May 21, 2021 -- InvestorsHub NewsWire -- via MarketWatch -- Alkame
Holdings, Inc. (OTC
Pink: ALKM) stock
jumped 6% intraday after announcing a $1 million PPE deal with
Aladyn Protection Systems, LLC. Alkame said that Aladyn will soon
be receiving its first shipment of Personal Protection Equipment
(PPE) as part of a recently closed $1 million long-term purchase
agreement. Expectations are for ALKM to ramp PPE sales during the
remainder of 2021 as they continue to earn additional permits.
The deal can be a PPE game changer for ALKM. With a logistics
hub in Miami, Florida, Aladyn is a global wholesale supplier of
personal protective equipment (PPE) that focuses on providing
large-scale solutions to the travel and hospitality industries. The
PPE sales contract will expedite Aladyn's purchases of PPE
inventory from Alkame by doubling the designated order size every
ten weeks, with a cumulative purchasing target of $1 million in
sales from Alkame in the first year. It can get bigger from there.
And with PPE likely to never go away, it can be a massive long term
deal.
Alkame began producing premium personal protective equipment
(PPE) such as hand sanitizer for first responders and the medical
industry in 2020, following the massive demand for these essential
products created by the COVID-19 pandemic. Licensing,
administrative approvals, safety inspections, certifications, and
product formulas were all meticulously planned by the company, and
the resulting high-quality materials have helped ALKM to secure
deals in numerous healthcare sectors. ALKM was promptly rewarded by
its recent change in manufacturing focus through sales to the State
of Oregon, and having already obtained documentation for export
permissions, was able to negotiate a deal to distribute its PPE in
Canada as well. These deals are channeled through West Coast
Co-Packers, a wholly-owned subsidiary of Alkame.
The company’s shift into the PPE sector is expected to translate
into a long-term opportunity for the company as it complements its
regular co-packing services. That co-packing business, in and of
itself, is expected to rise in valuation following the eventual
easing of pandemic-related headwinds.
Alkame Holdings is Powered Up
Indeed, Alkame Holdings has taken significant steps toward
diversifying its portfolio by introducing a new product to its
flagship EverX line. ALKM recently made headlines with the
announcement of its new Sugar-Free EVERx CBD Sports Water, a
product that extends the CBD-based product to a wider consumer
base. The sugar-free specialty water will be sold along with its
original EVERx CBD Sports Water, which made about $2 million in
sales in 2020. Now armed with a sugar-free variety, the combined
sales between the two drinks could greatly significantly outperform
2020 sales.
The proof is in the markets. Sugar-free alternatives to brands
like Monster Beverage (NYSE: KO) are
starting to win a sizable portion of store shelves as many
consumers have become more conscious of carbs, with other energy
drink offerings such as Bang marketing to the physically active and
health-conscious consumer. EVERx Sugar-Free CBD Sports Water is a
perfect example of how to capitalize upon this trend, since it
preserves many of the benefits of its original formulation while
lowering calories and removing excessive carbs. With these updates
to the original recipe, it's anticipated that the demand for EVERx
CBD Sports Water will grow even further to include the
carb-conscious, those keeping track of their daily calories, and
even those who must monitor their sugar consumption due to medical
reasons.
Puration, Inc. (OTC
PINK: PURA), a long-time associate who was instrumental in
supporting the development and commercialization of the original
EVERx CBD Sports Water, will remain partnered with ALKM for the new
offering as well. Furthermore, outside of EVERx, the team is also
working on new CBD-infused treatments expected to be unveiled to
the public soon. Stock valuations are expected to rise following
this announcement, showing promise thanks to the company's
extension of its collaborations with its proven distributing and
marketing partners.
The Benefits of an Additional Facility
ALKM is also actively collaborating with another company who can
provide a new angle of logistical and business experience to the
company. This company is North American Cannabis Holdings, Inc.
(USOTC: USMJ)
who will be working with another company, Puration, Inc to
assist Alkame with the commercial launch for Sugar-Free EVERx CBD
Sports Water. USMJ has extensive expertise in the CBD industry and
can assist ALKM in optimizing the product launch due to its
knowledge of the industry’s unique distribution networks.
Keep in mind, ALKM already has an established distribution
network, and this new product and partnership could help expand
their product range and customer base. Despite the fact that the
stock is trading at sub-penny levels, the company firm has been
working tirelessly behind the scenes to finish the building of a
new West Coast Co-Packer plant. The new plant would almost double
manufacturing capabilities thanks to its higher-speed machines, and
this increase in production volumes alone could result in a
significant increase to sales as early as this year. Therefore, the
current prices appea rto substantially undervalue its assets.
Apart from the extra space and capacity, the new production
location will allow ALKM to boost its industry status through
securing new and important regulatory certifications. Specifically,
the Gervais facility will allow ALKM to seek one of the most
important and highest-rated compliance certifications available,
which would create new options for businesses looking for a
distribution and sales channel partner.
ALKM has already laid out a multi-channel marketing strategy
that includes a direct-to-consumer business model, which will be
launched in 2021. Based on the company's previous acquisition of
DistributorCorp, this model would facilitate the online purchasing
and subsequent distribution of sanitizer and similar PPE products
to clients across the nation. PPE materials are included in the
company's non-hemp-related product division, which also contains
the Alkame brand of premium oxygenated alkaline filtered water.
ALKM is actively pursuing export licenses for a number of its
best-selling brands and products.
There's more.
ALKM is Strong in 2021 Thanks to a Smart 2020
This year has put Alkame Holdings in one of its greatest
positions ever to seize upon its long-term targeted opportunities.
ALKM's most recent investor update detailed how its CEO prepared
the firm to survive the economic crisis that plagued industries
worldwide throughout 2020. One of the most significant takeaways
from the update is that the company's supply and logistics networks
remained operational amid the extreme economic disruptions, and
that the slowly improving economic conditions are gradually
bringing some relief to retail locations nationwide. It's also
benefiting ALKM.
In fact, Alkame Holdings has done a fantastic job of expanding
its potentially-achievable opportunities throughout the first half
of 2021, putting the firm in a great position for accelerated
growth thanks to newly revamped facilities, creative products, and
accretive partnerships.
Armed With New Capabilities, ALKM Bringing its All for 2021
Without a doubt, companies faced an unparalleled challenge in
working around the pandemic's economic volatility. Although some
companies failed to keep up, some used the downtime to formulate
new plans to deal with a shifting retail climate – the latter being
greatly exemplified by Alkame.
Not only did the company smartly maneuver through the pandemic,
but its manufacturing division also assisted with the distribution
of sanitizer and personal protective equipment (PPE) to help deter
the outbreak of COVID-19. With all of this in mind, ALKM is not
only a survivor, but they have demonstrated their ability to think
on their feet and make the most of any opportunity they are
presented with.
The good news is that as COVID-related constraints are being
loosened across the world, ALKM stock could rise in tandem as its
products and services re-enter normalized consumer networks.
Analysts believe that pent-up demand for consumer goods could lead
to one of the most spectacular economical snap-back rallies in
history, with higher consumer spending expected to provide more
than just relief in industries worldwide.
With new products in development and its additional facilities
nearing completion, Alkame Holdings' decision to build up rather
than break down this year could pay off handsomely, and its
expected record production could soon bring record gains along with
it.
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Source - https://www.marketwatch.com/press-release/alkame-holdings-in-focus-as-company-inks-1-million-ppe-shipment-contract-shares-jump-6-alkm-2021-05-21?mod=mw_quote_news_seemore
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