CVSI – CV Sciences Inc – compiled DD as of 7/23/18
CV Sciences, Inc. is a life science company that operates through two segments, specialty pharmaceuticals and consumer products.
CV Sciences’ Consumer Products Division is engaged in the development, manufacturing, marketing and sale of consumer products containing plant-based CBD, which is refined into its own proprietary branded products.
PlusCBD Oil is the top-selling brand of hemp-derived CBD oil for consumers in the natural products industry with a track record of excellence. PlusCBD Oil has built a reputation on product quality, safety and efficacy – offering the most diverse and largest supply of hemp-derived CBD oil on hand in the United States. Currently distributed nationally in health food stores, health care provider’s offices and online, each consumer products brand is backed by a formal safety review, growing body of case reports, and physician’s recommendations. Their products are in close to 2000 stores.
CV Sciences’ Pharmaceutical Division is developing synthetically-formulated cannabidiol-based medicine, pursuing the approval of the U.S. Food and Drug Administration (FDA) for drugs with specific indications utilizing cannabidiol as the active pharmaceutical ingredient. CV Sciences has achieved promising preclinical results in the development of cannabinoid medicines for treatment of a range of medical conditions. CV Sciences initial drug candidate (CVSI-007) is a chewing gum that combines CBD and nicotine, which the Company believes has the potential to effectively treat smokeless tobacco use and addiction. The market for cessation of smokeless tobacco use and addiction is estimated at $2 billion, growing to over $4 billion in the next 5-6 years.
No preferred shares issued.
Balance sheet per Q1:
Cash/AR/Restr.cash : $5.2 mln (includes $3.1 mln cash on hand)
Total Assets: $23 mln
Company fully repaid in cash ALL remaining outstanding convertible debt during Q1. Remaining debt balance of $850k is due in May 2019. This debt is NOT convertible.
They expect to repay this debt from cash flow over the next several quarters.
Total Revenue of 2016: $11 mln
Total Revenue of 2017: $21 mln (almost 100% growth YoY)
Q1 2017: $3.8 mln
Q2 2017: $4.1 mln
Q3 2017: $5.6 mln
Q4 2017: $7.2 mln
Q1 2018: $8.1 mln (over 100% growth from Q1 2017)
Gross profit : $5.5 mln (you are not going to find stock in this industry with better margin)
POSITIVE NET PROFIT of $620k
CVSI NEWS and developments in the industry:
CV Sciences, Inc. to Host Second Quarter 2018 Financial Results Conference Call on Wednesday August 1, 2018
CV Sciences, Inc. Files Application for Up-Listing to the NASDAQ Capital Market
LAS VEGAS, July 23, 2018 (GLOBE NEWSWIRE) — CV Sciences, Inc. (OTCQB:CVSI), preeminent supplier and manufacturer of hemp-derived phytocannabinoids including cannabidiol (CBD) oil and developer of specialty pharmaceutical therapeutics, announced that it has submitted its application to list the Company’s common stock in the U.S. on the Nasdaq Capital Market.
“We believe up-listing from the OTC Market to the Nasdaq Capital Market will increase corporate visibility, improve liquidity, and broaden awareness in the financial markets,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. “An up-list will open the investment opportunity to a larger pool of investors and help create greater shareholder value. We have made significant progress in strengthening our financial performance and liquidity, positioning the Company for future growth and profitability. A listing on the Nasdaq Capital Market is a natural progression for the Company and our shareholders.”
CV Sciences, Inc. Expands Retail Store Count of its Industry-Dominating Brand, PlusCBD Oil,™ in the Natural Products Industry
LAS VEGAS, July 17, 2018 (GLOBE NEWSWIRE) — CV Sciences, Inc. (OTCQB:CVSI), preeminent supplier and manufacturer of hemp-derived phytocannabinoids including cannabidiol (CBD) oil and developer of specialty pharmaceutical therapeutics, announced that its flagship brand, PlusCBD Oil,™ continues to expand its distribution in the natural, healthy, and organic industry. The Company today announced that its brand of #1 selling hemp CBD products (according to SPINS® scan data) are currently available in 1968 natural and organic health food stores as of June 30, 2018. This represents an 11.1% sequential increase over the Company’s retail store count as of March 31, 2018.
