February 8, 2021 -- InvestorsHub NewsWire -- via Hawk Point
Media -- Puration Inc. (OTC: PURA)
shares are in a bull market. Since the start of 2021, PURA shares
are higher by 244%, following a series of deals designed to
accelerate growth in the current and coming quarters. Growing
revenues, its exclusive license to a patented cannabis extraction
process, and a recent 5% capital investment into Alkame Holdings,
Inc. also contribute to what could be a breakout year for the
company. Since the start of February, shares are surging by more
than 122%, with heavy volume supporting the move higher.
Investors became bullish toward the end of January when PURA
guided that sales of its EVERx CBD Sports Water
product will surpass $2 million in sales in 2020. Those results
follow an impressive 2019, when sales also eclipsed the $2 million
level. Moreover, in an update from Puration, they noted that at the
end of its Q3 2020, sales of EVERx had already
reached $1.9 million despite the consumer and wholesale market
disruptions caused by the ongoing COVID-19 pandemic. Thus,
even against a sharp pandemic-driven slowdown, the 2020 totals
could breach last year's totals. This year, according to PURA, is
expected to be better.
PURA also guided that the pandemic's headwinds may be starting
to ease, which they expect will help
accelerate EVERx sales growth as early as the
first quarter of this year. Moreover, PURA management was quick to
point out that while EVERx may be its flagship
product, it is just one part of a growing portfolio of products and
interests that PURA plans to exploit this year.
A recently announced plan to break ground on a 70-acre property
in Farmersville, Texas, may be the first step to maximizing value
from several strategic initiatives.
Video Link: https://www.youtube.com/embed/X6kngsIey8A
Several Announcements Usher In New Market
Last week, Puration, Inc. announced finalizing plans to break
ground on its recently acquired 70-acre property in Farmersville,
Texas. The project, expected to start this summer, will become the
primary base for Puration operations. And more than just a home
office, it's campus is being designed to maximize multiple
opportunities and streamline revenues.
Specifically, the facility is designed to not only effectuate an
expansion of market presence for its
current EVERx business but to also help launch a
new hemp lifestyle brand business focused on increasing market
awareness and acceptance around industrial uses of hemp. To
jump-start that venture, PURA is already building partnerships with
hemp-related industry companies to advance individual pilot
projects that show the broad utility of hemp for multiple markets.
To those that aren't aware, in 2020, the industrial hemp market is
a $5.33 billion opportunity. However, the expectation is for that
market to increase to $15.26 billion by 2027. Thus, PURA's focus on
this lucrative market is timely. It also diversifies their
revenue-generating assets. Puration has said to stay tuned for
Another deal catching the headlines also came last week when
PURA and Alkame Holdings Inc. (USOTC:
ALKM) announced plans to produce and test market a CBD infused
liquid sugar, a CBD infused pet food supplement, and a CBD sexual
wellness flavored lubricant. Alkame, who already works with PURA to
support EVERx bottling and distribution, also
sold a 5% interest of its company to PURA, who can benefit from the
business association as well as from its investment. Incidentally,
shares of ALKM jumped more than 27% after the announcement, which
boosts the balance sheet at PURA.
Two other deals came together to create even more value. In
February, PURA entered into a partnership with PAO Group, Inc.
(USTOC: PAOG) to
build an indoor hemp cultivation operation to develop a
proprietary, pharmaceutical-grade hemp cultivar. The alliance can
utilize the strength of each company's specific expertise and
create value by leveraging strategic opportunities to accelerate
growth. As was the case for ALKM, shares in PAO Group also surged
on the partnership news.
Finally, in what is already a busy February, PURA announced
entering into strategic negotiations with North American Cannabis
Holdings, Inc. (USOTC: USMJ) in
a deal that can strengthen PURA's interests in the CBD sector. USMJ
currently operates a cannabis e-commerce business supported by an
already integrated cannabis products logistics operation.
The deal with USMJ is expected to contribute to PURA's hemp
lifestyle business initiative. It also allows PURA to leverage its
planned Farmersville, Texas facility, where multiple hemp-centric
enterprises are being formed to promote hemp's industrial
potential. Even better news for investors is that USMJ can further
leverage strengths from its recent partnerships with Alkame
Holdings, Inc. and PAO Group, Inc. as part of the same focus.
Also, with PURA showing interest in investing in other publicly
traded companies, consolidation between these four is certainly a
possibility. Last month, USMJ said it has initiated efforts to
refresh the company business plan after the impact on the company's
cannabis-themed restaurant operations from the COVID-19 pandemic.
The company has been known to make strategic investments.
Keep this in mind, too. PURA and USMJ already share the same
majority shareholder. Thus, as they work together to build a
strategic and synergistic strategy to optimize shareholder value
for each company, value can be created abd targeted by both to
maximize the billion-dollar-market opportunities within the now
diverse cannabis and CBD sectors.
Why The Surge?
During the first five trading days in February, the news from
PURA justified the spike in the share price. But, PURA is also
expecting to extend its market reach by capitalizing on the
inherent value of its exclusive license to a novel cannabis
extraction process. In a licensing deal with NCM Biotech, PURA has
a unique ability to penetrate new billion-dollar-market
opportunities by leveraging an extraction technology that could
accelerate the creation of new brands targeting the massive CBD
beverages, edibles, and cosmetics markets. The licensing agreement
terms also permit PURA to utilize and potentially capitalize on NCM
Biotech's research in the medical-use CBD products space. That
market, as investors have come to know, can be worth billions.
All of the above gets additional support from PURA's recently
announced 5% stake in Alkame Holdings, Inc., which can be
immediately accretive to its EVERx brand.
Moreover, with sales expected to exceed $2 million when the company
announces year-end 2020 results, that deal can improve operating
margins that would fall toward PURA's bottom line.
Further, the partnership is in late-stage plans to pilot the
production of multiple new CBD infused consumer products, including
a program to produce and test market a CBD infused liquid sugar and
a CBD infused pet food supplement. Also in play is speculation that
the Biden administration may favor eliminating many federal
restrictions in the cannabis space, with specific attention placed
on easing current banking regulations that restrict how money
earned in the cannabis sector can be banked.
If Biden does allow states more jurisdiction over regulating the
markets, the sector could be in store for a massive rally. It would
likely be a scenario where a rising tide lifts all ships and could
cause a short-squeeze of immense proportions.
Puration In Motion In 2021
Puration Inc. shareholders have every reason to be impressed by
the accomplishments made during the past two months. Still, the
guidance appears to set the stage for several more near-term
milestones to be reached. Remember, too, PURA shares have traded at
far higher levels in its past, and with an infrastructure and
partnership table that was less extensive than it is
Also necessary to take into consideration is that PURA is
positioned to capitalize from multiple shots on goal. And, those
shots are diversified, which could limit downside risk if
individual market segments get soft.
Noteworthy, too, is that PURA is executing on its plan to
increase shareholder value. February serves as a perfect example of
driving growth through a combination of ambition and managerial
And perhaps because of the ability to make deals, investors are
starting to recognize that the sum of PURA parts today contributes
to PURA being a much stronger company than when shares traded more
than 10X higher.
Thus, the 244% surge may simply be the share price catching up
with fundamentals. And if that is the case, these new agreements
made could contribute to even higher gains as investors digest and
evaluate the value created from a few savvy deals made just last
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