Rating: Strong Buy
Thesis: CBD Industry
Second Quarter 2018 Financial and Operating Highlights:
Record Sales of $12,349,000 , an increase of 203% compared to Q2 2017
Record Gross Profit of $9,060,000 , an increase of 219% compared to Q2 2017
Record GAAP Net Income of $3,186,000 , an improvement of $4,178,000 compared to Q2 2017
Record Adjusted EBITDA $3,806,000 , an improvement of $4,087,000 compared to Q2 2017
Increased Retail Channel Distribution to 1,968 Stores as of June 30, 2018 , an 11% sequential increase over the Company’s retail store count for the first quarter of 2018
Continued Progress in Drug Development Division including preclinical progress with CVSI-007, the Company’s patent-pending synthetic-based cannabidiol, which will be co-administered with nicotine to provide treatment options for smokeless tobacco use and addiction, currently a multibillion-dollar market with no currently FDA -approved drugs available to help patients.
LAS VEGAS, Feb. 05, 2019 (GLOBE NEWSWIRE) — CV Sciences, Inc. (OTCQB:CVSI) (the “Company”, “CV Sciences”, “our”, “us” or “we”), a preeminent supplier and manufacturer of hemp CBD products through its industry-dominating brand PlusCBD Oil™, today announced that it has engaged ICR, a leading strategic communications and advisory firm, to enhance the Company’s investor relations, media relations and corporate communications program.
“CV Sciences experienced significant growth in 2018 and we are well positioned to continue to accelerate our growth in 2019 and beyond as we execute our business strategy, expand our retail and e-commerce distribution, and bring innovative branded CBD products to market,” said Joseph Dowling, Chief Executive Officer. “ICR’s capital markets and financial media expertise, combined with its significant experience in the nutritional supplement, cannabis, CPG and retail sectors will enhance our communications to all of our stakeholders, broaden exposure to institutional investors, and deepen the financial communities’ understanding of CV Sciences’ differentiated business model, growth strategy and market opportunity. We are excited to partner with ICR as we enter this next chapter of growth for our Company and the hemp-based CBD market.”
CV Sciences’ PlusCBD Oil™ is the top-selling brand of hemp-derived CBD on the market and ranked second in sales in the independent natural products retailer channel when combining all product category sales in food supplements, according to SPINS, the leading provider of data and insights for the natural, organic and specialty products industry. The Company’s natural product retail channel includes more than 2,000 locations nationwide and the Company expects the passage of the 2018 Farm Bill to result in significantly increased distribution across food, drug and mass (FDM) channel retailers, broadening exposure and availability of PlusCBD Oil to millions of U.S. consumers.