CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

CANV now says the deal only worth $8M

Don't know if you saw this in the 10-K, but the reason that CANV said it's 1Q - 3Q filings couldn't be counted-on was probably because it's now saying that the audited cost of the Phytosphere deal was $8,020,000 (page F-12).

The 10-K also doesn't even mention the $4.50 - $6.00 collar they put on the shares anymore.

Once the $950,000 in cash they paid is subtracted, they value the 5,825,000 shares given to MJNA and HDDC at $7,070,000, which works out to $1.21/share (though they don't mention this number). And that's probably what the deal was actually worth.

I've been writing for most of the past year that the $35M price and the quarterly installments were designed to pump-up the income numbers for Phytosphere's seller, Medical Marijuana, Inc., and the drastic revision to the cost of the deal seems to indicate that the original $35M price was dramatically overstated.

What's really surprising to me is that CANV doesn't even mention the $35M value of the deal in the 10-K, though that value was mentioned in the 10-Qs for Q1 - Q3 of 2013.

This change is probably why CannaVest is having to revise their 10-Qs for 2013, but unfortunately for CANV, the announcement has attracted the attention of the Rosen Law Firm, which issued a PR on Friday evening announcing an investigation into CANV:

http://ih.advfn.com/p.php?pid=nmona&article=61825205

If they were trying to do a favor to Medical Marijuana, Inc by structuring the deal the way they did, it appears the old proverb, No good deed goes unpunished may apply here.