CV Sciences Inc(OTCMKTS:CVSI) has had several days to remember; the stock was moving up fast and had just made new highs of $9.22 a share when Citreon research (the face of noted short-seller, Andrew Left) released a tweet alleging that CV Sciences’ management misrepresented the status of one of its key patents. According to Citron Research, the Company failed to disclose a rejected patent that the Company “continue[d] to hype.”
The Citreon Research report and the lawsuits that followed have decimated the share price of CVSI as the Company tries to fight back.
CV Sciences Inc(OTCMKTS:CVSI) stated in an 8k dated August 28 “CV Sciences, Inc. has been informed of a class action lawsuit filed against the Company that alleges violations of federal securities laws. The Company disputes the allegations in the complaint and will vigorously defend this lawsuit. Both the Citron report and the newly filed lawsuit allege, in pertinent part, that the Company violated securities laws by failing to disclose that it had received notice from the United States Patent and Trademark Office (USPTO) that its pending patent application, U.S. Patent Application No. 15/426,617 (the ‘617 Application), had been “finally rejected” by the USPTO. The complaint draws the conclusion that this notice from the USPTO terminated the Company’s patent application, and that the Company’s efforts to obtain patent protection for the inventions disclosed in the ‘617 Application have therefore failed.
“We believe that any claims alleging violations of securities laws by the Company are without merit and we intend to vigorously defend our position,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. The conclusions in the complaint and in the ‘report’ by Citron Research are outright false, and demonstrate either an ignorance, a disregard, or both, of the basics of patent prosecution,” stated Mr. Dowling. “A ‘final rejection’ in the context of patent prosecution is anything but final. It by no means indicates that the applicant has failed in its efforts to obtain an issued patent.” We will continue to prosecute the ‘617 Application and plan to file and prosecute several more applications related to the inventions described in the ‘617 Application.”
CV Sciences Inc(OTCMKTS: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 focused on manufacturing, marketing and selling plant-based CBD products (PlusCBD Oil(TM)) to a range of market sectors. The largest segment is the consumer products business segment, which is in charge of manufacturing and selling the company’s CBD brand PlusCBD™ CV Sciences, Inc. has primary offices and facilities in San Diego, California and Las Vegas, Nevada.
A big party of CVSI success is PlusCBD Oil™, the #1 brand of hemp-derived CBD products in the natural channel according to SPINS scan data, has achieved immense success since the launch of its brand of dietary supplements in 2014. This brand is currently being sold in approximately 1300 health food stores and continues to grow its shelf presence in various retail outlets across the country.
the huge success of PlusCBD Oil™ has resulted in massive sales for CVSI: on August 1, CVSI announced Second Quarter 2018 Financial Results. The Company announced record sales of $12,349,000 an increase of 203% compared to Q2 2017. CVSI also increased retail store count to 1,968 natural and organic health food stores as of June 30, 2018, representing an 11.1% sequential increase over the Company’s retail store count for the first quarter of 2018. PlusCBD™ product line is now positioned for mainstream acceptance and expanded distribution as the health and wellness markets continue to embrace CBD commercialization and standardization.
To Find out the inside Scoop on CVSI Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
In July the Company said it has submitted its application to list the Company’s common stock in the U.S. on the Nasdaq Capital Market. Acceptance for listing the Company’s shares is subject to approval based on several factors including satisfaction of minimum listing requirements for the Nasdaq Capital Market. The Company intends to satisfy all of the applicable listing requirements, however, there is no assurance that its application will be approved. During the Nasdaq review process, the Company’s common stock will continue to trade in the U.S. on the OTC under its current symbol, CVSI.
Last Friday Block & Leviton LLP a securities litigation firm representing investors nationwide, announces that it has filed a securities fraud class action against CV Sciences, Inc.and certain of its officers alleging violations of the federal securities laws and encourages shareholders to contact Block & Leviton ahead of the October 23, 2018 lead plaintiff deadline.
On August 29, Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against CV Sciences, Inc. and certain of its officers, on behalf of shareholders who purchased or otherwise acquired CV Sciences securities between June 19, 2017 and August 20, 2018, both dates inclusive. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
We have a Monster Pick Coming. Subscribe Right Now!
CVSI was one of the hottest stocks on the OTCBB and one of the most volatile hitting $9.20 new highs last week when Citron Research tweeted that “CVSI misrepresentation by management. The total bull case is based on REJECTED patents the company has never disclosed and continues to hype. Securities Fraud? Another IRTH special.” This caused the stock to collapse in hours to as low as $3.40 a share the first day and has dropped further since then. The short position here cites CEO Michael J. Mona history of questionable conduct including an SEC enforcement action and a fraud judgment against him as well as the fact that Citreon Research has been sued 5 times and never lost once. The longs point to all of the huge positives reported here: another huge revenue increase expected next quarter, higher net income, no debt, NASDAQ up listing as well as a number of new states that are legalizing MJ. We will be updating on CVSI when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CVSI.
Sign Up now for our 100% FREE Penny Stock Newsletter
Disclosure: we hold no position in CVSI either long or short and we have not been compensated for this article.