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This seems to show that class actions can be dismissed on the face of their claim and do not need to wait for certification. https://www.robinskaplan.com/~/media/PDFs/Using%20Motions%20to%20Dismiss%20to%20Challenge%20Class%20Allegations.pdf
That catalyst could be soon too perhaps.
As Tompal likes to say... put another log on the fire...
Thanks Vandy. So does anyone know when we could get this dismissed? I think filing is better than vague threats- allows CVSI to act.
Here is my DD on uplist timeline (repost from last Friday)
Pre-read page 10 here: https://listingcenter.nasdaq.com/assets/initialguide.pdf
1. CVSI passed the $50 mil Marketcap on on April 18 at $.55 (using 90.9mil float= $50.9mil MC)
2. For 90 days (thru July 18) it has never closed below this level. So, requirement one, complete.
3. Monday July 23 was the first day of Stock Price closing above $2 which coincided beautifully with the 90 days Market Cap +$50 mil requirement. (Actually 'back' above since we all enjoyed those brief bursts above $2 in early June.)
4. Why $2 for SP? CVSI qualifies easily under the $2 alternative closing price because of part ii in the ** note below the table. "Net tangible assets of $5 mil" since we know how much cash and other assets are way over this.
5. Application filed on that day - Monday July 23.
6. Response is 4-6 weeks average review by NASDAQ we are told by investor relations. 6 weeks from July 23 is Monday, Sept 3 (Labor Day). And maybe summer vacations, worry about SP erosion by short attack and colluding lawsuits (which never came close to threatening the minimum requirements), slowed down the last approval steps by a week, I would put notification in week of Sept 10 or week of 17th maybe? (update- IR told me this week it could be up to 120 days, but could be shorter.)
7. If this happens by Sept 14 when I am in San Diego, I will bring management some cupcakes or something...
8. Finally - regarding Nasdaq Capital Markets, CVSI would not be the 98lb weakling at this level. At $4 close for $364m MC, CVSI would be 89th largest MC out of 983 companies! Good company with AMD, Hostess, Dennys, Lands End and a gazillion biotechs... (https://www.nasdaq.com/screening/companies-by-industry.aspx?exchange=NASDAQ&market=NCM&sortname=marketcap&sorttype=1)
Of course: do your own DD
https://listingcenter.nasdaq.com/assets/initialguide.pdf
Table on page 10 (Nasdaq Capital Market Financial and Liquidity Requirements).
Read the middle column - Market Value of Listed Securities Standard.
At the bottom of the table is written: Quote:
* Currently traded companies qualifying solely under the Market Value Standard must meet the $50 million Market Value of Listed Securities and the applicable bid price requirement for 90 consecutive trading days before applying.
** To qualify under the closing price alternative, a company must have: (i) average annual revenues of $6 million for three years, or (ii) net tangible assets of $5 million, or (iii) net tangible assets of $2 million and a 3 year operating history, in addition to satisfying the other financial and liquidity requirements listed above.
I also don't think we should estimate the upside catalyst of the dismissal of these frivolous lawsuits. Picture each citron chaser as another log on the fire. When these dismiss, there will be a lot of fuel. We already saw the settlement this spring had a nice effect. Does anyone know how long until we know a) if any get filed; and b) if they do, how long it would be for a motion to dismiss?
Yes according to IR. I called and spoke to them this week and was told the same that it could (not would) take up to 120 days. We are more than halfway there and farm bill coming in two weeks so if it is next week or not until Oct 23 just before our next earnings, either way is great. The key is where do people think we will be Nov 15? Higher or lower than $4. Or $6.6? Or 9? I say higher than all of these and will keep buying as I can raise cash. GLTA
I think so, yes. The timing is very close, I don't know of any others looking to ipo or uplist, so maybe Nasdaq is also thinking of the PR benefits of participating in the new markets opened by the hemp/farm bill.
McConnell pro-hemp comments an hour ago: https://www.tristatehomepage.com/news/national-news/sen-mcconnell-speaks-in-favor-of-industrial-hemp-provision-in-farm-bill/1420027795
I like that he appointed himself to this committee - which he says he only does when he really wants something to happen.
