February 3, 2021 -- InvestorsHub NewsWire -- via Digital
Journal -- Puration Inc. (OTC: PURA)
shares have joined the micro-cap bull market. Since the start of
2021, PURA shares are higher by 99%, boosted by a series of
announcements that position the company to accelerate growth in the
current and coming quarters. Strong revenues, its exclusive license
to a patented cannabis extraction process, and a recent capital
investment into Alkame Holdings, Inc. (OTC: ALKM)
contribute to what could be a breakout year for the company.
The bullish sentiment started to take root at the end of January
when PURA announced that sales of its EVERx CBD
Sports Water product are expected to again eclipse $2 million in
sales in 2020, following impressive growth in 2019. By the end of
Q3 2020, sales had already reached $1.9 million despite the
consumer and wholesale market disruptions caused by the ongoing
COVID-19 pandemic. Fast-forward to 2021 and PURA expects to
continue and even accelerate EVERx CBD Sports
Water sales growth. The good news for investors is that that
revenue-generating asset is just one part of a growing portfolio of
products and interests that PURA plans to exploit this year.
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. That patented asset, issued by
NCM Biotech, allows PURA to aggressively penetrate new
billion-dollar-market opportunities by leveraging an extraction
technology that could blaze new trails into the massive CBD
beverages, edibles, and cosmetics markets. PURA is also positioned
to benefit from having access to continued research by NCM Biotech
to extend product reach into medical-use CBD products. That market,
as investors have come to know, can be worth billions.
Now, with a recently announced 5% stake into Alkame Holdings,
Inc., the opportunities at PURA have increased substantially. And
that could be why investors are bidding up the stock.
Investing Into Massive CBD Market
Opportunities
Last week, PURA announced that it has taken a 5% stake in Alkame
Holdings, Inc., the Texas-based company that currently bottles
its EVERx CBD Sports Water. Beyond providing
potential cost savings to PURA from bottling and logistics
services, the deal puts both companies in an excellent position to
benefit from each other’s business expertise.
Specifically, the partnership intends to pilot the production of
multiple new CBD infused consumer products, including a plan to
produce and test market a CBD infused liquid sugar and a CBD
infused pet food supplement. Incidentally, ALKM shares were higher
by 27% after the news of the investment was published, adding
balance sheet value to PURA. The surge in price also reflects
confidence in the ability of both companies to maximize combined
opportunities.
Keep in mind, too, PURA is not a rookie in the CBD-infused
beverage space. The company’s flagship
product, EVERx, was introduced in 2017 to target the
sports nutrition market. Sales of the specialty water have
continued to impress, and as noted, PURA expects to deliver back to
back revenue growth exceeding $2 million in 2019 and 2020. Applying
a peer-based revenues multiple on that number alone justifies a
substantially higher valuation.
Moreover, as the economy edges out of consumers’ logistical
restrictions due to COVID-19, the company expects revenue growth to
continue in the new year. That guidance makes sense, especially
with a Biden administration that may favor eliminating many federal
restrictions in the cannabis space. Expectations that his
administration will ease current banking regulations and allow
states to assume more regulatory oversight are bullish for the
entire sector.
In fact, those moves could help accelerate PURA’s plans to
introduce new beverages, capitalize on current investments, and
grow its product portfolio through targeted acquisitions. Still in
the works, too, is the expected dividend from the company’s
spun-off cannabis cultivation segment that positioned PURA to focus
exclusively on its high-growth core CBD-infused beverage business.
Terms of that spin-off will benefit shareholders through a stock
dividend by Nouveau Life Pharmaceuticals (OTC: NOUV).
Regulatory filings to effectuate that dividend have been ongoing,
and the distribution is expected soon.
Additional PURA strategic interests are likely contributing to
the recent spike in share price. A deal with PAO Group, Inc.
was met with investor enthusiasm.
A Sum Of The Parts Equation
In January, PURA said that value from its
recent Farmersville partnership with PAO Group, Inc. (OTC: PAOG)
and Alkame Holdings Inc. could spark a 2021 breakout for the
company. They, too, noted that cannabis policy changes could add
fuel to a sector bull market. Puration’s moves ahead of changes
could provide a windfall.
PURA recently acquired property in Farmersville, Texas, as part
of an enhanced strategy to build a comprehensive brand
(Farmersville Brands) presence around the full potential of hemp
derived products. The mission is to take advantage of the massive
opportunities beyond just the CBD extract sector and to capitalize
on hemp fiber markets that provide a better product alternative to
traditional construction, clothing manufacturing, and paper
production markets. To capitalize on those opportunities, PURA has
entered into partnerships with PAOG and ALKM to produce
hemp-derived, high demand consumer products. POAG brings additional
value-creating opportunities to PURA.
PAOG also brings expertise as a longtime participant in the
cannabis sector and is advancing initiatives to introduce
CBD-derived treatments as alternatives to traditional
pharmaceuticals. They believe they will soon offer a better
CBD-based therapeutic to replace conventional pharmaceutical
treatments, especially opioid-based drugs that can induce
potentially severe secondary ramifications. PAOG strategies could
also fit well within PURA's long-term business plan.
