Any company that faces the campaign of short sellers experiences hard times; especially the shareholders. In the recent months, CV Sciences Inc (OTCMKTS:CVSI) had a rough battle with the investors which badly bruised the share price. In an Aug. 30, 2018 press statement, the company gave an update to shareholders regarding the situation.
In the update, CV Sciences acknowledges the “malicious” intent of the short sellers. The company CEO, Joseph Dowling further explains that they are victims of “campaigns run by short sellers in order to depress our stock price, so they could make financial windfalls.”
The CEO further details that: “We are also aware that at least one such group has boasted on social media platforms about its financial returns since their release of misleading information regarding the Company’s patent prosecution and drug development efforts.”
In rebuttal, the CEO affirms that the company presents strong financial numbers and that this will go on in future. He adds that there is nothing different with the business model since it is solid. Joseph speaks out so strongly about the “manipulations” and offers his sympathy for the shareholders.
“We will continue to do everything in our control to bring this activity to a halt. In the months ahead, we look forward to reporting our operating results in this fast-growing industry and providing updates on our drug development efforts,” he says.
A product milestone for CV Sciences Inc (OTCMKTS:CVSI)
The run in with the short sellers did not dampen the company’s spirits. In under two weeks, the company announced a great milestone for one of its products. The PlusCBD Oil™ Gold Formula product line acquired the Generally Recognized as Safe (GRAS) status. The status implies successful performance on the safety front. Further, the GRAS status implies the U.S. Food and Drug Administration (FDA) approves of the production and supply of PlusCBD Oil™.
Such a status is important to product sales and consumer confidence in the company. Concurring with the assessment, the CEO says:
“We are committed to building consumer confidence and trust in the safety and quality of our products, supported by scientific evidence.