CV Sciences Archives - Green Market Report

StaffNovember 15, 2021


CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the quarter ended September 30, 2021, with revenue falling 8% to $5.1 million for the third quarter of 2021 versus $5.6 million for the third quarter of 2020. CV Sciences said that sales were hurt by increased market competition, which was largely due to the uncertain regulatory environment for CBD.

The company had negative adjusted EBITDA for the third quarter of 2021 of $2.7 million, compared to negative adjusted EBITDA of $2.6 million in the third quarter of 2020. The company’s operating expenses of $5.3 million are higher than the income of $5.1 million, but the company managed to trim its net losses in the quarter to $40,000.

“Third quarter results met our expectations and we are very encouraged by recent legislative actions including the passage of AB 45 in California, which creates a framework for responsible CBD legalization on a much broader scale,” said Joseph Dowling, Chief Executive Officer. “We delivered third quarter revenue of $5.1 million, consistent with Q2, and continue to improve our cost structure versus a year ago as we continued to benefit from productivity initiatives. We recently launched our PlusCBD™ Reserve collection, a full spectrum offering that is intended to provide the benefit of hemp cannabinoids, including CBD to THC, working synergistically, for a balanced cannabinoid supplement. The new Reserve products, along with our Sleep and Calm products launched earlier this year, are evidence of our strong innovation pipeline and ability to capitalize on opportunities for future incremental revenue. With our portfolio of high-quality, proven products, and favorable regulatory momentum, we believe the Company is positioned for growth in 2022.”

Convertible Note Announced

The total cash balance was $1.7 million at the quarter-end versus $4.5 million at year-end. CV Sciences also announced that it has entered into a securities purchase agreement with an institutional investor, providing for the sale and issuance of convertible notes due 2022 in the aggregate original principal amount of $1.06 million. The company also said it may offer and sell up to an additional $4,240,000 in aggregate principal amount of notes at additional closings, resulting in potential gross proceeds for this offering and such additional offerings, of approximately $5.3 million. CV Sciences said it plans to use the net proceeds of approximately $1 million for general corporate purposes which may include, without limitation, funding of product development, sales and marketing activities, increasing the company’s working capital and investment in its products and intellectual property in order to accelerate growth.


StaffMay 8, 2020


Arena Pharmaceuticals

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today provided a corporate update and reported financial results for the first quarter ended March 31, 2020. Revenues for the first quarter totaled $0.3 million compared to $801.1 million in the first quarter of 2019. This decrease was driven by the $800.0 million upfront payment from the United Therapeutics transaction in the first quarter of 2019.

Research and development (R&D) expenses for the first quarter totaled $78.5 million compared to $45.4 million in the same period in 2019. This increase was primarily driven by advancing clinical studies, including the etrasimod Phase 3 program, as well as an increase in personnel expenses as we staff to support our clinical programs. The R&D non-cash share-based compensation was $6.6 million in the first quarter as compared to $6.7 million in the same period 2019
General and administrative (G&A) expenses for the first quarter totaled $26.4 million, compared to $16.6 million in the first quarter of 2019. This increase is primarily attributed to personnel expenses including share-based compensation. The G&A non-cash share-based compensation was $8.6 million in the first quarter as compared to $6.3 million in the same period 2019

Net loss for the first quarter was $100.2 million compared to net income of $620.1 million for the same period in 2019. In connection with the United Therapeutics transaction, we incurred transaction fees of approximately $17.0 million, of which $14.6 million was incurred in the first quarter of 2019, and was presented as transaction costs in the condensed consolidated statement of operations

“We are pleased to announce that our ongoing clinical programs are currently on track and our liquidity position remains strong with approximately one billion dollars in cash and investments. While maintaining momentum has not been easy, and we – along with the rest of the industry – have experienced a slowing in clinical trial operations, including site activations, our teams have been actively monitoring our ongoing trials day-by-day to ensure patient safety, study momentum and conduct, and drug supply. Additionally, prior to the COVID-19 outbreak, our programs were well ahead of schedule, giving us an important buffer to weather the storm. Finally, given the broad clinical site base across our programs, we are also monitoring certain countries and regions as they begin to lift restrictions. We continue to evaluate the situation in real-time and we will provide further updates frequently as circumstances evolve,” said Amit D. Munshi, President, and CEO of Arena.