I like the personal involvement in his work- reminds me of Jimmy Serrano from 'Midnight Run'
Jimmy Serrano : You and that other dummy better start getting more personally involved in your work, or I'm gonna stab you through the heart with a f**kin' pencil. Do you understand me?
Tony Darvo : You got it, Jimmy.
Joey : Hey, Tony... he ain't mad at me, is he?
(RIP Dennis Farina)
Vandy - was that a reasonable test of the 50 day MA? How do you or other traders judge that. Is it related to volume near the level or time near the level?
TR6767:
I think you have a smart cautionary point. However, Tilray has lots of cannabis CBD already. The medical marijuana legality may give NASDAQ cover. I hope that precedent, along with the impending Farm Bill, will allow NASDAQ to moveahead. But... NASDAQ may slow-play it to get as close to farm bill as possible? It will be interesting to see the timing of these two...
My NASDAQ uplist Due Diligence (I agree with you Ania77 - it may not be next week. Benjo- my logic ends up slightly differently than your earlier post. Follow the logic and dates- happy to hear thoughts.)
1. CVSI passed the $50 mil Marketcap on on April 18 at $.55 (using 90.9mil float= $50.9mil MC)
2. For 90 days (thru July 18) it has never closed above this level. So, requirement one, complete.
3. Monday July 23 was the first day of Stock Price closing above $2 which coincided beautifully with the 90 days Market Cap +$50 mil requirement. (Actually 'back' above since we all enjoyed those brief bursts above $2 in early June.)
4. Why $2 for SP? CVSI qualifies easily under the $2 alternative closing price because of part ii in the ** note below the table. "Net tangible assets of $5 mil" since we know how much cash they reported Aug 1 ($7 mil). This may not have been a coincidence to build cash above this level and not immediately redeploy it ...as some latex salesmen have tried to criticize them for...)
5. Application filed on that day - Monday July 23.
6. Response is 4-6 weeks average review by NASDAQ we are told by investor relations. 6 weeks from July 23 is Monday, Sept 3 (Labor Day). And maybe summer vacations, worry about SP erosion by short attack and colluding lawsuits (which never came close to threatening the minimum requirements), slowed down the last approval steps by a week, I would put notification in week of Sept 10. (if Benjo point re Dr Maroon is right, then week of 17th maybe?)
7. If this happens by Sept 14 when I am in San Diego, I will bring management some cupcakes or something...
8. Finally - regarding Nasdaq Capital Markets, CVSI would not be the 98lb weakling at this level. At $4.33 close for $393m MC, CVSI would be 85th largest MC out of 983 companies! Good company with AMD, Hostess, Dennys, Lands End and a gazillion biotechs... (https://www.nasdaq.com/screening/companies-by-industry.aspx?exchange=NASDAQ&market=NCM&sortname=marketcap&sorttype=1)
Of course: do your own DD (the notes below from old Jefra post- I learned a lot on CVSI from him- thx)
https://listingcenter.nasdaq.com/assets/initialguide.pdf
Table on page 10 (Nasdaq Capital Market Financial and Liquidity Requirements).
Read the middle column - Market Value of Listed Securities Standard.
At the bottom of the table is written: Quote:
* Currently traded companies qualifying solely under the Market Value Standard must meet the $50 million Market Value of Listed Securities and the applicable bid price requirement for 90 consecutive trading days before applying.
** To qualify under the closing price alternative, a company must have: (i) average annual revenues of $6 million for three years, or (ii) net tangible assets of $5 million, or (iii) net tangible assets of $2 million and a 3 year operating history, in addition to satisfying the other financial and liquidity requirements listed above.
Vandy - test 50 would be at $4?
Thanks Mono: not being a trader, I want to say I appreciate Monolith trader point of view- factual on the ups and downs, no hyperbole. This is a new industry and will be very volatile, I think good traders will do well as will longs.
Premarket valuation of CWEB on CSE is $10C putting CVSI at $8 US.
