PURA Publishes 100% Yr Over Yr Organic Revenue Growth Outlook; Acquisition Campaign Strategic Update & New Beverage Developme...
May 19 2020 - 12:51PM
InvestorsHub NewsWire
Dallas, TX -- May 19, 2020 -- InvestorsHub
NewsWire -- Puration, Inc. (USOTC:
PURA) today published a management update to highlight further
details regarding the company’s 2019 annual financial report
published last week. The company realized 121% annual revenue
growth reporting over $2.7 million for the year ended December 31,
2019 compared to $1.2 million for the year ended December 31,
2018. In addition to achieving continued high revenue growth,
the company reported over $200,0000 in net profit. The
management update including a 2020 outlook and the latest on the
company’s acquisition campaign and organic beverage developments,
can be found in its entirety below.
Management 2019
Annual Report Update And 2020
Outlook
PURA has maintained high revenue growth
since 2017 when it took its first pre-orders for EVERx CBD Sports
Water. PURA’s entry into the sports nutrition market with
EVERx has been a hit and it has established a strong financial
foundation for PURA enabling the company to explore and experiment
with the formulation and market opportunity for additional
beverages. No new PURA beverage has yet had the success of
EVERx, but EVERx continues to keep the company on stable footing
and on a high revenue trajectory. Even through the economic
impacts of the Coronavirus, EVERx continues to keep PURA on stable
footing. While acting and planning cautiously in the current
environment, management still has confidence that EVERx can
maintain its stable footing while also continuing to produce high
revenue results through 2020.
To date, EVERx CBD Sports Water is PURA’s
core business producing financial results. Accordingly,
management’s first priority will be to continuously enhance and
further develop the EVERx business. PURA has been through
multiple EVERx formula enhancements and will continue to update the
formula in addition to exploring new flavors. PURA has also
been through multiple production updates and packaging redesigns
and will continue improve production and packaging. PURA has
made substantial strides in developing its distribution network
most notably expanding its distribution network to Europe, Africa
and South America. PURA will continue to improve upon its
distribution network.
The company has organically developed a
number of additional cannabis beverages and will continue to move
the full market launch of new beverages developed organically
forwarded. Management sees particular promise in its THCSavor
and TranquiliTea CBD beverages.
In January of
this year, 2020, PURA launched a campaign to acquire CBD beverage,
edible and topical businesses to include CBD businesses that
targeted pet products. 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. PURA
has acquired a CBD confections company and a CBD pet products
company so far this year. The company recently announced a
letter of intent to acquire a CBD infused Sun Care
business.
In February,
PURA secured a $5 million investment to fund its
acquisition campaign. The $5 million investment is
structured as 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.
PURA’s strategy
is to targets CBD product acquisitions that can be enhanced with
PURA’s patented technology. 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.
PURA’s
acquisition priority is to concentrate on opportunities that can be
purchased in exchange for a royalty agreement. Management’s
preference is to concentrate its investment funds on the rebranded
sales and marketing of acquired assets and not the actual purchase
of the asset itself. Management looks for CBD acquisition
opportunities where the operations can be absorbed into PURA’s
existing production capacity; product formulations can be enhanced
with PURA’s patented technology, and the sellers’ benefit is
derived from the ultimate success of the
asset.
Outlook
PURA management
is currently basing its revenue outlook solely on its EVERx product
at this time in light of the economic uncertainty resulting from
the impact of the Coronavirus. The potential revenue benefit
of acquired assets and the potential revenue benefit of organically
developed beverages will be treated as a bonus to the EVERx
baseline.
The company
plans to aggressively continue to pursue its acquisition campaign
but cautiously monitor the prevailing economic situation in light
of the Coronavirus and correspondingly execute on the
advancement of acquired assets in step with what the prevailing
economic scenario can confidently bear. If necessary, the
advancement of acquired assets can wait a little longer until the
overall economy is better suited to support the market launch of
rebranded products.
Similarly, PURA
management will continue to regulate the ongoing development of its
organic beverage products based on its measurement of what it
believes the prevailing economic environment can
support.
Even with a
preponderance of caution, and the possible delay in advancing
acquired product rebranding and organic product development, PURA
management has confidence the company will continue to grow year
over year expanding its revenue at a rate of 100% or better.
Furthermore, management anticipates a gross margin improvement in
2020 as the expense of production updates made last year included
upfront costs that are not
recurring.
Management
remains optimistic that economic conditions will improve and offer
PURA the opportunity to advance new and acquired product
development. The priority will be to concentrate resources
first on its EVERx CBD Sports Water, second on building asset value
through acquisition and third on converting asset value into
revenue growth.
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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