CV Sciences

CV Sciences, Inc. (CVSI) announced its financial results for the first quarter ending March 31, 2020, with sales falling to $8.3 million, a decrease of 45% from $14.9 million in the first quarter of 2019. First-quarter sales were impacted by increased market competition in the natural product category, the continued impact on retail customers as a result of the uncertain regulatory environment for CBD, and the impact from the current COVID-19 pandemic.

The Company recognized an operating loss of $5.3 million in the first quarter of 2020, compared to an operating loss of $9.4 million in the prior year. The Company had a negative adjusted EBITDA for the first quarter of 2020 of $3.9 million, compared to adjusted EBITDA of $1.7 million for the first quarter of 2019.

The company’s retail store count increased to 5,799 stores nationwide as of March 31, 2020, up from 3,308 stores as of March 31, 2019, but apparently this didn’t result in increased sales.

“Over the past months, we have taken quick action to right-size our operations for the near-term industry outlook and to adapt our operations for the ever-changing operating environment created by the current global health crisis. Our production and distribution facilities continue to operate without interruption and our entire team of dedicated employees has risen to the challenge to ensure that we continue to deliver the highest quality hemp-derived CBD products on the market,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.

22nd Century

22nd Century Group, Inc. (NYSE American: XXII)  reported results for the first quarter ended March 31, 2020. Net sales revenue for the first quarter of 2020 was $7.1 million, an increase of $0.8 million, or 12.1%, over net sales revenue of $6.3 million during the first quarter of 2019. The increase was driven primarily by sales relating to contract manufactured cigarettes.

The Company experienced a net loss for the first quarter of 2020 of $4.0 million, representing a net loss per share of ($0.03) as compared to a net loss of $2.1 million, or a net loss per share of ($0.02) for the first quarter of 2019. The increased net loss for the first quarter was due primarily to a change in the fair value of warrants held by the Company in Aurora Cannabis, Inc.

Adjusted EBITDA was negative $3.2 million, or ($0.02) per share, for the first quarter of 2020, as compared to a negative Adjusted EBITDA of $4.6 million, or ($0.04) per share, for the first quarter of 2019, a decrease in the negative Adjusted EBITDA of $1.4 million, or 30%.

Debra BorchardtMarch 16, 2020


Hemp CBD company CV Sciences, Inc. (OTCQB:CVSI)  announced its financial results for the year ended December 31, 2019, with total revenue of $53.7 million for the fiscal year 2019. During the fourth quarter of 2019, sales declined 34% to $9.4 million compared to $14.2 million in the prior-year period. The company blamed the decline on increased market competition in the natural product category and the continued impact on retail customers as a result of the uncertain regulatory environment for CBD.

Even more concerning is that CV Sciences said that it expects revenue to drop sequentially to the range of $6-8 million in the first quarter of fiscal 2020. The fiscal year non-GAAP EPS of $0.00 missed by $0.01 and the GAAP EPS of -$0.17 missed by $0.07.

Still, the company delivered an operating loss of $17.2 million in 2019, compared to an operating income of $10.2 million in the prior year. The decline in operating income is primarily related to additional stock-based compensation and payroll expense associated with the separation of the company’s founders of $11.1 million, and additional investment in sales, marketing, and R&D activities.

“In the face of near-term headwinds, including regulatory ambiguities, heightened competition aided by a lack of regulatory clarity, and occasional unfavorable media attention as the regulatory environment develops, CV Sciences managed to achieve the highest annual sales in our company history. We are focused on further strengthening our brand, product offerings and adding new categories as we monitor the ongoing development of the market and position ourselves for future opportunities,”   stated Joseph Dowling, Chief Executive Officer of CV Sciences. “We continue to work with the FDA to support market development and ensure CV Sciences is leading the industry in quality and safety.  We are confident that FDA regulatory clarity will lead to a ‘flight to quality’ among both retailers and consumers and believe that CV Sciences is best positioned to secure long-term brand loyalty and trust due to our proven track record and relentless focus on quality, safety, and regulatory compliance.”

