PAO Group Inc.’s CBD-Based
Nutraceutical Shows Promise In Treating COPD… And Could Create
Massive Shareholder Value
March 4, 2021 -- InvestorsHub NewsWire -- via Digital
Journal -- Don't let PAO Group, Inc.'s (USOTC: PAOG)
stock price fool you. PAOG should be worth far more than its
sub-penny share price. In fact, PAOG may be doing more than many of
its mid-cap competitors in the race to find an effective
non-pharmaceutical treatment for COPD. And with its RespRx
acquisition combined with other programs, PAOG is indeed on pace to
accelerate CBD-based studies that could bring needed therapeutic
relief to millions of COPD patients.
Moreover, PAOG is a revenue-generating company after securing an
18-month deal expected to deliver $300,000 in new revenues from its
cannabis cultivation subsidiary. The first receivable may be
highlighted when the company provides a Q4 update. Other deals
should also help drive shareholder value higher.
In February, PAOG announced an expansion of its CBD
nutraceutical operations. That initiative, highlighted in
presentation, details PAOG's CBD nutraceutical development
expansion plans and explained how strategic engagements with
Puration, Inc. (USOTC: PURA),
North American Cannabis Holdings, Inc. (USOTC:
USMJ), and Alkame Holdings, Inc. (USOTC:
ALKM) can accelerate growth in multiple directions.
In fact, the breadth of news is keeping investors interested in
the stock, and despite recent sector-wide weakness, PAOG has been
able to hold its roughly 300% share price increase since the start
of the year.
The trend higher is likely to continue when risk makes its way
back into the markets. At current share prices, the opportunity may
Video Link: https://www.youtube.com/embed/p48PfDlIABQ
Targeting COPD With CBD-Based Therapeutics
The bullish trend started after PAOG announced accelerating its
initiatives to develop CBD alternatives to treat patients with
symptoms associated with Chronic Obstructive Pulmonary Disorder
(COPD). Investor interest spiked appreciably after PAOG announced
its potentially transformative acquisition of RespRx from
Kali-Extracts, Inc. That asset is a good one, and more importantly,
can be commercialized to target multiple indications where a better
and safer standard of care is needed.
And not only does RespRx add substantial value to its product
pipeline arsenal, but it also positions PAOG to soon monetize its
opportunities through commercialization, licensing, or
partnerships. Each option can add substantial value.
Keep in mind, too, the acquisition of RespRx does more than
position PAOG as a viable competitor in the medical-grade cannabis
treatment sector to treat COPD. It also allows them to leverage a
patented cannabis extraction method that could be useful across
many diseases. Thus, near-term revenue creation could be achieved
through a licensing strategy.
Moving into 2021, its COPD initiatives may be taking the lead,
but PAOG is far from being a one-shot company. In fact, PAOG has
positioned itself for multiple shots on goal by advancing a
nutraceutical product line that they believe will compete
effectively against already marketed, higher-priced brands. During
2020, PAOG entered into several deals designed to monetize assets
in the coming quarters.
Nutraceuticals Can Be A Significant
To strengthen PAOG's development-stage program intending to
deliver a pharmaceutical-grade nutraceutical COPD treatment to
market, PAOG recently announced engaging with the Puerto Rico
Consortium for Clinical Investigation (PRCCI) to assist with
developing its proprietary Cannabidiol (CBD) extract into a
nutraceutical product. The excellent news for PAOG is that the
agreement not only adds credibility and sector expertise to the
initiative it can help expedite approval if the two successfully
develop an effective CBD-based treatment to target COPD's
Moreover, with PAOG's CBD-based treatment having the potential
to replace addictive and often harmful prescription drugs, the
company hopes that after proving its therapeutic value can earn
fast-track approval processes through regulatory agencies accepting
CBD and cannabinoid compounds as viable and effective treatment
options. And don't think that "big pharma" is not paying attention
to the encroachment. Earlier this year, Jazz Pharmaceuticals'
(NASDAQ: JAZZ) purchased GW Pharma (NASDAQ: GWPH) for $7.2 billion
and set the stage for further industry consolidation. And who are
the attractive targets? Small companies with compelling
assets...and PAOG meets that standard.
In addition to its assets, patents, and active programs, PAOG
has something that most micro-cap companies can't claim- REVENUES.
And effective management of revenues can lead to even
Maximizing Revenues For Growth
As noted, PAO Group is doing what most of its peers are not
doing...generating revenues. And if the company can maximize that
income by capitalizing on new opportunities to expand its product
portfolio, the $300,000 deal may pale compared to future
engagements. Progress is already showing.
PAO Group recently announced a deal with Alkame Holdings Inc.
PINK: ALKM) to develop and distribute its CBD nutraceuticals.
Alkame adds strength to development-stage companies by adding
expertise on the essential logistical side of the operations. In
other words, PAOG is banking on successful product development and
is putting its distribution infrastructure in place now.
That deal does more than help push revenues toward the bottom
line. It also introduced PAOG to North American Cannabis Holdings,
Pink: USMJ), which is expected to take on the
distributor's role. The read-between-the-lines moment is that in
reasonably quick succession, PAOG aligned itself with two other
sector companies that add a specific skill set. Moreover, with all
three actively making deals to expand their own market presence,
consolidation and additional value-generating agreements among the
three is likely over the coming quarters.
Thus, a sum of the parts analysis indicates on almost any
measure that this emerging develop-stage company is substantially
undervalued. And with shares trading at sub-penny prices per share,
there are justifiable reasons for investors to take an interest in
In particular, increasing revenues, accretive deals, and access
to a patented CBD extraction technology each add an independent
layer of value. Stocks trading 10X higher lack the assets at PAOG,
and most have far less in development. But, being under-the-radar
has its drawbacks, and PAOG is hard at work to change that
Growth In 2021 Is Happening Already
Updates from PAOG tell a story of growth and program
development. They are making strategic deals with industry
companies to help expedite their near-term plans, they are
generating revenues, and are positioned to leverage its patented
CBD extraction process to capitalize on substantial market
Therefore, from any valuation model, the current share price
does not fairly reflect the inherent value in the PAOG product
portfolio or pipeline. Moreover, by factoring in what the company
can do in the next 3-12 months, inclusive of its deal with PRCCI
that can accelerate product commercialization, PAOG is fueled and
ready to create shareholder value.
Thus, the coming quarters can produce transformative
value-creation at PAOG. And for the high-risk, high-reward
investor, taking a position in PAO Group at these levels may also
help transform one's investment portfolio.
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