CV Sciences Inc (OTCMKTS:CVSI) Making Big Moves

The last time we talked about CV Sciences Inc (OTCMKTS:CVSI) was back in October. Shares then went on to an epic run and hit highs just under $1 ahead of the November marijuana ballot initiatives. We're liking the price action again in CVSI and believe that shares could be about to breakout to the upside.As we've said in the past, many might categorize CVSI as a pot stock, but the company is in fact more of a pharma play in the cannabis space. CVSI is focused on developing and commercializing cannabis compound medicines and selling hemp-based products. The company 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 to a range of market sectors. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.The company has pivoted into drug development to address a $5.3 billion market opportunity. Earlier this year CVSI announced the acquisition of CanX Inc., to pivot its strategic focus from leading the market of hemp-derived cannabidiol (“CBD”) oil products into an expansive pharmaceutical company focused on the development and commercialization of innovative medicines.Through CanX, CVSI acquired a proprietary drug portfolio, including a lead drug candidate utilizing synthetically formulated CBD for use in the treatment of smokeless tobacco addiction. Nicotine is the largest drug addiction problem worldwide and represents a significant opportunity to develop an effective treatment for this addiction.CVSI just got some major support for its initiatives from Major League Baseball regarding smokeless tobacco. Beginning this upcoming season, cities that include San Francisco, Boston, and Los Angeles will ban smokeless tobacco in the big-league ballparks and other sports venues. The city councils of Chicago and New York recently approved similar prohibitions on smokeless tobacco for Wrigley Field, U.S. Cellular Field, Citi Field and Yankee Stadium. CVSI CEO Michael Mona pretty much summed it up for the company when he said:

"We applaud baseball's new labor agreement that prohibits all new players from using smokeless tobacco, like chew, dip and snuff. The recent death of former San Diego Padres Hall of Famer Tony Gwynn has highlighted the seriousness of the issue. Mr. Gwynn attributed his long struggle with salivary gland cancer directly to his many years of chewing tobacco. Curt Schilling, former Boston Red Sox pitcher revealed his diagnosis of oral cancer which he stated was 'without a doubt, unquestionably' due to decades of chewing tobacco. We strongly believe that highlighting these examples are critical as we at CV Sciences are addressing a massive unmet medical need in the treatment of smokeless tobacco addiction. Currently, there are no FDA-approved drugs to treat this widespread and deadly addiction. Our lead drug candidate, CVSI-007, is aimed at addressing this huge unmet need. We estimate that the current treatment market in the U.S. alone is greater than $2 billion."

According to Statista, there was $5.3 billion in retail sales of smokeless tobacco products in 2014, and approximately 1.3 billion units of smokeless tobacco products were sold during that time. Smokeless tobacco addiction is an unmet need that addresses a massive market opportunity, and it's believed that CVSI’s initial drug candidate to treat smokeless tobacco addiction will dramatically improve patient outcomes for millions.In its consumer products division, CV Sciences introduced Purified Liquids last year, which the company claims offers the highest quality, premium CBD vape e-liquids available on the market today. The launch of this brand targets the vape industry, which is expected to reach US$32.11 billion worldwide by 2021, according to Research and Markets Assessment of the World Vape Market. Made from 99.9% CBD from hemp-derived crystals and containing 0% THC, each Purified Liquids product provides at least 360mg of hemp-derived CBD per 30mL bottle, offering 12mg of CBD per mL.Currently trading with a market cap of $25 million, there are just 9 million shares in the float. With the company's progress being made and a number of upcoming catalysts, CVSI looks to be on the verge of another run higher. We believe that CVSI has all the ingredients in place for long-term capital appreciation. When you consider that CVSI is trading at just 1x book and 2.5x sales, CVSI is awfully cheap at current levels compared to a company like Medical Marijuana Inc (OTCMKTS:MJNA) trading at 55x sales and 2.5x book. We believe CVSI is one of the must-own stocks in the cannabis sector. We will be updating our subscribers as soon as we know more. For the latest updates on CVSI, sign up below!Disclosure: We have no position in CVSI and have not been compensated for this article.