CV Sciences Inc (CVSI)

[motorcity]

What would a buyout be valued at?

Lots of opinions but here's a real life example to use as a comparison.

https://www.newcannabisventures.com/village-farms-enters-u-s-cbd-market-with-75-million-acquisition/

I can't find 2020 sales for cbdistillery but they expect 30m in 2022, and I saw an estimate of $20m in 2020. So I think it's fair to say they are similar or slightly higher in revenue to CVSI. However they look more asset heavy for better or worse.

Their DTC looks much better. In fact I'd say hands down it's superior.

Paying $75m for what is expected to be $30m annual revenue puts some reality into what the CVSI supplements division is worth.

If we use this percentage on CVSI, assuming $25m revs in 2022, and I expect they will use the full $10m available by selling shares, they could sell for $62.5M and have roughly 125-130m shares outstanding. This works out to about 50 cents a share depending on how many they sell to keep afloat.

Honestly seeing this sale is kind of depressing but I think it puts in perspective the competitive landscape.