Earlier this month CV Sciences Inc. (OTC:CVSI), a cannabidiol‐based pharmaceuticals and consumer products company, announced that it has entered into a binding and effective settlement agreement on May 31, 2018 with the Securities and Exchange Commission to fully and finally resolve all claims and matters related to the SEC’s enforcement action against the Company.
Michael J. Mona, Jr., the founder of the company, has also settled all claims brought against him personally in the matter with the SEC. Mr. Mona, Jr. as well as the company have not admitted nor denied any wrong doing as part of the settlement.
It was last June that the SEC had filed an enforcement action against CV Sciences and Mr. Mona where the commission alleged that there were irregularities relating to the Company’s financial reporting of its acquisition of certain assets of Phytosphere Systems, LLC in January of 2013.
According to CV Science’s (OTC:CVSI) press released, the SEC had “sought payment of unspecified monetary damages against the Company and Mr. Mona pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 and Section 21(d)(3) of the Securities Exchange Act of 1934, as amended, as well as ancillary claims.”
As part of the settlement, Mr. Mona, Jr. had resigned as the Company’s President and Chief Executive Officer. He also resigned his position on the Company’s Board of Directors.
“We are very pleased to have put this matter behind us,” stated Joseph Dowling, CEO.
Dowling added, “As we have communicated to the market, we vigorously defended and opposed this matter from the outset. At this point, we believe it is in the best interests of CV Sciences and its stockholders to resolve the matter and continue to capitalize on the market acceptance of our market-leading consumer products and to advance our novel drug development program in the treatment of smokeless tobacco use and addiction.”
“The company and the board are eternally grateful for the service of Mike Mona, as our founder, visionary and leader since the company’s inception. The company has grown substantially and has flourished under Mr. Mona’s leadership. His presence at the company as well as his work with our suppliers and vendors will continue as he transitions to his new role as a company employee,” he concluded.
CV Sciences (OTC:CVSI) operates two distinct business segments. One is a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD. The other is a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors.