CV Sciences and Their Connection to Cannabis

CV Sciences is fast becoming a disruptor in the cannabis growing business. If you haven’t heard of them, you will soon. Their burgeoning company is sending shock waves throughout the industry. Although they have boasted modest stock gains, speculators are expecting the company’s value to skyrocket within the next five years.

As cannabis continues to become a less volatile issue politically, their company may continue to grow and expand. Their philosophy of smoking cessation with the support of cannabidiol may be a hit with consumers looking for nicotine alternatives.

Their most compelling product for investors is currently a combination of CBD and nicotine within a single product, CVSI-007. As studies continue to affirm the debilitating effects of nicotine smoking, the company is hoping to leverage this with an ever-expanding CBD market.

They also market a variety of CBD-based products under the brand name “Swanson.” The Swanson line features not just CBD-based products such as CBD oils and supplements, but also ginger teas, non-CBD organic wellness products, and over-the-counter homeopathic remedies.

What Is CBD?

CBD or cannabidiol is a significant component in cannabis. Another main compound is THC. THC is responsible for the feeling of being “high.” Unlike THC, CBD doesn’t contain the same psychoactive profile. Instead, CBD impacts the body in ways that do not affect cognition.

CBD works indirectly with the endocannabinoid system or ECS. The endocannabinoid system plays an essential part in regulating the body. The ECS controls critical processes such as memory, movement, mood, temperature, and pain. The ECS describes the intricate system of nerve endings and nerve cells that help to relay signals to the brain.

Once signals come to the brain via neurotransmitters, they are interpreted and acted upon in a variety of ways. Neurotransmitters include chemicals such as serotonin and dopamine. The brain receives valuable information from these chemicals that aid it in determining how to keep the body at optimal homeostasis.

Emerging research indicates that CBD may support many of the body’s critical functions. The USDA and the World Health Organization consider CBD as safe for consumption in foodstuffs and other products. The passage of the Farm Bill in 2018 also made CBD derived from hemp legal in most places.

This turn of events has led many companies such as CV Sciences to develop CBD-based products. Many individuals use these products as alternative treatments to over-the-counter medications and prescription medicine. Many cite CBD in the mitigation of a variety of symptoms, including insomnia, muscle aches, and pains, depression, stress, and anxiety.

Who Is CV Sciences?

cv sciences cbd

True to their name, CV Sciences is striving to operate in ways that blend both science consumer product division. The company has devised its structure in two ways. It functions as a pharmaceutical organization as well as a group that focuses on drug development.

They staff an advisory board to stay on top of advancements in both the cannabis industry and the scientific arena. The advisory board consists of medical experts as well as employees that know how cannabis should be grown and cultivated.

The CV Sciences consumer product division is responsible for the marketing and selling of their CBD-based products to consumers around the world. Their pharmaceutical division will focus on developing new products.

They boast a California-based facility that has up to a 45,000 square foot area. They currently have nearly 4,591 stores carrying their items. CV Sciences has on hand more than 500 acres of land to grow hemp.

This hemp will serve as the basis for many of their current and upcoming hemp-derived enterprises. The company hopes that increasing the amount of hemp on hand will reduce their overheads and increase their viability in a competitive market.

CV Sciences has garnered the Generally Recognized as Safe status. The FDA often gives GRAS to companies to affirm the overall safety of the consumer products sold. In fact, CV Sciences is one of only a few CBD companies to be awarded the GRAS.

CV Science Founders

CV Sciences was founded by father and son, Michael Mona Jr. and Michael Mona III. They partnered with key organizations and businesses following the legalization of hemp-derived CBD. They also donated seeds to Murray State University in Kentucky.

This strategic move allowed the company to have a market in a state where cannabis is still illegal. It appears that the company is looking to gain a foothold in Kentucky by forging relationships, including working alongside the Kentucky Hemp Industries Council.

