising investors.
However, the company did receive a major boost last week, when the United States Patent and Trademark Office granted the company a Notice of Issuance with regards to a patent. The patent is related to the treatment of smokeless tobacco addiction by way of CBD and nicotine-based pharmaceutical products. It is a significant development for the company and one that could help CV Sciences in gaining a foothold in a rapidly growing market.
The rally over the course of the past two weeks in the stock has been quite remarkable, and it is likely that the stock is going to be on the radar of many investors over the coming days. Sign up below for continuing coverage and break-out stock alerts.