CVSI stock is moving higher in the early session on Tuesday after CV Sciences (OTCQB:CVSI) announced the expansion of its operations with a new production and warehouse facility.
New Production Facility
CV Sciences is one of the biggest names in the hemp-based CBD business, and over the years, the company has managed to become one of the dominant players in the CBD oil segment with its PlusCBD Oil brand.
However, it seems the company is not content to sit on its laurels and is going to continue on its quest to grow. Today, CV Sciences made the announcement that its operations are going to be expanded with a brand new facility that will be used both for production as well as for warehousing purposes.
The development is a hugely significant one since the facility, which spans an area of 45,000 square feet, is also going to be used for fulfillment in addition to CBD oil production and warehousing. The demand for CVSI's brand of CBD oil has grown, and the company believes that it will grow its current capacity to serve the market by more than 500%. The new CV Sciences facility is located in San Diego and is expected to be active by Q4 2019.
CVSI stock is up over 3% and now trading at $4.17 on the OTC market.
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Key Developments
While it is true that the company has become one of the biggest names in the hemp-based CBD oil industry, it is also involved in producing CBD-infused drugs. The fact that the company is going to take over such a large facility is also an indictment of the sort of growth that it has enjoyed.
Analysts believe that growth is expected to continue. In Q1 2019, CV Sciences recorded sales of $14.9, but the important thing about the figure is that it reflects year-on-year growth of 85%. In addition to that, the passage of the Farm Bill in the United States has legalized industrial hemp across the country, and it goes without saying that this is a huge development for the company, which is primed to cash in on the potential growth in the hemp industry. The CBD market could be worth $22 billion in three year's time, and CV Sciences could end up being one of the biggest beneficiaries of that growth.
However, despite positive developments, CVSI stock is still down over 35% from its March peak price of $6.50.
Featured image: Canva