The company reported that its total retail distribution increased to more than 5,500 stores as of December 31, 2019, a 148% increase from December 31, 2018, including new and/or expanded partnerships with national retail chains. The gross margin was 65% for the fiscal year 2019 and the reported a total cash balance of $9.6 million at year-end.

Dowling added, “As we look towards 2020, we are aggressively adapting to the business environment, working to manage costs while further building distribution and driving innovation. These efforts include a temporary delay of our drug development efforts. We anticipate that the near-term challenges will continue, but we are confident in our ability to navigate the market and align our financial model to the current environment. We remain focused on the long term and are committed to positioning our business to capitalize on the promising future for the hemp-derived CBD market.”

William SumnerAugust 7, 2019


It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site


Online cannabis wholesale marketplace, LeafLink announced the completion of a $35M Series B round of funding. The round was led by Thrive Capital. Current investors Nosara Capital, Lerer Hippeau, Wisdom VC, and Thought Into Action Ventures also participated in the round alongside L2 Ventures.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company. “This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD.

Guest Post: The Legal Status of CBD Oil in Italy

The issue of legalisation of cannabis and its derived products has been under discussion for decades in Italy. However, with each passing year, the legal status of cannabis and CBD products only gets murkier.

In Other News

Pasha Brands

Pasha Brands Ltd. (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD) announced that it has secured eligibility from the Depository Trust Company (DTC) to list its shares on the OTC Markets. “We are very pleased to have obtained DTC eligibility,” said Patrick Brauckmann , Executive Chairman of Pasha Brands. “This status will make the process of trading our stock in the United States much easier. We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Pasha and our shareholders.”

GW Pharmaceuticals

After the market close yesterday, GW Pharmaceuticals (NASDAQ: GWPH) announced that it has released its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $72 million, the vast majority of which was generated from sales of CBD-based drug Epidiolex ($68.4 million). Net income was $79.7 million, up from a net loss of $84 million in the same period of the previous year. “We are pleased to report a strong second quarter of sales of Epidiolex in the US, reflecting high demand by US patients, increased prescribing by healthcare providers, and ongoing progress in payor coverage determinations,” said GW CEO Justin Gover. “In Europe, we are pleased to have recently received the positive opinion from the CHMP which clears the way for an expected approval in October.”

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) announced the release of its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $16.9 million, representing an increase of 36% over the same period in the previous year. The gross margin improved slightly, rising from 70.8% to 70.9%. Operating income was $1.3 million. “We remain highly confident in the long-term growth of hemp-based CBD and will continue to lead the industry in quality, innovation and both regulatory adherence and support as the market develops,” commented CV Sciences CEO Joseph Dowling.

StaffAugust 6, 2019


It’s time for your Daily Hit of cannabis financial news for August 6, 2019.

On The Site

GW Pharmaceuticals

British biotech firm GW Pharmaceuticals pls (NASDAQ: GWPH) second-quarter net sales of $68.4 million of the company’s cannabis-related drug Epidiolex, which is prescribed for children with rare epilepsy diseases. For the first half of 2019, GW Pharmaceuticals has sold $109 million of the drug. The good news sent the stock higher by over 10% in aftermarket trading to lately trade near $170.

The company delivered $72.0 million in revenue for the quarter ending June 30, 2019 versus $3.3 million for last year’s quarter for the same time period. Net income for the quarter was $79.7 million versus a net loss of $84.0 million for last year’s quarter. The cash and cash equivalents on June 30, 2019, were $583.7 million.


Australian-based Zynerba Pharmaceuticals Inc. (ZYNE) delivered second-quarter results and updates on the company’s drugs including its CBD (cannabidiol) gel. The general and administrative expenses for Zynerba during the second quarter of 2019 were $3.3 million, including stock-based compensation expense of $0.8 million. The net loss for the second quarter of 2019 was $11.1 million with a basic and diluted net loss per share of $(0.50).

