CVSI Stock Up 4% As Company Announces Distribution Deal

CVSI Stock

CV Sciences Inc (OTCQB:CVSI) has today announced a new distribution partnership with The Vitamin Shoppe, boosting CVSI stock by 4%.

The Ideal Partner

The partnership will broaden the distribution of CVSI's flagship PlusCBD™ oil products to more than 380 Vitamin Shoppe locations and will be available in stores in the US and Puerto Rico from September 22. “The Vitamin Shoppe is an ideal retail partner for CV Sciences as we continue our rapid expansion into national retailers. Their customers are savvy shoppers focused on health and wellness with a keen eye for high quality, efficacious products that promote a healthy lifestyle,” said CEO Joseph Dowling.

This distribution deal is a significant step forward for CVSI, particularly given analyst expectations that the sale of hemp CBD topicals in 2019 is expected to exceed $1.3 billion USD and with the market for such products set to skyrocket in the near future. According to a study by leading cannabis researchers BDS Analytics and Arcview Market Research, the market for CBD sales in the US will surpass $20 billion USD by 2024. Investors in CVSI stock are clearly feeling hopeful about the company's potential growth today, as seen by the rising share value.

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Bumpy Year for CVSI Stock

However, it has been a bumpy year for CVSI stock, which has seen some radical fluctuations in recent months. CVSI shares started the year with a valuation of $4.47 and saw gains as much as 40% in March and subsequent losses close to 50% by August, as the stock hit a year low $3.12. These fluctuations are indicative of the market as a whole, which has struggled with regulatory issues and slower than expected customer demand.

A Bright Future?

However, CVSI has been one of the few CBD companies to steadily return profits, despite its recent hectic share valuations. CV Sciences also recently signed a deal with grocery giant Kroger (NYSE:KR) to distribute its products in 1,350 stores across 22 states. CVSI stock is currently valued at $3.77, which actually looks like a bit of a steal given the massive retail expansion potential of its CBD product line. With gains of as much as 24% being made this week, it certainly looks like an interesting few months is in store for CVSI stock.

What do you think?

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