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Saturday, December 3, 2022

Why CV Sciences Inc (OTCMKTS: CVSI) Holds All the Cards

CV Sciences Inc (OTCMKTS: CVSI) has had a spectacular 2018 rising up from pennies to highs of $9.20 a share before it all came crashing down. The last few month’s action and turmoil has created another great entry point for CVSI at $4.

CV Sciences has established itself as a leader in the red hot CBD market. The Company was founded by entrepreneur Michael Mona in 2012. CVSI added Joseph Dowling as CFO in 2014 and in May 2018, he assumed the role of CEO. CV Sciences leading PlusCBD™ product line, is #1 in the hemp CBD product category in the natural products retail channel and is currently sold in over 2,000 U.S. retailers, nationwide. Sales have been massive and have seen rapid growth; On November 7 CVSI reported 3rd quarter financial results; the Company reported record sales of $13,600,000, an increase of 143% compared to Q3 2017.

PlusCBD™ product line is wildly popular and it has given the Company an early competitive advantage in the booming CBD space. According to a recent report issued by New Frontier Data, the U.S. CBD industry grew by nearly 40% in 2017, reaching $367 million in sales across hemp-derived and marijuana-derived markets. This marks the first year that sales of hemp-derived CBD products outpaced marijuana-derived CBD products. Much of the recent growth has come from the demand for hemp-derived CBD for use in health and wellness products.

MicroCapDaily has been reporting on this Company for years starting in October 2014 when we noted “CannaVEST Corp (OTCMKTS:CANV) has been moving steadily upwards in recent trading off its base at $2.40. Investors still remember the spectacular run this one made earlier this year from a few dollars to over $200 a share.

The recent pullback on CVSI after the stock hit $9.20 a share was initially caused by the short attack by Andrew Left and Citron and there are still a number of lawsuits pending as a result. This is not the first time CVSI has dealt with lawsuits with Mr. Mona and the Company charged by the SEC last year. The case was finally settled in May of this year with neither party admitting nor denying any wrongdoing.

CVSI is busy advancing their lead drug candidate – CVSI-007 – which addresses the multibillion dollar smokeless tobacco use and addiction market. The Company continues to make progress with pre-clinical program, anticipating filing an Investigational New Drug application in 2019.

On November 7 CVSI reported third quarter 2018 financial results announcing Record Sales of $13,600,000, an increase of 143% compared to Q3 2017. This represented a 10% sequential quarterly increase from $12.3 million reported for Q2 2018 roughly translating in to a 40% annual growth rate.

CEO Joseph Dowling recently commented “We are encouraged by our performance as we delivered another strong quarter, including our third consecutive quarter of profitability. This was led by initiatives that include accelerating our brand recognition and brand loyalty and growing sales distribution channels that have generated triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison. The demand continues to respond strongly to our leading PlusCBD™ product line, #1 in the hemp CBD product category in the natural products retail channel and we believe this is just the beginning for the vast and nascent hemp CBD market. Most notably during the quarter, we earned the industry’s first self-affirmed Generally Recognized as Safe (GRAS) status for our Gold Formula product line, a move that shows our dedication to building consumer confidence, trust and safety of our products. In conjunction with that, our product innovation was on full display with the introduction of our new PlusCBD Oil™ Gummies in two flavors, Cherry Mango and Citrus Punch as additional factors for driving revenue.”

There is a lot to get excited about with CVSI trading in the $4 range representing a total market valuation of around $400 million. CVSI has runner in its blood with a long history of explosive moves; the NASDAQ listing and expected passing of the 2018 Farm Bill are two upcoming major catalysts that could drive another massive leg up for CVSI.

We will be updating on CV Sciences when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CV Sciences.

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Disclosure: we hold no position in CVSI either long or short and we have not been compensated for this article.

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