The company announced that the U.S. Patent and Trademark Office issued U.S. Patent No. 10,314,792 titled “Treatment of Autism Spectrum Disorder with Cannabidiol” which includes claims directed to methods of treating autism spectrum disorder by administering a therapeutically effective amount of synthetic cannabidiol. This new patent expires in 2038 and is part of an expanding intellectual property portfolio covering Zygel.

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE | TSX: ACB) gave an update on selected financial metrics for the fourth quarter of the company’s fiscal 2019 period ending June 30, 2019. While the information is selectively limited, Aurora said it feels it is being transparent by releasing the data and that the full results will be published prior to September 15, 2019. The company did not report any expense figures or any data relating to net profits or losses. The stock seemed to get a boost as the price was lifted by 5% in premarket trading.

Credit Unions

Last week Ohio Gov. Mike DeWine signed a bill that will allow credit unions and other financial institutions to service businesses that cultivate hemp and sell cannabidiol products as long as there is no more than 0.3% of THC. This week, NCUA (National Credit Union Association) Chairman Rodney Hood said that credit unions won’t be sanctioned for servicing cannabis-related accounts as long as they adhere to money laundering rules.

“It’s a business decision for the credit unions if they want to take the deposits,” Hood told the Credit Union Times. He added, “We don’t get involved with micro-managing credit unions.” Hood also told the CU Times that Congress could remove all ambiguity if it enacted legislation to declassify marijuana.

In Other News

CV Sciences

CV Sciences’ Q2 earnings release: The company reported revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018. 14 consecutive quarters of sequential revenue growth. Gross margin improved to 70.9% from 70.8% in the first quarter of 2019. Retail distribution increased to 4,591 stores as of June 30, 2019, a 39% increase from March 31, 2019.

Broadened retail presence into the food, drug and mass channel and in active discussions for further expansion of the PlusCBD™ Oil brand. Generated $2.7 million of cash from operations, with total cash balance increasing to $15.7 million at quarter-end. Dismissal of class action suit which was originally filed in 2014. Announced planned 500% increase in production capacity with the addition of new 45,500 square foot facility. Initiated domestic sourcing efforts, committing to more than 500 acres of U.S. Hemp Production to support future sales.


TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) signed a definitive agreement to acquire Ilera Healthcare, one of five vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania, with such vertically-integrated licenses, also referred to as “Super Licenses” in the state.

TerrAscend has agreed to acquire 100% of the equity of Ilera for total consideration of between US$125-$225 million, paid in a combination of cash and TerrAscend shares. On closing, TerrAscend will pay to the sellers US$25 million in cash, subject to customary closing adjustments, and an additional US$25 million worth of proportionate voting shares in the equity of TerrAscend equivalent to approximately 5,059.102 proportionate voting shares (which are each exchangeable for 1,000 TerrAscend common shares, being issued at an issuance price of US$ 4.94 per share, based on the 45 day volume-weighted average trading price of TerrAscend’s common shares as of Monday, July 29, 2019 of C$6.5307 and an exchange rate of C$1.3216 per US$1.00). The additional cash consideration of up to US$175 million2 in aggregate may be paid to the sellers based on Ilera achieving certain specified revenue and profitability targets, with staged payments being made in 2020 and 2021. The transaction is expected to close in the 4th quarter of 2019, subject to regulatory approvals by the Pennsylvania Department of Health as well as certain customary closing conditions.


Medical marijuana is now legally available to Louisiana patients, with Baton Rouge’s Capitol Wellness Solutions recording the state’s first-ever regulated medical-cannabis sales transaction at the dispensary’s grand opening today. Three patients were the first to benefit from the state’s new regulated medical program, including two cancer patients and the first veteran in the state to be able to utilize medical marijuana to treat symptoms of PTSD.

Anne-Marie FischerJuly 31, 2019


According to Brightfield Group, the CBD market in the U.S. has grown over 700% in 2019.

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time.

Nevertheless, the top 20 CBD companies still hold a majority of the even bigger pie that is CBD in the cannabis industry. 

Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies:


  • CW Hemp (Charlotte’s Web)


Earlier this summer, Charlotte’s Web Holdings (TSX:CWEB)(OTCQX:CWBHF) announced that their total acres of hemp planted for the 2019 growing season had increased 187% due to interest and demand for the products. Prior to that, the company reported its earnings for the first quarter with revenue growing 66% to $21.7 million. 