Last year, PAOG acquired RespRx from Kali-Extracts, Inc. (OTC
Pink: KALY). RespRx is a cannabis treatment under development for
Chronic Obstructive Pulmonary Disorder (COPD) derived from a
patented cannabis extraction method. Following that deal, PAOG
announced an engagement with Veristat, Inc., to assist in advancing
its proprietary Cannabidiol (CBD) extract to treat Chronic
Obstructive Pulmonary Disorder (COPD). The goal is to move toward
an Investigational New Drug application (IND) with the Food and
Drug Administration (FDA) to get the treatment to market.
The benefits to PURA, and ALKM, for that matter, is that PAOG
intends to work directly with PURA and ALKM’s co-packing operations
to deliver its innovative CBD nutraceutical care solutions to
patients experiencing issues associated with COPD. Thus, success in
publicly-traded PAOG could have an exponential and positive effect
on PURA’s long-term appreciation as well. At the very least,
the relationship adds another shot-on-goal for near and long term
success.
And with PURA actively evaluating strategic investments and
acquisitions, the PAOG partnership has the potential to get much
more extensive.
Puration Has Momentum Into 2021
Undoubtedly, the increase in share price after the first month
of 2021 is encouraging. However, recent deals and the potential for
new ones will likely attract even more attention. Of course,
recording more than $2 million in revenues
from EVERx also supports the roughly 100% gain
in price this year. But, remember, PURA traded at much higher
levels, and the return to those levels could be in
progress.
Consider, too, that under the previous president's
administration, CBD and cannabis stocks took a beating after a
meteoric rise in the years before. Now, select companies that led
the bulls a few years ago are back in focus. More specifically,
revenue-generating companies like PURA are earning the lion’s share
of attention.
Also important to note is that PURA has positioned itself to
benefit from multiple shots on goal. An investment interest in ALKM
and partnership agreements with other emerging industry companies
can create value that dwarfs its current $10 million market cap.
Moreover, a combination of fundamental enhancements and potential
short-covering could generate momentum to drive the stock
appreciably higher.
One thing is for sure. The sum of PURA parts today equates to a
much stronger company than it was when shares traded more than 10X
higher. Markets fluctuate, and sectors go in and out of style,
that’s a given. Another given, though, is that a company’s stock
price eventually catches up with fundamentals.
For Puration, Inc., that effect could translate into exponential
share price growth. After all, history in the stock market does
have a way of repeating itself. That could be great news for
puration Inc. shareholders.
Disclaimers: Hawk Point Media is responsible for the
production and distribution of this content. Hawk Point Media is
not operated by a licensed broker, a dealer, or a registered
investment adviser. It should be expressly understood that under no
circumstances does any information published herein represent a
recommendation to buy or sell a security. Our
reports/releases are a commercial advertisement and are for general
information purposes ONLY. We are engaged in the business of
marketing and advertising companies for monetary compensation.
Never invest in any stock featured on our site or emails unless you
can afford to lose your entire investment. The
information made available by Hawk Point Media is not intended to
be, nor does it constitute, investment advice or recommendations.
The contributors may buy and sell securities before and after any
particular article, report and publication. In no event shall Hawk
Point Media be liable to any member, guest or third party for any
damages of any kind arising out of the use of any content or other
material published or made available by Hawk Point Media,
including, without limitation, any investment losses, lost profits,
lost opportunity, special, incidental, indirect, consequential or
punitive damages. Hawk Point Media was compensated
three-thousand-five-hundred-dollars by wire transfer to produce
research, video, email, newsletters, and editorial commentary for
Puration, Inc. by a third party. Past performance is a poor
indicator of future performance. The information in this video,
article, and in its related newsletters, is not intended to be, nor
does it constitute, investment advice or recommendations. Hawk
Point Mediastrongly urges you conduct a complete and
independent investigation of the respective companies and
consideration of all pertinent risks. Readers are advised to review
SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports,
Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995
provides investors a safe harbor in regard to forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, goals, assumptions or future events or performance are
not statements of historical fact may be forward looking
statements. Forward looking statements are based on expectations,
estimates, and projections at the time the statements are made that
involve a number of risks and uncertainties which could cause
actual results or events to differ materially from those presently
anticipated. Forward looking statements in this action may be
identified through use of words such as projects, foresee, expects,
will, anticipates, estimates, believes, understands, or that by
statements indicating certain actions & quote; may, could, or
might occur. Understand there is no guarantee past performance will
be indicative of future results.Investing in
micro-cap and growth securities is highly speculative and carries
an extremely high degree of risk. It is possible that an investors
investment may be lost or impaired due to the speculative nature of
the companies profiled.
Media Contact
Company Name: Blue Hawk Media, LLC
Contact Person: Kenny Feigeles
Email: Send
Email
Country: United States
Website: https://www.greenlightstocks.com
Read more: http://www.digitaljournal.com/pr/4961999#ixzz6lPsPwhQS
SOURCE: Digital
Journal
Puration (CE) (USOTC:PURA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Puration (CE) (USOTC:PURA)
Historical Stock Chart
From Apr 2023 to Apr 2024