Puration Inc. stock is jumping after announcing another deal to enhance its revenue-generating potential. Even better, the jump on Wednesday add to a surge in September, with shares rising 38% since the start of that month. A number of updates helped ignite the rally. Another earlier this week adds more fuel to its bullish proposition.
On Wednesday, PURA was part of a joint announcement with PAO Group, Inc. (USOTC: PAOG) saying the two will partner to development a line of CBD products targeted for sale in the Women's Health market. The better news is that they have academic muscle behind the project, saying they have engaged Dr. Harriet Kamendi, a graduate of Howard University's Department of Pharmacology with post-doctoral studies at George Washington University, to develop the product line. In addition to her ongoing research, Dr. Kamendi is an extensively published and recognized healthcare research scientist with notable research in CBD-based treatment alternatives.
The more excellent news is that its developing Women's Health CBD product line could be the first of many deals expected through the previously announced product partnership under PURA's Farmersville Hemp Brand initiative. That deal leverages IP owned by PAOG covering research into CBD extraction processes and is patent protected (U.S. Patent No. 9,199,960). PAOG, by the way, is developing both pharmaceutical and nutraceutical treatments for humans based on this intellectual property. However, while all theirs now, PURA appears to be showing its value to become part of new deals.
That's the plan. And its not about nutraceuticals, either. PURA recently entered an LOI with publicly traded UC Asset LP (OTCQX: UCASU) to expedite its Farmersville Hemp Brand initiative. The funds from UCASU are expected to accelerate commercial development as well as add potential funding to PURA's partners to build CBD-based on hemp growing projects. Last month, UCASU announcing its intent to expand its real-estate investment interests into the cannabis and CBD grow markets. Shares in UCASU are responding well to its news as well.
But good news for UCASU investors is excellent for PURA investors too. Its shares are rising as the company continues to make progress on a number of initiatives that could turn milestones into catalysts by the end of the year. And with its deal with UCASU likely closing in November, a significant catalyst is already in sight. What's in play? Frankly, quite a bit.
A Mission To Exploit Billion-Dollar CBD Markets
Foremost, a financing deal with UCASU accelerates PURA's plans to penetrate the hemp markets and embed themselves as an early player in what is becoming a multi-billion dollar industry. But, it's more than a simple real-estate deal. For PURA shareholders, the benefits extend further by extending the reach of the agreement to its Farmersville Hemp Brand partners.
Notably, those deals include development and logistics deals with North American Cannabis Holdings, Inc. (USMJ), PAO Group, Inc. (PAOG), and Alkame Holdings, Inc. (ALKM). More deals are expected as PURA commences its Farmersville Hemp Brand initiatives. Moreover, PURA can leverage its planned financing deal to create shareholder value from an asset perspective and maximize the potential to build out a significant business pipeline.
In fact, with UCASU potentially assisting USMJ, PAOG, and ALKM, PURA will be well-positioned to emerge in 2022 as a fully integrated product development and distribution company. And keep in mind, UCASU may be able to bring more to the table. With its stock trading at about $1.75 a share, they have the ability to tap the equity markets for capital at reasonable terms. Thus, UCASU as a financing partner is an asset that should not go unnoticed.
Still, there's more in the works, with PURA capitalizing on opportunities in 2021 to make 2022 its breakout year.
A Tailwind Of Opportunity
The great news for PURA and its investors and they are doing well in the face of unprecedented business challenges. Despite a crippling pandemic that put a near halt to global business and sent micro-cap stocks crashing, PURA has been actively taking advantage of creating a more prominent company by combining the strengths of many. Its Farmersville project is a prime example.
That coop exemplifies that how thinking out of the box can lead to potentially enormous success. Rather than fighting the industry behemoths head-on, PURA is instead taking a track to combine forces with smaller companies with different levels of expertise and interests in the sector. The plan has been described by PURA as launching an initiative to build a cooperative of hemp growers and processors all selling under one brand name, Farmersville Hemp, similar to how Sun-Maid Raisins collectively markets for growers all selling under one brand name. Hence, while the package says Sun-Maid, multiple growers and logistical partners contribute to getting a final product to market. The result turned a small company into a global raisin-selling giant. It's a model PURA extends to exploit.
And there's no reason they can't. That's especially true after acquiring its 72-acre parcel of land last year to establish its presence. Now, not only is that land going to be improved, PURA teams with an investor group that recently announced expanding its strategy to enter the cannabis and hemp real estate market. The expected closing follows another deal where PURA confirmed its partnership with PAO Group, Inc. (OTC Pink: PAOG) to accelerate and strengthen revenue-generating opportunities within the CBD side of its new Farmersville Hemp Brand initiative. Thus, despite its September-October run, there is still a tremendous amount of value left on the table if PURA executes its strategic plans.
52-Week Highs In The Crosshairs
In fact, a bigger part of the near-term value proposition lay in PURA's interests in partnerships to get CBD-based nutraceuticals to market. Those deals tap into a roughly $5.2 billion market today. But, it's expected to explode into a $36 billion market by 2026 as people worldwide take opportunities to learn about the benefits of hemp oils and CBD as an alternative to over-prescribed, addictive narcotics. The better news for companies with exposure to the sector is that it isn't going away. Instead, as more states legalize at least some form of use, the markets can grow beyond even the loftiest of expectations.
And with PURA partnering with PAOG in its commercialized nutraceutical initiatives and now expected to close a deal to finance its buildout, PURA has never been better positioned to create shareholder value in the coming weeks and quarters. This could become an instance where investor patience is indeed a virtue.
Moreover, with PURA leveraging the expertise of many toward a common revenue-generating goal that exploits opportunities in growing, developing, and marketing multiple hemp-derived and CBD products, that patience may be well rewarded.
Q4 Initiatives Put PURA On 2022 Launch Countdown
And investors can't forget that PURA is positioned to benefit from its other interests in addition to those mentioned. Its EVERx CBD-infused sports water is one having tremendous potential. Sales of that product were trending toward the $2 million before the pandemic created production and logistical nightmares for the wholesale and retail sectors. Still, while sales were impacted in 2021, the takeaway from the sales made before the pandemic strangling the economy showed accelerating growth. Since then, PURA announced new formulations, including sugar-free, intending to attract a broader user base. An update on this product could also send shares back toward 52-week highs.
Other deals with Alkame Holdings Inc. have the two test marketing a CBD-infused liquid sugar, a CBD-infused pet food supplement, and CBD-infused consumer products. Like EVERx, these products are tapping into their own massive market segments. And by having its distribution and packaging partner in place through Alkame, some of these finished products could get to market in early 2022.
The most excellent news is that PURA is creating a company that can be competitive in multiple multi-billion dollar sector opportunities. Also, its mission is diversified, which mitigates risk and adds potential for multiples of revenue expansion. So, while shares are doing well, there's plenty of reasons to justify the bullish sentiment.
Thus, for PURA investors, timing is everything. And its time may be now. Is PURA's 52-week high in of $0.07 in the November crosshairs? Maybe not. However, when these deals come together, that target is probably more than in the crosshairs, it's on target.
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