The CBD Gold Rush Is Over (And That’s A Great Thing For Consumers)

By Bharat Ayyar

Disclaimer: I am not a financial advisor. Nothing contained in this post should be construed as investment advice.

CV Sciences (OTC: CVSI), the company behind +PlusCBD, had a meteoric rise in 2018.

The U.S. Farm Bill had just passed, legalizing hemp farming across the country. Research firms projected that the CBD industry would to over $20 billion in annual revenues. 

CV Sciences was at the forefront, widely acknowledged to be one of the top two companies in the CBD industry (the other being Charlotte’s Web). At one point in 2019, the company’s market capitalization reached $575 million.

A lot has changed in three years.

The company’s stock price is now down over 99% from its peak in 2019. Its market capitalization is just over $5 million.

Safe to say the gold rush is over?

While the worst may be over for CV Sciences, the stock could easily go to zero. And that’d be a great thing for consumers.

What Happened to CV Sciences?

CV Sciences used to be a leading company. At one point in 2019, they had nearly $16M in cash. They’re down to ~$2.5M now. (The uptick last quarter was from raising $1.4M from investors via convertible notes.)

A low cash balance

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