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CV Sciences Inc (OTCMKTS:CVSI) Pot To Pharmaceuticals

CV Sciences Inc (OTCMKTS:CVSI) Pot To Pharmaceuticals
Written by
Aaron Smith
Published on
October 20, 2016
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CV Sciences Inc (OTCMKTS:CVSI) has doubled in the past month. It may be partially rising along with the other cannabis stocks as we get closer to the election, however, that's not the real story. While the public might view this as a pot stock, this is really a completely different play. As you’ll read below, it may be not just double, but trade at an order of magnitude as to where it is now.CVSI’s stock may have risen partially as a result of the Company being categorized by speculators as a marijuana stock. However, CVSI is focused on developing and commercializing cannabis compound medicines and selling hemp-based products. With several states having further marijuana legislation being voted in the election, some have been pushing marijuana and hemp stocks big time in recent months. However, CVSI doesn’t have really anything to do with pot. While the public might view it as a pot stock, it’s really a completely different play.CVSI 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.Those of you who have followed CVSI’s story over the past several years are probably familiar with its consumer products division, which delivers botanical-based CBD products such as PlusCBDOil™, its top-selling brand. It has already established a position as a market leader in CBD consumer products. The Company is now positioned as a life science company operating in two distinct yet complementary segments: specialty pharmaceutical and consumer products.Early-stage pharmaceutical companies are typically burning cash until FDA approvals and commercialization. However, CVSI’s consumer division may be a source to utilize for money. CVSI’s CBD Consumer Division has grown from 120 retail locations to now over 700 locations and it's expected to keep growing. There is a multitude of macro-factors that continue to drive the market for natural CBD and hemp products.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.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 its believed that CVSI's initial drug candidate to treat smokeless tobacco addiction will dramatically improve patient outcomes for millions.Its initial drug candidate (CVSI-007) is a chewing gum that combines synthetic CBD and nicotine, which it believes has the potential to effectively treat smokeless tobacco and tobacco addiction. CVSI has a patent pending on the technology and is pursuing the 505(b)(2) FDA drug approval pathway to bring it to market.On the capital markets side, CVSI stated that it is working toward an uplisting of its shares so that it can generate increased visibility, better liquidity and lower cost of capital, as well as attract a broader range of institutional investors.There are meaningful milestones right in front of CVSI. As a result, this is an extremely opportune time to invest in the stock. CVSI traded as high as $117 in March 2014. With this shift in the strategy being recognized by the marketplace, it has all the ingredients required for long-term capital appreciation. 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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