Replies to post #5119 on CV Sciences Inc (CVSI)

[Mccpingins]

Good article the product is going to be huge it's just who makes it work best?

[Det_Robert_Thorne]

Maybe something, but take look at CANV's financials

I've been following CannaVest/CV Sciences since it bought the Phytosphere CBD-from-industrial-hemp operation from Medical Marijuana, Inc in Dec, 2012.

Medical Marijuana used to distribute CANV's products through its HempMeds distribution company, both online and via retail until the two companies "broke up" in August, 2014.

I remember reading many breathless articles like this one, and maybe the market for CBD from hemp will grow, but right now, there are at least four competitors producing hemp-derived CBD in the marketplace, CannaVest, Endoca, Isodiol and Bluebird Botanicals. I pulled those names off the top of my head since I've known about them for months. I'm sure a little research would show up a few more manufacturers.

And of course, that doesn't count the companies in the legal marijuana states that are extracting CBD from marijuana strains like Charlotte's Web and R4.

If you look at CANV's financial results, revenues in 2013 were about $2.2M, while 2014 revs were $10.2M (despite the collapse of the relationship with Medical Marijuana). In the first nine months of 2015, CANV hit $9.3M, but $2M of that was the leftover inventory of hempmeds and Kannaway products sold to MJNA in 3Q/15, and that's a one-time deal.

Factor out that $2M, then CANV's first-nine-months revenue was $7.3M, which is slightly less than the $7.5M sold in the first nine months of 2014.

Like I said, they're going to really have to pick up the pace, but with the other competition in the mix, it's going to be a dogfight, and the notes won't be paid off with revenue from sales.

Finally, regarding dilution, on Oct 6, 2015, CANV filed a form S-8 with the SEC that it was registering 10M shares for use in its employee incentive program. Options for a couple of million shares have already been awarded to CEO Mona.

I suspect that by now there are at least 39M - 40M outstanding shares, an increase of 4M - 5M over the 35M reported in the 3Q/15 10-Q (as of November 16, 2015).