CV Sciences (OTCQB:CVSI)
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 in manufacturing, marketing and selling plant-based CBD products to a range of market sectors.
- CV Sciences named one of the FIRST U.S. HEMP Authority Certified Manufacturers and PlusCBD Oil™ softgels named “Top Pick” by ConsumerLab.com
- Receives Nutritional Outlook’s 2018 Best of the Industry Award
- Resolved all claims and matters related to the SEC’s enforcement action against the Company. Michael J. Mona, Jr. concurrently settled all claims brought against him personally in this SEC matter
- PlusCBD Oil™ is Ranked the #1 Selling Hemp CBD Product According to SPINS Scan Data.
- Significant enhancements to management team in finance, science and regulatory functions:
a) Appoints Deloitte & Touche LLP as auditor
b) Appoints Joerg Grasser as New CFO (Prev role is Chief Accounting Officer)
c) Appoints Dr. Douglas as SVP of Scientific & Regulatory Affairs
d) Engages ICR to enhance Investor Relations & Corporate Communications
e) Retirement of Founder Michael Mona, Jr
RETAIL STORE PLACEMENT
Year End 2018 Financial Results
- Record revenue of $48.2 million for 2018, an increase of 133% over 2017;
- Record net income of $10.0 million, or $0.09 per fully diluted share;
- Record adjusted EBITDA of $14.0 million or 29.0% of net revenue for 2018, an increase of $12.4 million from $1.6 million for 2017;
- Retail distribution increases to 2,238 stores as of December 31, 2018, a 45% increase over the prior year;
- Generated $12.6 million of cash from operations, with cash balance increasing to $12.7 million at year end;
Key Message from CEO:
“As we enter 2019, our business development activities remain robust. The passage of the 2018 Farm Bill has significantly expanded retailer interests from many new distribution channels. We believe distribution is on the verge of broadening to more traditional food, drug, mass merchandise and convenience store retailers. We are intently focused on leading the expansion of hemp-based CBD products to a broader retail audience nationally.”
Q1 2019 Financial Financial and Operating Highlights
- Record revenue of $14.9 million for the first quarter of 2019, an increase of 85% over the same quarter in 2018;
- Strong gross margin of 70.8% compared to gross margin of 68.9% in the first quarter of 2018
- Retail distribution increased to 3,308 stores as of March 31, 2019, a 48% increase from December 31, 2018;
- Expanded retail presence into the food, drug and mass channel and are in active discussions for further expansion of the PlusCBD Oil™ brand; and
- Generated $0.8 million of cash from operations, with cash balance increasing to $13.6 million at quarter end.
- Significant enhancements to management team in finance, science and regulatory functions.
- Distribution expansion into Food, Drug and Mass Channels
- Generated positive EBITA for the past 4 quarters
- Nasdaq up listing
- Lead drug candidate CVSI-007 progress expected reveal more data in the coming QR, below is the progress:
- Engaged with the FDA (May 31, 2019)
- Complete nonclinical toxicology studies in 2019
- Submit Investigational New Drug (IND) application in 2019
- Begin clinical trials in 2019
Top 5 Hemp-derived CBD companies Market Shares: CVSI ranked #2
Competitor Analysis: CVSI market cap / rev is the cheapest among top 3 Hemp company. (Excl MJNA as the shares counts is too high & cash / EBITA not available)
Things to watch out:
- Delays in Nasdaq uplisting
- Potential to raise financing to support the clinical trials
Analysts Target Price :
- Northland Securities: $8
- Roth Capital: $9
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- CVSI Investor Presentation
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