Latex - wrong again. CWEB is worried re CVSI: Page 55 of Charlotte's Web prospectus: "CWB's principal competitors in the CBD wellness products space include dietary supplmenet. topical companies such as CV Sciences (PlusCBD), isoldol...as well as Pharmaceuticals GW Pharmaceuticals and INSYS Pharmaceuticals."
Patents pending too: "CWB currently has a portfolio of pending US Plant, utility, and design patent applications..."
this has been a rough ride. I added a few thousand back in low 3's into the brokerage and ira. Still looking at the fundamentals. I trust the growth up to 6, 10, 15 will take care of the pain from 6 to 3... but end of august uugh.
Thanks Mono. Hoping for a reversal before the low 3s, but time will tell
Monolith, vandy: After a week of punchdrunk CVSI moves I'm cynical about this move to 4.60 in 15 minutes... Would I be crazy to think this is a short paying the ask every time to run the price up for a while and have a bunch to sell in the last hour in rapid fashion? (but who would sell now anyway?) or someone mentioned a reverse hammer earlier? Is this a signal we on the way to close $4.90+? Just curious / trying to learn from those who trade this.
Stores with PlusCBD: if anyone has not done this yet, worthwhile to call 855-PLUS-CBD (758-7223). Helpful phone rep found one in my little hometown and one in town where I work in 10 seconds. (Upstate NY).
You can find it on here- search Stanley under company https://www.sedar.com/FindCompanyDocuments.do
I am long CVSI and will stay that way, but I have to admit the shorts seem in control near term and are quite impressive (in an evil way) how they attack right into the good PR by CVSI -the fact is their lies have eroded a lot of near-term value. (But I'm so old I do remember how excited we were when we crossed $2 on July 23 and $3 on Aug 1. And look forward to where we will be Sept 30.) Today they are really looking for capitulation it seems. I bit my lip and bought some at 4.6 and again at 4.10. Monolith - any idea of what to watch for near term? My lip needs a break after the last week...
awesome
I like to see this - factual, simple, but keeping the eye on the prize.
CV Sciences, Inc. Responds to Class Action Lawsuit
8:45 AM ET 8/28/18 | GlobeNewswire
CV Sciences, Inc. Responds to Class Action Lawsuit
LAS VEGAS, Aug. 28, 2018 (GLOBE NEWSWIRE) -- CV Sciences, Inc. (OTCQB:CVSI) (the "Company", "CV Sciences", "our", "us" or "we") has been informed of a class action lawsuit filed against the Company that alleges violations of federal securities laws. The Company disputes the allegations in the complaint and will vigorously defend this lawsuit.
"We believe that any claims alleging violations of securities laws by the Company are without merit and we intend to vigorously defend our position," stated Joseph Dowling, Chief Executive Officer of CV Sciences.
The lawsuit piggy-backs on allegations made in a public "report" by Citron Research, a firm that sources indicate is run by an activist short seller. Citron issued its report on Monday, August 20(th) , after the Company's stock had risen more than 25% in the day.
Both the Citron report and the newly filed lawsuit allege, in pertinent part, that the Company violated securities laws by failing to disclose that it had received notice from the United States Patent and Trademark Office (USPTO) that its pending patent application, U.S. Patent Application No. 15/426,617 (the '617 Application), had been "finally rejected" by the USPTO. The complaint draws the conclusion that this notice from the USPTO terminated the Company's patent application, and that the Company's efforts to obtain patent protection for the inventions disclosed in the '617 Application have therefore failed.
"The conclusions in the complaint and in the 'report' by Citron Research are outright false, and demonstrate either an ignorance, a disregard, or both, of the basics of patent prosecution," stated Mr. Dowling. "A 'final rejection' in the context of patent prosecution is anything but final. It by no means indicates that the applicant has failed in its efforts to obtain an issued patent." We will continue to prosecute the '617 Application and plan to file and prosecute several more applications related to the inventions described in the '617 Application."
Mr. Dowling continued, "While the end result is not assured, both the Company and our patent counsel at Banner & Witcoff continue to have comfort that we will obtain an issued patent pursuant to the '617 Application."