“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” stated Deanie Elsner, CEO of Charlotte’s Web. “Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan.”

Brightfield Group remarked of the company: “By deeply understanding who they are as a brand and identifying the consumers that resonate with their messaging, they have built the foundation for potentially life-long customers and advocates.”

  1. PlusCBD Oil (CV Sciences)

PlusCBD Oil by CV Sciences (OTCMKTS: CVSI) has found success largely due to their low-dose capsule and softgel formats that Brightfield Group referred to as “a safe bet for more conservative users”. Green Market Report has been watching the steady increase in CV Science’s company value following last year’s impressive sales jump of 203% in the second quarter. 

The company is expected to announce its second-quarter results for 2019 on August 6. 

        3. Green Roads World

Green Roads offers unique, high-dose products, and have built their success on effective social strategies. With a growing employee base of over 100 the company had an estimated value of $45 million in 2018, according to co-founder Arby Boroso. 

The company sells CBD-infused products such as tinctures and balms, online and in 6,000 stores and 2,000 doctors’ offices across the country. Brightfield attributes their “values-based marketing” to their success and prominence in the CBD industry. 

  1. Medterra

Medterra’s growth is largely due to its effective SEO strategy and marketing. With a site that is full of engaging content that manages to get past the limitations of search engines, Medterra gets itself in front of the eyes of consumers.

The company recently announced a foray into the sports, fitness and golf communities, by partnering with Worldwide Golf Shops, the parent company to Edwin Watts, Roger Dunn, and some of the most well-known and established golf retail stores in the United States. 

  1. Irwin Naturals

Irwin Naturals turned heads when Klee Irwin, the founder of the company announced the company would be giving away $1M worth of CBD products to honor the passing of the Farm Bill. 

The company is concerned with making the cost of CBD products affordable, saying “Our mission is to spread health to the world through plant medicine. Our nation is on the edge. And I am worried about the future of our children. If we can make CBD affordable and accessible to the masses, it just might help our country avoid a meltdown.”

Groups of Competitors in the CBD Market

Brightfield Group laid out the different types of companies and brands that are continuing to lead the pack when it comes to innovative marketing, advanced products, and ways to stick out in the market. These companies are those who are:

  • CBD-only companies that have established brand loyalty, improved marketing strategies, and grow larger and more diverse customer bases
  • Cannabis companies including multi-state operators that leverage networks and infrastructure to build brand recognition and raise capital to expand CBD lines
  • Supplement brands existing in the natural food store and retail chain space
  • Disruptor brands that were little-known prior to this year and have risen up in the ranks as they’ve been picked up by large retail chains

As it is only still summer, it remains anyone’s game as to who will end up at the finish line in the CBD brand race by the end of the year.  

StaffMarch 12, 2019


It’s time for your Daily Hit of cannabis financial news for March 12, 2019.

On The Site

Corbus Pharmaceuticals

Synthetic cannabis pharmaceutical company Corbus Pharmaceuticals Holdings Inc.(CRBP) reported earnings for the fourth quarter and the full year ending in December. For the quarter, Corbus delivered a net loss of approximately $17,306,000 or a net loss per diluted share of $0.30, compared to a net loss of approximately $10,694,000, or a net loss per diluted share of $0.20, for the same time period last year.

Revenue from awards for the quarter was $1.9 million. For the full year, revenue from awards increased by approximately $2.4 million to $4.8 million due to revenue recognized from the up to $25 million Development Award Agreement with the Cystic Fibrosis Foundation.

In Other News

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) reported its financial results for the year ended December 31, 2018.The company delivered revenue of $48.2 million for 2018, an increase of 133% over 2017. The company also reported net income of $10.0 million, or $0.09 per fully diluted share. The adjusted EBITDA of $14.0 million or 29.0% of net revenue for 2018, was an increase of $12.4 million from $1.6 million for 2017.

Retail distribution increases to 2,238 stores as of December 31, 2018, a 45% increase over the prior year. The company generated $12.6 million of cash from operations, with cash balance increasing to $12.7 million at year-end.

