The question is in play as to when we might see reliable signs of a core market-cycle low for shares of CV Sciences Inc (OTCMKTS:CVSI). It’s been a remarkable share value repricing cycle that has left this stock in tatters. But those might be some tasty tatters for believers in the CBD revolution. To help shore up that value argument, the company just announced that Tim Hitchman, PhD, has joined the Company as Director of Operations.
“We are very pleased to welcome Dr. Tim Hitchman to the CV Sciences team,” said Joseph Dowling, Chief Executive Officer of CV Sciences. “Tim brings a wealth of experience in leading product development and commercialization, as well as in operational roles in hemp & cannabis, food ingredients, agricultural processing & industrial biotechnology. He will play an integral role in enhancing and driving our operations to advance product innovation and commercialization. Tim’s expertise across multiple key functional areas and industries will further accelerate our innovation pipeline and growth.”
CV Sciences Inc (OTCMKTS:CVSI) frames itself as a life science company, focuses on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD).
The company approaches operations in the form of two distinct lines of business. One of them is a drug development division that is predicated on the development and sale of unique synthetic CBD solutions. The other is a diversified consumer product segment driven toward producing and selling non-synthetic (ie, natural, cannabis plant-based) CBD products that target the nutraceutical, beauty care, specialty foods, and vape markets.
The company was the breakout leader in the CBD revolution in the publicly traded markets, with a massive run higher back in the fall of 2018 when it ran from under $0.50/share to over $8/share in a matter of months before being taken down by class-action lawsuit complaints and a bear campaign from Citron’s Andrew Left, which started on Twitter and dealt with valuation and potential IP missteps.
According to company materials, “CV Sciences, Inc. (CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division in 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.”
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As noted above, CVSI just announced that Tim Hitchman, PhD, has joined the Company as Director of Operations.
The stock has suffered a bit of late, with shares of CVSI taking a hit in recent action, down about -10% over the past week. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 4% beyond what we have been seeing over the larger time frame.
“CV Sciences is a hemp CBD pioneer, leads the market in hemp CBD products and is a proven leader in science, regulatory and compliance,” said Dr. Hitchman. “I am excited to join the CV Sciences team and leverage my experience to help the Company capitalize on the long-term opportunity in the growing hemp CBD industry through continued product innovation and differentiation based on the scientific rigor CV Sciences has long deployed.”
CVSI has a significant war chest ($14.2M) of cash on the books, which must be weighed relative to about $12.1M in total current liabilities. One should also note that debt has been growing over recent quarters. CVSI is pulling in trailing 12-month revenues of $58.6M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -7.3%.
We look forward to updating our views on this name as more headlines break and the action plays out further.
Disclosure: we hold no position in $CVSI, either long or short.