Fresh Start For CV Sciences Inc (OTCMKTS:CVSI)

CV Sciences Inc (OTCMKTS:CVSI) was able to get rid of the last remnants of its past by getting its ticker symbol changed from CANV to CVSI. The old Cannavest is now officially dead and shareholders are hoping the new name and ticker will mean better days ahead. Judging by the stock's performance this year, this certainly looks to be the case.CV Sciences operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic cannabidiol (CBD); and, a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors. CV Sciences has primary offices and facilities in Las Vegas, Nevada and San Diego, California.In May, CV Sciences reported that distribution of its branded products increased to 574 retail locations as of March 31, 2016 compared to zero retail locations during the first quarter of 2015. However, revenues dropped to $2.4 million compared to revenues of $2.7 million for the three months ended March 31, 2015 as the company cut pricing on some of its products. Gross margin rose to 67.1% for the three months ended March 31, 2016 compared to 58.1% for the three months ended March 31, 2015. This increase comes as the company transitioned from its historical reliance on bulk oil sales to a more diversified and profitable business model as a manufacturer and distributor of branded consumer products.As of March 31, 2016, the company had cash of approximately $0.5 million and believes it has sufficient cash reserves and access to capital to meet its working capital requirements. Stockholders equity amounted to approximately $23.0 million as of December 31, 2015. CV Sciences said:

Management believes the Company has the funds needed to continue its consumer product division and meet its other obligations over the next year solely from current projected increased revenues and cash flow and because our current inventory levels are sufficient to support sales for 2016, resulting in reduced cash outflow for inventory purchases. In addition, we do not intend to purchase raw inventory from our supply chain arrangements from the 2016 crop. The Company's pharmaceutical division will require additional capital of approximately $1,500,000 over the next 12 months. We currently have an executed term sheet on a financing arrangement that would provide this capital. Management believes that it will be able to obtain such financing on terms acceptable to the Company.

CV Sciences rebranding comes after the company underwent a series of transactions where it acquired CanX Inc. and its wholly-owned subsidiary, Canabine LLC back in January. 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. CV Sciences 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.Driving the company's growth is the its position as the market leader with its hemp-derived bulk and finished cannabidiol 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 CVSI has targeted are the natural products industry and the medical providers market.Currently trading with a market cap of $22 million, CVSI is one of the few pot stocks producing actual sales. We believe this rebranding is a fresh start for the company and its shareholders. As more awareness gets raised on the new CV Sciences, we believe another bull run will be starting again. We will be updating Insider Financial as soon as we know more. For continuing coverage on CVSI, sign up for our free newsletter and get a copy of The Insider Financial Guide To Penny Stocks as an added bonus!Disclosure: We have no position in CVSI and have not been compensated for this article.