Any update on Charlotte's Web (CWEB on CSE) trading? Does it start today? I contacted ETrade and they said it will take about 30 days after listing in Canada before it will list in US. Feels like a good comp for CVSI. Fun to see the whole sector on fire right now... for MJ I'm in Aphria.
Charlottes Web looks like it will start trading on Monday and being priced at 7 Canadian. Does anyone else know what it’s sales are? I think they are the leading CBD sales comany and have widest media awareness.
Monolith- do you think all near term news is baked in for over a month? Uplisting, Farm Bill, nov earnings, comp valuations to Charlottes Web, Cron, Tilray, etc? It seems that momentum is still here and any one of these along with some media will push it over 8- 10 quickly.
Vandy, I disagree this is changing the strategy. Its making the process more clear relative to the BS short tweet.
Best answer to Citron = pay off debt. Love it. Answer with money, sales, balance sheet, ignore the BS.
I am long CVSI, but yesterday was humbling reminder how OTC stocks can be so easily manipulated. I got to admit, I was giddy to see the move up to $9 and paper gains of many Ks in 4 hours- that is a rush for non-millionaire types like me. A little embarrassed by that, but added some under 4 at the open today to ease my pain. Others know better that there are other ways shorts may come back at this thing again- more fake lawsuits, fake articles etc. I think many of the irrational people who think this only goes up and were expecting a move from 6 to 10 in a day were actually part of Citron's plan. I am with CashCarl - I'd like a lot of $.20-.30 gain days through the uplist, farm bill, earnings in November. Go CVSI.
Me too - happy my bids were not filled.
For what its worth (aka nothing): I have mine in at $5.30 and $4.95. I am long CVSI with most under $2 and I am not a trader, so I'd be just as pleased if they don't come close to filling.
Looking a little longer term (and trying not to give short term bashers their due) but there is a relatively low barrier to entry in this area ... it seems. I get a good feeling so far that management knows this and is taking advantage of the time and current market leadership position, and financial strength to get out ahead of these risks with the GRAS and Drug Development or other areas/partnerships we have not heard about yet. It seems like turbulence from those challenges *may* be felt early or mid-2019 and beyond? But right now, pretty clear skies... Also, speaking of the other hemp CBD leader, anyone heard when Charlotte's Web starts trading in Canada? (Finally: cheers to longs as we slide over $5.80... that seems close to 6.00...)
Thanks Monolith, AuroraPet and Kswies: my guess of $4.40 was just off the low $4.55. Shows what I know about market timing (nothing). I'll get this last buy in here somewhere around 5 as things settle down. The other discussion of 4-6 weeks from NASDAQ application (july 23?) and the positive news of the constellation investment makes me think we may see Nasdaq late Aug or early Sept before Farm Bill later Sept.
(Vandalay industries: I appreciate you wanting to bring the price down for me, but Constellation is only 9th largest liquor company - I think CVSI as a US based company can find a bigger and better partner soon if they wish with their GRAS advantage....And you want to be my latex salesman...)
I am not a trader or a TA, but I respect those who are reasonable about the value of these tools, so I have a question: I have my bids in at $4.40 and $3.95 because I am watching the near weakness to average up on a good long position here. Do we have a chance to get there today, this week? Is this a reasonable place to set it? Thanks
Thanks Ania. The prospectus I saw said about a week after they close (which was Aug 6) so I was hoping early this week. I think CVSI compares very favorably. Hoping for a CWEB spike so people look at the rest of the CBD mkt. (CWEB is already a Chinese internet ETF, so not sure the ticker on US mkts.)
Hi all: I have been following the board closely since late winter and am want to say thanks to Jefra, Benjo, AP, balding, marty and others for the really solid info. (I am all in since 1.3 with 40,000 shares and averaging up as it holds and strengthens.)
I want to continue discussion of comps - Someone a while back (CashCarl?) posted a Charlotte's Web comp re their offering in Canada. It should start trading this week I think since the pre-ipo offering closed. Yes? https://www.questrade.com/ipo-centre/charlotte-s-web-holdings-inc
Thanks all - onward to 5...