CV Sciences Inc (OTCMKTS:CVSI) was coming off some records high until a short, Andrew Left, knocked them out of orbit with a report posted on Citron Research. The report itself seems rather paltry in light of the company’s sales growth, which is legitimately climbing on product and not patents. Now, the company is looking to get back to business and past the bad press, and they did so this week with a very strong news piece.
CVSI’s Gold Line in its PlusCBD Oil line received Generally Recognized as Safe status by the FDA. This is pretty significant news as CVSI is the only hemp CBD nutraceutical company to invest in the scientific evidence necessary to achieve this sought-after designation, recognizing an ingredient as presumably safe among experts under the conditions of its intended use. The press release catapulted the stock out of the $3.50 range to above $5.00.
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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Joseph Dowling, Chief Executive Officer at CVSI, commented, “We are committed to building consumer confidence and trust in the safety and quality of our products, supported by scientific evidence. This milestone significantly advances our leadership in this space and provides us with opportunities to broaden consumer access to our products, while removing any doubts on the safety and benefits of our products. We are proud to be the first and only company to obtain GRAS self-affirmation on a hemp extract and believe this is a milestone for CV Sciences as well as the entire hemp CBD industry.”
Currently trading at a market capitalization of $478.7M with a float of 80.66M, CVSI has a nice war chest of cash on hand and inspiring recent sales. It would seem that eventually this bad press will blow over and CVSI will get back to selling a very high quality product line. The company is pulling in trailing 12-month revenues of $33.3M. In addition, CVSI is seeing major top-line growth, with y/y quarterly revenues growing at 202.5%. We will update the story again soon as developments 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.