CV Sciences Q4 Revenues Jumped 96 Percent


Cannabis companies have seen excellent revenue growth figures over the past couple of quarters. While sheer profitability hasn’t been high for many companies, especially since the prevailing attitude amongst management teams is to reinvest this into aggressive M&A activities, mainstream investors are still excited about sheer growth figures. One small cannabis company, CV Sciences (OTCQB: CVSI), reported exceptionally strong financial results today with a 96 increase in Q4 revenues.

CV Sciences is a CBD-focused company that operates both a growing retail arm as well as an early-stage CBD pharmaceutical R&D division. Overall, 2018 revenues were reported at $48.2 million, a 133 percent increase over the previous year. Net income currently is at $10 million as the company expands its retail distribution to over 2,200 stores as of December 31st, 2018. Other financial figures worth noting include the company’s $12.7 million cash balance in their account, a healthy figure for such a small company.

We finished 2018 with strong sales momentum and enter 2019 well positioned to capitalize on the rapidly growing consumer awareness and broad-based demand for hemp CBD products. We generated 133% revenue growth during 2018 and expanded the availability of the PlusCBD brand to over 2,200 stores nationwide,” said CV Sciences CEO Joseph Dowling. “The December passage of the 2018 Farm Bill has further broadened consumer and retailer interest in the hemp CBD product category and we are seeing significant new interest from nearly all channels of distribution. We are positioning our company to capitalize on this incremental growth opportunity with enhancements to our leadership team and business systems, and are in the planning process for expanding production and fulfillment capabilities to support rising demand.”

Other news announcements for the company include confirmation from chief executives that their drug development program is moving ahead. CVSI-007, their proprietary drug candidate, would take the multi-billion-dollar smokeless tobacco market and helping people treat nicotine addiction.

Shares of CVSI on the over-the-counter markets didn’t respond much. Trading companies listed on the OTCMKTS is riskier than normal exchanges such as the NASDAQ and NYSE, or even the less mainstream exchanges such as the TSXV. This is because these companies don’t need to provide as much financial data as other companies on these bigger exchanges.

However, some of these companies are excellent investment opportunities as the more successful of these businesses begin listing on larger, more respected exchanges. At the same time, relative lack of liquidity in these companies means they are harder to trade for short-term investors.

CV Sciences Company Profile

CV Sciences, Inc. (OTCQB:CVSI) operates two distinct business segments: a consumer product division focused on manufacturing, marketing and selling hemp-based CBD products to a range of market sectors; and a drug development division focused on developing and commercializing novel therapeutics utilizing CBD.

The Company’s PlusCBD Oil is the top-selling brand of hemp-derived CBD on the market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry. CV Sciences, Inc. has primary offices and facilities in San Diego, California and Las Vegas, Nevada. – CV Sciences