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Another Look At CV Sciences Inc (OTCMKTS:CVSI)

Another Look At CV Sciences Inc (OTCMKTS:CVSI)
Written by
Alex Carlson
Published on
September 15, 2016
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CV Sciences Inc (OTCMKTS:CVSI) has seen some wild swings over the past year. After hitting highs around $1 last November, shares dropped like a rock and hit the $.10 support level. The stock had some dramatic upswings, only to come crashing back down again. Now, shares are attempting a comeback and we decided to take another look at CV Sciences Inc.First up, a little background on the company. CV Sciences, Inc. 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.In its second quarter earnings report, CV Sciences saw the distribution of its branded consumer products increase to 705 retail locations as of June 30, 2016, compared to the 120 retail locations a year ago. CVSI reported sales of $2.5 million during the three months ended June 30, 2016, up from sales of $2.4 million for the same period last year. The Company's net loss for the three months ended June 30, 2016 was $2,226,902 or ($0.04) per share (basic and diluted), compared to net loss of $2,003,068 or ($0.06) per share (basic and diluted) for the three months ended June 30, 2015.As of June 30, 2016, the Company had cash of approximately $1.4 million. CV Sciences says that it has sufficient cash reserves and access to capital to meet its working capital requirements. Stockholders' equity amounted to approximately $21.8 million as of June 30, 2016. CEO Michael Mona Jr said:

"Given our established position as a market leader in CBD consumer products, we have pivoted our corporate strategy to include the development and commercialization of innovative medicines. During the second quarter of 2016, we initiated our preclinical drug development program following the acquisition of CanX, Inc. in December 2015. The remainder of 2016 will be focused on laying the groundwork for our development of novel therapeutics, utilizing synthetic CBD as the active pharmaceutical ingredient aimed at significant improvements in patient treatment for unmet medical needs. We have assembled a strong and experienced team to advance our clinical efforts and look forward to providing updates to our investors on the progress made in our drug development program. We remain focused on delivering innovative solutions to health care issues while creating value for our shareholders."

Last month, CV Sciences introduced the latest addition to its consumer products division, Purified Liquids™, 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.

The bottles containing Purified Liquids™ were specially designed to block UV light. By blocking UV light, the CBD vape liquids are protected against oxidation and separation, leaving a great tasting product every time. Using a proprietary process in CV Sciences' state-of-the-art GMP laboratory, Purified Liquids'™ solvent-free solutions are unique from other CBD vape products. CBD crystals are derived from 100% agricultural hemp as opposed to synthetic chemicals or compounds. Each product is thoroughly lab tested to ensure the absence of harmful chemicals, heavy metals, solvents, or pesticides. Purified Liquids™ are available for sale online and for wholesale distribution and comes in two flavors - Inertia (guava honeydew with tangy, fruit-forward, and tropical note) and Isotope (watermelon chill with a refreshing, sweet, clean taste and hints of spearmint).

Currently trading with a market cap of $13 million, CVSI is one of the few pot stocks producing actual sales and spending money on research and development. The company has a long runway for growth as 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. Driving the company’s growth is the its position as the market leader with its hemp-derived bulk and finished cannabidiol oil products. 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.

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