It stays in that range because of the convertible notes. The owners want them converted at lower prices because they get more shares. They short it while they lock in better conversion prices. As they get eliminated (converted), the company gains stronger and stronger footing because the overhang is removed. With a company like this one would hope they have a mid term goal of uplisting to NASDAQ (anyone have insights on that?). They could do a 100:1 RS, which will bump the SP up and the AS down. That would get them to 50m AS and a $10 SP. If in the next 12-18 months they start showing profits AND the federal rules change, this could easily be a 900M cap company, which means SP around 30$.
Am I willing to let money sit for that long? Probably not, but I'll watch and swing trade it.
Is CS CBD better than Hemp CBD, probably, but that doesn't mean there's no business or profits here. Maybe it's used as an additive or dilution/filler for better stock. Maybe they figure our how to mix a little something with it to kick up the entourage effect a little.
If nothing else, I see a small spec play here, but there's some real potential... things could either bleed sideways with pops on the unwinding of conversion shares. OR it could blossom into a really nice play should things "get serious" (i.e uplisting fed regs change etc...)
The risks I see are no more than most- the pro's I see are that they have solid established rev streams that are increasing. The regulation issue alone has great pop potential. It's got steady volume, not huge, but steady, which means it will see "good volume" should solid news occur.
That's my take.
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