This morning most investors are going to look into stocks that may have clocked considerable gains on Thursday and one of the stocks which is expected to be on the radars is CV Sciences Inc (OTCMKTS:CVSI) stock. It was in major focus among investors yesterday and ended up with gains of as much as 100% for the day.
On Thursday, CVSI stock increased 100.66% to $0.0604 with more than 10.13 million shares, compared to its average volume of 757.40K shares. The stock moved within a range of $0.0320 – 0.0628 after opening trade at $0.0320.
CV Sciences, Inc. Extinguishes Convertible Debt
The company, which is best known for its specialization in the hemp extracts space, was in the news yesterday after it announced that it had been successful in eliminating the entirety of its outstanding convertible debt. It goes without saying that such an announcement is a significant one for any company and hence, the rally in the stock was perhaps not a surprise.
Joseph Dowling, who is the Chief Executive Officer of the company spoke about the development as well. He stated that after the elimination of all the convertible debt, the company’s balance sheet is going to be strengthened and it would also help considerably with the long-term initiatives that it may have planned. Additionally, he stated that CV Sciences would no longer need to issue stock to its lender and hence, shareholders would not need to fear dilution of their holdings either.
“We have retired all of our outstanding convertible debt which strengthens our balance sheet and helps us with our long-term strategic initiatives,” said Joseph Dowling, Chief Executive Officer. “The termination of all convertible debt and related obligations to issue stock to our lender will eliminate the dilutive impact of this debt on our stockholders. In addition, the termination of our convertible debt will eliminate the downward pressure on our stock caused by the sale of the shares issued at each conversion event. Our focus is to support our business goals that build shareholder value, and in this regard, we believe eliminating the negative impact of this financing is just as important as continuing to grow our PlusCBD™ branded products business.”
CVSI stock is above the 20-Day and 50-Day Moving averages of $0.0345 and $0.0355 respectively. However, the stock is trading below the 200-Day moving average of $0.1005. The company has a total market capitalization of $8.93 million. The stock is up 80% over the past month.