Proper coding/labeling Regulation in Indiana – PlusCBD on news as a example of proper product labeling.
on June 28 U.S. Senate passed legislation (Farm Bill) that would legalize hemp as an agricultural commodity. The bill would legalize hemp, removing it from the federal list of controlled substances and allowing it to be sold as an agricultural commodity.
The Senate’s farm bill still needs to be merged with a competing version from the House before it can be sent to the White House for President Trump’s signature.
FDA approved first CBD drug at the end of June. It is likely that the DEA will reclassify CBD in the next 90 days, says Stephanie Yip, an analyst at Informa Pharma Intelligence. (Epidiolex manufacturer GW Pharmaceuticals has said the same.) Most likely, according to Yip, it will be changed to Schedule IV or Schedule V, which are schedules that include other anti-seizure medications and anxiety drugs like Xanax and Klonopin.
CV Sciences, Inc. Issues Letter to Shareholders
LAS VEGAS, June 27, 2018 (GLOBE NEWSWIRE) — CV Sciences, Inc., (OTCQB:CVSI) (the “Company,” “CV Sciences,” “our” or “we”), preeminent manufacturer and distributor of the industry-dominating brand of hemp extract products, PlusCBD Oil™, announced today that it has issued a letter to its shareholders, providing an update on the Company’s recent progress and upcoming objectives.
Highlights of the Letter Include:
•Summary of its record breaking and profitable first quarter of 2018 which included record revenue, gross profit, cash flow, adjusted EBITDA and net income.
•Expansion of the Company’s footprint in the CBD product market with its PlusCBD Oil™ hemp-based CBD products rated #1 in the natural products retailer sales channel. This market opportunity is forecasted at $2.5 billion by 2022.
•Updates on its drug development efforts, its proprietary patent-pending drug candidate (CVSI-007) to treat smokeless tobacco addiction, a $2 billion market opportunity.
•Corporate developments that include deleveraging the Company’s balance sheet and positioning for future growth.
•Details of CV Sciences’ upcoming annual general meeting (AGM) to be held on August 4, 2018 at the Company’s new San Diego headquarters.
•Initiatives for 2018, focusing on operational efficiencies, sales growth, distribution channels, large drug development milestones that include investigational new drug application submission and clinical trials, and uplisting our stock to a major national exchange.
The Company’s Chief Executive Officer, Joseph Dowling, commented, “Our uplist initiative to a major national exchange is an important Company objective. The national exchanges require that a listed company’s stock price trade at certain levels for acceptance. We have included a proposal for shareholder vote at our AGM on August 4, 2018 for a reverse stock split, which has as its sole purpose clearing a pathway for the Company to “uplist” to a major national exchange. The Company will effectuate the reverse split only in connection with an application to uplist to a major exchange, and only if necessary.”
CV Sciences, Inc. Announces Landmark Publication on the Toxicology and Safety Assessment of Base Material of its PlusCBD Oil™
LAS VEGAS, June 15, 2018 (GLOBE NEWSWIRE) — CV Sciences, Inc. (OTCQB:CVSI) (the “Company”, “CV Sciences”, “our” or “we”) announced today the June 7, 2018 publication of the toxicology and safety results of an extract from the base raw materials used in its market leading PlusCBD Oil™ consumer products. The Company contracted respected scientific and regulatory consulting firm, AIBMR Life Sciences, Inc, to conduct the battery of toxicological studies to investigate the safety of oral consumption of the Company’s hemp cannabidiol (CBD) oil and to support a Generally Recognized as Safe (GRAS) Independent Conclusion.
The investment in this toxicological assessment demonstrates CV Sciences’ commitment in furthering the science behind the ingredient. AIBMR’s Chief Scientific Officer, John Endres, ND, comments, “Until today, there have been no comprehensive toxicological safety assessments completed on hemp CBD oil for 38 years. The completion and publication of these safety studies on this ingredient in a peer-reviewed academic journal specializing in toxicology is a monumental step forward in putting competent and reliable science behind a product. The public should applaud this effort as well as the time and expense it required.”
The Company’s Chief Executive Officer, Joseph Dowling, echoed this sentiment. “We are thrilled to advance phytocannabinoid science and are very pleased with the safety results from this landmark study. This is an important milestone in our pursuit of GRAS status,” he remarked. “As an organization, our commitment to safety remains paramount. We look forward to setting the bar for all hemp extract manufacturers in the market and encourage them to conduct similar toxicological assessments on their own base raw materials.”