Alkame Holdings (ALKM) Inks $1
Million Sales Contract for PPE Product Line; Positioned For
Exponential Growth In Back Half Of 2021 (ALKM)
Miami, Fl -- May 12, 2021 -- InvestorsHub NewsWire
-- Last week, Alkame Holdings, Inc. (OTC Pink: ALKM)
announced signing a long-term contract with Aladyn Protection
Systems, LLC, to supply its new Personal Protection Equipment (PPE)
product line. The deal could become a long-term value driver for
ALKM and be a catalyst for growth in the back half of the year.
It's also the latest in a series of positive
announcements.
Aladyn is a major wholesale distributor of personal protective
equipment (PPE) specializing in serving the travel and hospitality
industries, with a logistics center located in Miami, Florida.
Aladyn's purchases of PPE inventory from Alkame are expected to
ramp up under the deal, with the scheduled order size doubling
every ten weeks to reach a target of $1 million in cumulative sales
from Alkame in the first year. Sales are likely to remain constant
into 2022.
The deal came after ALKM capitalized on a substantial market
opportunity. As the pandemic caused economic distress throughout
2020, Alkame, and its subsidiaries, quietly changed their focus to
supplying high-quality personal protective equipment (PPE) for
first responders and the medical sector. Although securing
licensing, compliance inspections, certifications, and formulations
took time to complete, the strategy took root with ALKM initially
awarded PPE sales to the State of Oregon. As the year went on,
Alkame secured a Canadian distribution partner for PPE and provided
the required information and documentation for export. Exporting
these high-demand products could generate exponentially more
revenue later this year and well into 2022.
In fact, ALKM's focus on the PPE sector should be recognized as
a long-term opportunity and one that complements Alkame's regular
co-packing market, which is expected to enjoy a revival in revenues
as COVID-19's economic impact fades. Normalized markets should
equate to higher sales.
The excellent news is that there is depth to ALKM's product
pipeline. And one of its most promising product lines targets the
massive CBD market.
Alkame Holdings is Looking Stronger than Ever
In April, ALKM introduced a new line to its flagship product. In
doing so, Alkame Holdings has taken a big step toward expanding its
revenue stream with the planned release of its All-New Sugar-Free
EVERx CBD Sports Water. The specialty water would be sold alongside
the already-available EVERx CBD Sports Water, which generated
around $2 million in sales last year. With a new sugar-free variety
set to hit the market, the drink has the potential to reach an even
larger audience.
As shoppers stay "carb aware," sugar-free alternatives to
products like Monster Beverage (NYSE: KO) are
beginning to earn a sizable share of shelf space, with even Monster
themselves giving more focus to sugar-free formulations. The trend
especially makes sense for EVERx Sugar-Free CBD Sports Water, as it
retains all of the advantages of its initial recipe while lowering
calories and eliminating unnecessary carbohydrates. With these
changes over the initial formula, it's expected that the reachable
market for EVERx CBD Sports Water will expand even further to
include the carb-conscious, those watching their calories, and even
those who must watch their sugar intake for medical reasons.
The new product further extends the company's partnership with
Puration, Inc. (OTC PINK: PURA), a
long-time partner who was instrumental in creating and bringing the
original EVERx CBD Sports Water to market. What's more, the team is
already collaborating on new CBD-infused products outside of EVERx,
with another product announcement expected shortly. Investors could
expect stock valuations to jump substantially following an
announcement, especially from its strengthening of agreements with
its distribution and marketing teams.
A New Facility Brings New Possibilities
ALKM is also working with another company that can bring
logistical and industry expertise to the table. According to
Alkame, North American Cannabis Holdings, Inc.
(USOTC: USMJ)
joined the team along with PURA to help with the market
introduction of Sugar-Free EVERx CBD Sports Water. USMJ brings
solid experience in the CBD sector, and with its familiarity with
specific distribution channels, can help ALKM optimize the product
launch.
Investors should also keep in mind that ALKM already has a
robust distribution network in place, which could expand both their
product line and consumer base. Although the stock may have been
floating at sub-penny prices, the company has been working hard
behind the scenes to complete its new West Coast Co-Packer factory.
The new facility will nearly double production capabilities through
higher-speed equipment, and the ramp-up in production rates alone
should result in a considerable boost to this year's revenues.
Aside from the additional space and capacity, the new production
location would also allow ALKM to improve its third-party health
inspections beyond what it can currently do. Even better, the
Gervais facility enables ALKM to seek one of the most critical and
highest-rated compliance certifications available. This
certification would open the door to substantial growth, enhance
relationships, and open up new markets for businesses looking for a
distribution and sales channel partner.
Moreover, ALKM has detailed a multi-channel distribution
strategy with a direct-to-consumer sales model, which will be
implemented this year. This opportunity is a product of the
company's acquisition of DistributorCorp and will enable it to
supply sanitizer and other PPE products to national clients through
the internet. Those products fall under the company's
non-hemp-related category, including its Alkame brand of premium
oxygenated alkaline filtered water. The company is currently
working to obtain export approvals for some of its popular consumer
brands and goods. If those permits are earned, share prices at
these levels present a massive value opportunity.
Moreover, the sum of its parts should already equate to a much
higher valuation.
2021 Brings Expansion Opportunities
In fact, one could argue that Alkame Holdings is now in the best
operating position in its history. A recent shareholder update
detailed how ALKM responded to the unprecedented economic
challenges of the pandemic and how its CEO positioned the company
to weather the storm that was 2020. Most importantly, he mentioned
that despite the severe economic disruptions, the company's supply
and distribution systems are still operational. Better still, he
noted that the steadily improving economic conditions are finally
providing some relief to retail locations, which bode well for ALKM
product sales in the near term.
Therefore, ALKM stock should be measured on current events
rather than how it fared throughout the pandemic-plagued market. In
fact, Alkame Holdings has done an excellent job of enhancing its
capabilities, placing itself in a strong position for rapid growth
thanks to upgraded infrastructure, innovative products, and
synergistic alliances.
ALKM Poised for a Breakout 2021
No doubt, navigating through the pandemic's economic roadblocks
was an unprecedented challenge for businesses. While several
companies struggled to keep up, others took advantage of the
downtime to rebuild and develop new strategies to combat a changing
market environment. The latter is well-exemplified by Alkame.
Alkame made it through the pandemic, and its distribution
subsidiary helped provide products such as sanitizer and PPE that
help prevent the spread of COVID-19. This social contribution
happened simultaneously to the company developing innovative
tactics to succeed in an evolving market. With all of this
considered, not only is ALKM a survivor, they are now stronger than
ever.
The good news is that, as COVID-related restrictions across the
country loosen, ALKM stock could be poised for a rally as its goods
and services re-enter normalized market channels. Analysts are in
agreement that pent-up demand for consumer goods could result in
one of the most amazing snap-back rallies in history, with
increased consumer spending likely to benefit sectors across the
board.
Alkame Holdings' decision to build up instead of break down this
year could pay off handsomely. And with several expected company
updates on the way combined with ALKM's facility upgrades that
support more significant volumes... record production and
record-setting revenues could come sooner rather than later. At
current levels, ALKM could be serving up a compelling investment
opportunity.
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Source - MarketWatch.com/ALKM
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