“We finished 2018 with strong sales momentum and enter 2019 well positioned to capitalize on the rapidly growing consumer awareness and broad-based demand for hemp CBD products. We generated 133% revenue growth during 2018 and expanded the availability of the PlusCBD™ brand to over 2,200 stores nationwide,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.


KushCo Holdings, (KHSB) the cannabis industry’s largest and most respected distributor of packaging, supplies, and accessories for the regulated cannabis industry, announced today it has signed a long-term development and distribution agreement with IEKO Corporation for the production of compostable and biodegradable packaging products for use in the cannabis and CBD industries.


Choom Holdings USA Inc., (CSE: CHOO) (OTCQB: CHOOF) has signed a letter of intent to purchase an equity interest in a New Jersey-based medical retail dispensary applicant in New Jersey’s upcoming Request of Applications that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020.


PAO Group, Inc. (OTC: PAOG), announced that itis moving forward with the acquisition of a cannabis grow and processing lab operation in Romulus, MI. PAOG announced it officially appointed Andres Fernandez as our new Chief Marketing Officer.


Cannamerica Brands Corp. (CSE: CANA) (OTCQB: CNNXF)  entered into a binding letter of intent to create a joint venture with Sericea Labs S.A. de C.V.and CBDistribution Company Ltd.  with the intention of building a facility in Mexico for importing and warehousing licensed CBD products as well as CBD oils and tinctures destined for refining.

Debra BorchardtAugust 28, 2018


CV Sciences, Inc. (CVSI) issued a statement denying that it had violated securities laws. The statement stemmed from a claim by Citron Research that CV Sciences had a patent application rejected by the United States Patent and Trademark Office (USPTO).

Initially, CV Sciences stock popped 25% in one day prompting Citron to release the negative report on August 20. The stock actually jumped around considerably over a few days. On August 17, the stock opened at $5.62 and then closed up at $6.61 on a normal volume of roughly six million shares.

The following trading day when the report was released on August 20, the stock plunged from an open of $6.91 down to $4.21 on 29 million shares traded. On the following day, the stock opened at $4.05 to close at $5.58 on 11 million shares.

According to a company statement, the Citron report alleges that CV Sciences violated securities laws by failing to disclose that it had received notice from the USPTO that its pending patent application, U.S. Patent Application No. 15/426,617, 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.

Citron sent a Tweet that said,

misrepresentation by management. The total bull case is based on REJECTED patents the company has never disclosed and continues to hype. Securities Fraud? Another IRTH special

Following the Citron report, a class action lawsuit was filed on behalf of shareholders that alleges that same violation.

“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.

It was suggested that Citron is a short seller who would benefit if the stock price fell.

“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.”

CV Sciences didn’t address whether it had properly disclosed the patent application transaction history. The stock fell an additional 13% on the denial and was lately trading at $4.30.

William SumnerAugust 1, 2018


CV Sciences (CVSI), a company dedicated to developing CBD oil products and novel therapeutics utilizing synthetic CBD, today announced its financial results for the second quarter, which ended on June 30, 2018. The stock popped almost 5% on the news sending the price to approximately $3.31 for a 52-week high. Most recently the company announced that it has applied to list its stock on the NASDAQ Capital Market.

Overall results were positive. Sales for the quarter rose to $12.3 million, representing a 203% increase compared to the same period last year and a 53% increase over the previous quarter.

Gross profit for the quarter was $9.06 million, compared to $2.8 million in the same period last year, and its GAAP net income was $3.1 million. The company’s EBITDA for the quarter was $3.3 million, and its Adjusted EBITDA was $3.8 million. During the same quarter last year, the company’s EBITDA was $811,488, and its Adjusted EBITDA was 280,939.

Over the last quarter, the company increased its retail distribution channels by 11% to 1,968 stores nationwide. The company increased its cash position by $3.3 million in the second quarter, with approximately $6.4 million in unrestricted cash and $7.2 million in total cash.

On August 1, 2018, the company will hold a conference call, led by CV Sciences CEO Joseph Dowling, to provide an operational and financial summary of the second quarter and year-to-date results. The call begins at 4:15 PM EDT and will be available for live stream on the company’s website. For those unable to attend, a recording of the call will be made available for the following two weeks.

