PURA Reports New Traction In $20 Billion Potential CBD Market
April 30 2020 - 12:52PM
InvestorsHub NewsWire
Dallas, TX -- April 30, 2020 --
InvestorsHub NewsWire -- Puration, Inc. (USOTC:
PURA) today released a CBD business acquisition campaign update
from CEO Brian Shibley. The company launched the campaign in
January this year and subsequently secured a $5 million investment
to back the campaign in February. Two acquisitions have
already been closed and the company recently announced entering
into due-diligence engagements on three more prospective
acquisition opportunities. The campaign has gained momentum
since January and management anticipates accelerated momentum yet
to come with plans for more investment capital to fuel the campaign
and market conditions evolving in favor of the campaign. The
CEO update for expanding into the CBD market expected to reach as
high as $20 billion as soon as 2024 is included in its entirety
below within in this release.
CBD Business
Acquisition Campaign
In January of this year, 2020, PURA
launched a campaign to acquire CBD beverage, edible and topical
businesses to include CBD pet products businesses. The
campaign was intended to target a robust market of creative and
promising young companies starved for investment in the waning 2019
cannabis capital market. The Covid-19 impact on the economy
has further constrained access to capital for young CBD
companies.
Rollup
Strategy
PURA’s acquisition campaign strategy was
built on two primary components:
- Targeting acquisition candidates where
PURA’s exclusive patented cannabis extraction process would enhance
and differentiate the targeted business
and
- by bringing much needed investment capital
to acquired operations.
CBD Technology
Differentiation
PURA owns a
license to a U.S. Patented cannabis extraction process backed by
extensive university medical research. The license, issued by
NCM Biotech, is exclusive for beverages, edibles and cosmetics
among other uses. NCM Biotech is focused on medical research and
Puration has access to that research. See a recent research report
on CBD extracts derived from NCM Biotech's patented extraction
process: Journal of Cannabis
Research.
Investment
Capital
In February, PURA secured a $5 million investment to fund acquisitions of
cannabis infused beverage, edible and topical operations. The $5
million investment is structured as a debt facility whereby funds
can be drawn as needed to fund acquisitions. The drawn funds would
be secured by the acquired asset and the debt can be repaid in
stock at $0.10 per
share.
PURA management is actively pursuing
additional investment to increase the potential of the current
acquisition campaign.
Covid-19
Acquisition Campaign
Acceleration
The onset of the Coronavirus impact on the
global economy has exacerbated the 2019 investment capital squeeze
on cannabis ventures into 2020. The further tightening on
capital has resulted in what currently appears to be an increased
cannabis business market-wide appetite for exploring merger and
acquisitions (M&A). PURA has experienced an increase in
unsolicited M&A inquiries.
Progress
To date, PURA has executed its first to
acquisitions. PURA has acquired a CBD infused confections
business that currently sells CBD gummies and CBD gum. PURA
is working now to rebrand and relaunch the CBD confections
products. Grand View Research, Inc.
recently reported that the
global CBD gummies market is expected to reach $6.94
Billion by 2025.
PURA has also acquired a CBD pet products
company. The seller currently
provides concierge pet services through an online portal and the
CBD infused pet product line will bear the name of the
portal. PURA will have access to the portal and the existing
customer base to market the CBD infused pet products. The CBD
pet products market is anticipated to reach $1.16 billion in the U.S. alone by
2022.
PURA has three
new target acquisitions currently undergoing a due diligence
review. Look for updates coming
soon.
Outlook
The outlook for CBD sales does not
correlate with the either the 2019 cannabis investment market let
alone the prevailing Covid-19 market. Multiple forecasts
support substantial year over year growth reaching as has as
$20 billion in global CBD sales as soon as
2024. The apparent disconnect between investment
enthusiasm and forecasted growth validates for PURA management the
current acquisition campaign
opportunity.
For more information on Puration,
visit http://www.purationinc.com
Disclaimer/Safe
Harbor:
This news release contains forward-looking
statements within the meaning of the Securities Litigation Reform
Act. The statements reflect the Company's current views with
respect to future events that involve risks and uncertainties.
Among others, these risks include the expectation that any of the
companies mentioned herein will achieve significant sales, the
failure to meet schedule or performance requirements of the
companies' contracts, the companies' liquidity position, the
companies' ability to obtain new contracts, the emergence of
competitors with greater financial resources and the impact of
competitive pricing. In the light of these uncertainties, the
forward-looking events referred to in this release might not occur.
These statements have not been evaluated by the Food and Drug
Administration. These products are not intended to diagnose, treat,
cure, or prevent any disease.
Contact:
Puration, Inc.
Brian Shibley,
info@aciconglomerated.com
(800)
861-1350
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