Puration Presents Cannabis Cultivation Strategy For $9.7 Billion Market Following Acquisition Of Canadian Cannabis Farmers Co...
May 10 2018 - 10:19AM
InvestorsHub NewsWire
Puration Presents Cannabis Cultivation
Strategy For $9.7 Billion Market Following Acquisition Of Canadian
Cannabis Farmers Co-Op
Dallas, TX -- May 10,
2018 -- InvestorsHub NewsWire -- Puration, Inc. (USOTC:
PURA) today released an online presentation on the company’s
cannabis cultivation business operation. The company entered
the cannabis cultivation sector last year in 2017 with the
acquisition of First Choice Nursery and the implementation of a
long-term cannabis cultivation strategy to navigate the evolving
legal environment and ultimately establish a recognized brand name
in the cannabis market place. Yesterday, the company
announced the acquisition of Canadian Cannabis Farmers Co-Op to
position Puration for the recreational marijuana market expected to
be legalized nationwide in Canada this summer. The online
presentation is intended to provide more detail on the company’s
long-term cannabis cultivation strategy to establish a recognized
brand name in what is currently a $9.7
billion market place, according to ArcView Market Research, and
expected to reach $24.5 billion by 2021. The presentation
also includes details on the company’s plan to expand its
existing cannabis infused beverage business into Canada. The
narrative from the presentation is included in its entirety
below. The presentation can be found on the company’s website.
Puration’s Cannabis Cultivation History and Go-Forward
Strategy
The acquisition of Canadian Cannabis Farmers Co-Op dramatically
accelerates Puration’s cannabis cultivation strategy by entering
the company into Canada’s estimated $5 billion market for
recreational marijuana expected to be implemented this summer
(2018). While the company has already initiated a long-term
cannabis cultivation strategy in Texas, the existing legal medical
marijuana market in Canada and their pending recreational market,
move Puration’s plans to establish a recognized brand name in the
cannabis market place several big steps forward. The company
has already achieved notable success establishing brand name
recognition for its EVERx CBD Infused Sports Water and now with the
acquisition of Canadian Cannabis Farmers Co-Op, the company is
positioned to achieve similar results with its cultivation
business. Management has a unique strategy to differentiate
itself from other leading brand names in Canada such as
Canopy Growth Corp. (TWMJF),
currently the largest pot stock by market cap in the world, and not
too far behind Canopy, Aurora Cannabis (ACBFF), Aphria
(APHQF), MedReleaf
(MEDFF), and OrganiGram Holdings
(ORGMF). Current estimates suggest these leading
publicly traded cannabis company’s may not be selling recreational
marijuana until sometime in 2019 after addressing all the licensing
hurdles. Puration expects to establish a revenue foothold
much faster through its unique strategy.
Puration’s Cannabis Cultivation Foundation
Puration has implemented a long-term cannabis cultivation strategy
to navigate the evolving legal environment and ultimately establish
a recognized brand name in the cannabis market place. Through
the acquisition last year of First Choice Nursery, Puration has
already setup a 25-greenhouse operation in its home state of Texas
where limited medical marijuana legalization has passed. The
company is working to establish a university backed cannabis
cultivation research facility within the 25-greenhouse
operation. In the meantime, the facility is financed through
being utilized for conventionally growing household and landscape
plants. It is expected to generate $1 million in revenue this
year and self-finance the expansion of the 25-greenhouse operation
into as many as 400-greenhouses. Once, recreational marijuana
is legal either through state or federal law, the Texas facility
will be in a leadership position with a robust production facility
ready-to-go and a university research backed cultivation process in
place.
Canadian Cannabis Farmers Co-Op Business Plan
The acquisition of Canadian Cannabis Farmers Co-Op positions
Puration for the estimated $5 billion recreational marijuana market
expected to be legalized nationwide in Canada this summer.
With the acquisition, Puration now has inhouse cultivation
experience garnered from the operation of a licensed medical
marijuana facility of substantial size. The company plans to
apply for a recreational license and anticipates its medical
marijuana experience to be of benefit in the recreational license
application process. Similar to other Canadian marijuana
sector companies such as Canopy
Growth Corp. (TWMJF),
Aurora Cannabis (ACBFF), Aphria
(APHQF), MedReleaf
(MEDFF), and OrganiGram Holdings
(ORGMF). Puration has plans to build substantial
inhouse operations. The company has already received interest
from investors in backing the construction of facilities for
pursuing the Canadian legal marijuana market. However, in
addition to building out inhouse operations, Puration plans to take
its acquired expertise to what it expects to be a robust
micro-cultivation and micro-processing market. Health Canada
recently announced plans to introduce new micro-cultivation and
micro-processing licenses. A micro-cultivation license would
be issued to an authorized plant canopy area of less than 200
square meters (2,153 square feet), and a micro-processing license
allowed for those processing less than 600 kilograms, or 1,323
pounds, of dried cannabis a year. The legalization of
recreational marijuana in Canada also includes individual
cultivation for up to four plants. Puration plans to serve
the micro-cultivation, micro-processing and home-growers market
place with products and services necessary for production. By
establishing a recognized brand name in cannabis cultivation from
its inhouse production, Puration expects to leverage its brand name
to tap into the more profitable micro-cultivation, micro-processing
and home-growers market place. To help illustrate the
opportunity, consider the micro-brewery and home brewing market
place in the United States alone. Retail dollar sales for
craft micro-brewed beer in the U.S. is approximately $26.0
billion, accounting for more than 23% of the overall $111.4 billion
U.S. beer market.
Expanding Puration’s Existing Cannabis Infused Beverage
Business
Last year, Puration introduced EVERx, a
CBD infused sports water. The sales of EVERx yielded over a
60% gross margin as reported in the company’s 2017 annual report.
The initial sales have won the interest of additional distributors
to include a recently announced national distribution
contract.
Puration has now designed a THC infused
beverage and registered the name THCSavor. The company
recently introduced the initial package design for the THCSavor
beverage. With the recent acquisition of Canadian
Cannabis Farmers Co-Op, Puration plans to leverage the acquired
medical marijuana industry experience and traction to rapidly
introduce THCSavor into the existing legal medical marijuana market
in Canada and later through the pending legal recreational
market.
For more information on Puration,
visit http://www.aciconglomerated.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.
Puration, Inc.
Brian Shibley,
info@aciconglomerated.com
+1-800-861-1350
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