“CV Sciences delivered strong financial results for the second quarter of 2018, including our second consecutive quarter of profitability. We also reported record key performance metrics that include triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison,” said CV Sciences CEO, Joseph Dowling, in a statement. “To date, we have been able to successfully execute our planned strategy of aggressively and consistently growing our sales distribution channels, further penetrate the market and increase our market share within the natural products industry…”

StaffJuly 25, 2018


It’s time for your Daily Hit of cannabis financial news for July 25, 2018.

On the Site

New Mexico Sales

Though marijuana remains illegal in New Mexico for recreational use, the growth seen for medicinal purposes has surged in 2018, surpassing $50 million in sales, due in large part to a huge rise in patient enrollments.

According to data compiled by the New Mexico Department of Health (NMDOH), the 35 commercial cannabis producers in the state reported $51 million in sales in the first six months of the year. That marks a 27 percent increase year-over-year.

Nutritional High

On July 3, Nutritional High International Inc. (SPLIF) published a press release boasting Q3 revenues of $2,680,444 CAD, an increase of 408% over Q3 2017. That figure, however, differs from the Q3 financial statements Nutritional High filed with SEDAR. Nutritional High’s formal financial statements show lower 2018 Q3 earnings and the discrepancy remains unaccounted for. Nutritional High did not respond to a request for comment.

In March, Nutritional High acquired Calyx Brands Inc., a California-based distributor, for $3,433,784 CAD. In Q3, Calyx Brands posted sales $1,674,269 CAD, accounting for the majority of Nutritional High’s Q3 2018 revenue. This number is not misstated in Nutritional High’s July 3 press release.

In Other News

MedMen Enterprises

MedMen Enterprises Inc. (MMEN.CN) (MMNFF) and The Hacienda Company announced that MedMen has completed a strategic investment in The Hacienda Company, which owns Lowell Herb Co., a California-based cannabis brand known for its pack of pre-rolls called Lowell Smokes.

“Lowell shares a similar vision with MedMen that recognizes cannabis as a consumer product,” said Adam Bierman, MedMen CEO and co-founder. “As we continue to build and promote the MedMen retail experience, we believe that investing in top cannabis consumer brands like Lowell furthers our efforts to secure a loyal consumer base in this nascent industry while delivering growth and long-term value to our shareholders.”

Radient Technologies Inc.

Radient Technologies Inc.  (TSXV:RTI) has released its financial results for the fiscal year ended March 31, 2018. The filing read, “The Company has incurred significant losses and generated no significant revenues in its recent history. The Company had a cumulative deficit of $62,010,103 as of March 31, 2018. As a growing business, Radient will likely need more capital than it currently has. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing.”

Still, the company’s cash balance as of March 31, 2018, was approximately $21.9 million, up from $11.4 million on March 31, 2017. Long-term debt of over $8.1 million as of March 31, 2017, was extinguished through a series of pay-downs and restructuring initiatives. The Company completed a private placement with Aurora Cannabis Inc. (ACBFF) for gross proceeds of $6.2 million. Aurora also converted its $2 million convertible debenture into 14.2 million units comprising of one common share and one common share purchase warrant

Novus Acquisition and Development, Corp.

Novus Acquisition and Development, Corp. ( NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation’s first carrier/aggregator offering a cannabis health plan announced continued expansion of its cannabis dispensary network that carries Novus Cannabis MedPlan in the U.S. The company has successfully added 13 dispensaries, cultivators, and manufacturers that offer anywhere from 30% to 50% on cannabis medications to the Novus Cannabis MedPlan patient member base.

CV Sciences Inc.

CV Sciences, Inc. (CVSI) announced unaudited second quarter 2018 revenue and selected business highlights for the quarter ended June 30, 2018. Second quarter 2018 revenue is expected to be $12.3 million, up 203% compared to the second quarter of 2017, and a 53% sequential increase over Q1 2018. Company increased retail store count to 1,968 natural and organic health food stores as of June 30, 2018, representing an 11.1% sequential increase over the company’s retail store count for the first quarter.

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