CannaVest Corp (OTCMKTS:CANV) Powers Up After 52-Week Lows

After dipping to a 52-week low of $0.80 per share – the culmination of an underwhelming first half of 2015 on the charts – CannaVest Corp (OTCMKTS:CANV) enjoyed a reversal that is still going strong. As it bounced from its new low, the ticker went on a green streak longer than any before it for the past six months.

The reason CANV reversed and bounced from the $0.80 mark was a press release that went up on July 21. The company announced that pending litigation with Medical Marijuana Inc (OTCMKTS:MJNA) and parties related to MJNA was settled. According to the settlement, MJNA and its related parties will pay CANV a total of $750,000. A fifth of this sum has already been paid up. The remaining money will be paid in six monthly installments of $100,000. The settlement included CANV receiving “certain domain names” and assigning rights and interest in “certain trademarks” affiliated with the Real Scientific Hemp Oil product line sold by Medical Marijuana Inc.

This seems to have been the push the ticker needed as, combined with a new dip to oversold levels, it pushed CANV up some 67% over the course of six sessions. Even at those levels, CANV is far from its January price range.

CANV filed an S-1 registration statement related to the remainder of the financing it expects to receive from Redwood Management LLC. A previous encounter with the name Redwood Management was when we were covering the stock of Sanomedics Intl Holdings (OTCMKTS:SIMH) – a company that rode the ebola panic wave of late 2014 as hard as it could before crashing and burning in a sizzling inferno. SIMH signed two toxic convertible notes with Redwood Management LLC back in October 2014.

SIMH‘s one-year chart speaks volumes and hardly needs any additional comments. It should just be noted that the company managed to drop to $0.001 per share even after doing a 1-for-125 reverse split of its stock in February 2015.

How excited shareholders are about CANV planning to get another $4.5 million in financing from Redwood remains to be seen.