We don’t know much about Michael Mona III, who acts as Chief Operating Officer. After studying at the University of San Diego until 2009, he was given a position alongside his father, Michael Mona Jr., at CV Sciences.

Issues and Problems

Not all is roses with CV Sciences. In 2017, Michael Mona Jr., the CEO of CV Sciences, was hit with an SEC lawsuit. The SEC, or Security Exchange Commission, oversees corporate and business transactions, particularly ties to securities and trading. CV Sciences (also formerly known as Cannavest), was accused of fraud in connection with the acquisition of the company Phytosphere Systems.

Phytosphere Systems was said to be valued at 8 million dollars, much lower than the 35 million reported by CV Science’s financial reports. According to the SEC, this violates federal trade laws. This practice often makes companies more attractive to investors by inflating valuation prices.

The SEC further claims that due financial diligence was not observed. They allege that CV Sciences did not take any steps to evaluate the company or go through the best business practices that many companies amid an acquisition perform.

The SEC charges were later reconciled after Michael Mona Jr. agreed to pay $150,000 without admitting wrongdoing. The SEC also prohibited Michael Mona Jr. from continuing his role as CEO for five years. As a result, in 2018, Michael Mona Jr. stepped down as CEO and now works for the company solely as an employee. Joseph Dowling replaced Michael Mona Jr. as the new CEO.

Distribution Deals

CV Sciences has also crafted a few lucrative deals with major retailers. Recently, they announced that they would be working alongside supermarket giant Harris Teeter. Harris Teeter has agreed to carry many of their consumer products, including many of their PlusCBD Oil creations.

The agreement calls for the distribution of CV Sciences’ products across a variety of states in the U.S. in 150 stores. These states include areas in North Carolina, South Carolina, Florida, Maryland, and Virginia.

As recently as June, CV Sciences also had an agreement with Kroger, a supermarket chain that has stores across the United States. CV Sciences and Kroger amended the partnership in July and expanded the terms of the original agreement.

Products and Services

CV Science has a plethora of products. They have utilized a CBD oil formula and have capsules, soft gels, balms, sprays, and drops. They offer free shipping on orders over $75, and the oils have little to no THC, a primary factor in psychoactive effects in cannabis.

The CV Science Plus CBD Oil site also offers educational videos and a blog to help many others understand how CBD functions in the body. The site features a glossary of terms regarding CBD, cannabis, and the body’s endocannabinoid system or ECS. The company also offers a monthly newsletter to consumers.

Final Thoughts on CV Sciences

As CBD becomes more affordable and prolific, companies seek to create products that match consumer demand. CV Sciences has made strides in partnering with major companies to distribute across the States. For an emerging industry, this is lucrative and significant.

By leading the way in distribution and marketing, CV Sciences could make CBD a staple within American life. Enhancing CBD’s viability in a formerly resistant market will create opportunities, including jobs and CBD-based services. It may also lead to research that can verify CBD’s effects.

Despite these outcomes, there is a concern that CV Science may relegate smaller outfits to the margins of the industry. Individuals without connections or deep pockets may not be able to afford the licensing required to set up or navigate the confusing rules and regulations.

There is fear that companies such as CV Sciences can ultimately impact CBD in unbeneficial ways. By taking away the smaller and less monied operations that deal with CBD, experts worry that this may stifle long-term innovation and competition.

These fears may not be unfounded. According to Bloomberg, DSW and other major retailers are getting into the cannabis business. Smaller outfits are having trouble with CBD in ways that do not hinder more prominent competitors.

For example, small businesses often rely on a network of banks and payment processors. These payment processors make online buying and selling easy. Without the cooperation of payment processors, an online bank, and other resources, small businesses may find themselves with exorbitant fees and taxes or no method of processing payments at all.

With big companies such as CV Sciences entering the arena, this situation may become commonplace for small businesses striving to make a profit. The outlook on how CV Sciences may continue to shape the CBD landscape remains to be seen.