CV Sciences Inc (OTCMKTS:CANV) Looking To Rebound

CV Sciences Inc (OTCMKTS:CANV) was formerly known as CannaVest Corp. Based in Las Vegas, CV Sciences focuses on drug development activities on products containing the hemp plant extract cannabidiol (CBD) as the active pharmaceutical ingredient, and also is engaged in the sale of CBD, and the development, marketing and sale of end consumer products containing CBD, which is refined into its own PlusCBD Oil brand.Last month, CANV underwent a series of transactions where it acquired CanX Inc. and its wholly-owned subsidiary, Canabine LLC. CanX and Canabine have commenced efforts to develop synthetically-formulated cannabidiol for use in drug development activities, and particularly to pursue approval of the FDA for drugs with specific indications utilizing cannabidiol as the active pharmaceutical ingredient. CannaVest has acquired all of CanX's rights and assets in connection with such development activities, and intends to aggressively pursue drug development as its primary business. CEO Michael Mona said:

"CanX has achieved promising pre-clinical results in the development of cannabinoid medicines for treatment of a range of medical conditions. This investment evolves CannaVest into a life science company with a primary focus on drug development utilizing cannabidiol as the active pharmaceutical ingredient in a portfolio of cannabinoid medicines. CannaVest will continue to be the leading producer and distributor of consumer products utilizing cannabidiol. "This acquisition will allow us to leverage our expertise and reposition the Company to focus primarily on drug development, but also to continue our market leadership as a consumer products based company. Our repositioning and pending name change to 'CV Sciences, Inc.' will provide investors with a more clear understanding of the Company's objectives."

This acquisition is a smart move by the company. What we really like about CANV is that it’s one of the few pot stocks producing actual sales. It’s one of the leaders in the marijuana industry and will be one of the first names investors flock to when pot stocks get hot again. In the third quarter, CANV reported revenues of $4.2 million compared to just $1.9 million in the prior year. CANV has currently $1.1 million in cash, which is enough working capital to fund current operations.

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Driving CANV’s growth is the company’s position as the market leader with its hemp-derived bulk and finished cannabidiol (“CBD”) oil products. CBD can be used as a dietary supplement, beauty care product, and as an ingredient for numerous other products from pet foods to vape products to specialty beverages.The two markets that CANV has targeted are the natural products industry and the medical providers market. As of December 2015, CANV’s PlusCBD Oil finished products are available in nearly 400 retail store locations. In the health practitioner market, CANV’s finished products are available in over 200 practitioner offices across the US.We think the cannabis sector could get hot again in 2016, just like it did in 2014. There is a lot of legislation that will be addressed concerning marijuana use this year. Many states have initiatives for November that focus on legalizing or regulating marijuana for adult use. These include Nevada, Massachusetts, Arizona, Maine and California. Some states are trying to pull together legislation for the November ballots. They include Florida, Arkansas and Missouri.In Congress, there are a number of pieces of legislation that will be voted on. These include bills that would allow states to legalize medical marijuana without federal interference and reschedule marijuana to a schedule II drug. It would eliminate barriers to research and allow banks to work with marijuana companies.

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One of the biggest overhangs on the stock has been a history of dilution. However, those days look to be over. Earlier this month, CANV prepaid investors holding a series of its Convertible Promissory Notes in advance of conversion, thereby avoiding dilution to its stockholders. This is a huge positive for shareholders and one which will allow investors to finally make some money on CANV. We will be updating Insider Financial with the latest from CANV. Sign up today and stay on top of the newest developments from CANV!

Disclosure: We have no position in CANV either long or short. We have not been compensated for this article.