PURATION – PURA SALES SOARING WITH BOOMING CBD BEVERAGE DEMAND

December 4, 2019 -- InvestorsHub NewsWire -- via Seeking Alpha 

Source: Seeking Alpha Dec 3, 2019

• Cowen says CBD sales could hit $16 billion by 2025.
• Of 650 Chefs surveyed at the American Culinary Federation, 75% said cannabis infused beverages will be the hottest trend starting in 2019.
• Puration – PURA is among First-To-Market with CBD Beverages
• PURA early CBD beverage sales already soaring and expected to hit $4 million in 2019 and $8 million in 2020.
• PURA adding CBD Tea and CBD Coffee.
• PURA shares are $.05

Puration launched the EVERx CBD Infused Sports Waters in the spring of 2017. EVERx has since become the leading CBD infused beverage in the sports nutrition market place. The company's sales grew 600% in the first year after the launch of EVERx. Kiwi Strawberry and Lemon Lime flavors are now available in addition the Original EVERx CBD Infused Sports Water. EVERx has more than twice the CBD of most CBD infused waters on the market. A proprietary technology enables EVERx to suspend more CBD than its competitors and still have a crystal-clear appearance and a refreshing taste. The company has recently initiated a package redesign after extensive market testing of a new logo design. Consumer demand for CBD infused beverages is growing and Puration is likewise receiving inquiries from a broader array of retail outlets. The package redesign is the first step of a comprehensive marketing plan to dramatically increase EVERx sales over the next 24 months.

Building on Puration's success with the introduction of it's EVERx CBD Infused Sports Water, the company is reorganizing to concentrate its efforts on the cannabis beverage industry. The plan to concentrate on the cannabis beverage industry has been validated by global alcohol giant Constellation Brands' (Corona Beer, among others) recent $4 billion investment in Canopy Growth. Puration has already launched an initiative to introduce a new THC infused beverage in Canada in conjunction with Canada's nationwide legalization of recreational marijuana and more recent legalization of cannabis infused beverages and edibles. A formula for the beverage called THC Savor has already been developed and a distribution plan is already being built. Puration is implementing a campaign to introduce other cannabis beverage operations as part of an overall strategy to accelerate an expansion of the company's portfolio of cannabis beverage brands.

EVERx Sales Growth

EVERx is the leading CBD beverage in the sports nutrition market place. It’s presence at the Arnold has grown over the last three years to monumental proportions this year. There is no better place for EVERx to be exposed to distributors in the sports nutrition market place. The largest distributors in the industry are sponsors at the Arnold. EVERx won the interest of gym chains, sports nutrition distributors and mega food and beverage distributors with a sports nutrition segment. PURA came away from the Arnold with signed new orders and two mega distributors beginning due diligence on PURA’s EVERx beverage. Management plans to make independent announcements in the coming days and weeks about each new sales contract in addition to elaborating on the due diligence progress with the two mega distributors.

PURA recently announced that the company has partnered with North American Cannabis Holdings, Inc.(USOTC: USMJ) (“USMJ”) to add a B2B eCommerce function onto USMJ’s recently launched consumer eCommerce site at www.USMJ.com. The B2B eCommerce function will launch first to provide buyers with the ability to make wholesale purchases of PURA’s EVERx CBD Sports Water. PURA has licensed a major customer relationship management (CRM) software solution to build a cannabis industry big data capacity into USMJ’s eCommerce site. The CRM empowered cannabis wholesale buyer and retail consumer big data analytics capacity is designed to position USMJ.com as the preeminent cannabis industry online marketplace. The B2B eCommerce site is currently being pilot tested and expected to go live imminently. The B2B launch announcement will include details on the CRM solution and big data capacity.

EVERx Marketing and Brand Building

The Arnold Sports Festival is the leading venue for sports nutrition products around the world. In addition to the annual event in Columbus, Ohio, the Arnold Sports Festival has annual events in Australia, South America, Africa and Europe. In addition to continuing to expand the EVERx brand through the annual Arnold Sports Festival in the United States, PURA will here forward be a part of the Arnold Sports Festival globally. Look for an upcoming announcement about EVERx at its next Arnold Sports Festival event.

PURA Product Development

PURA has licensed a patented cannabis extraction process from Kali-Extracts (USOTC: KALY) (“KALY”) for use in its beverages. PURA and KALY are working closely together on the development of a CBD infused beverage with 25 mg of CBD. The general industry standard in the beverage industry is 5 mg. PURA’s EVERx is already ahead of most of the industry with 10 mg of CBD. PURA and KALY have been contracted by Generex Biotechnology (OTCBB: GNBT) to produce a private label water under a Generex brand name. A 10mg water is in production. In the meantime, PURA and KALY are working together to introduce a 25 mg version of the Generex private label product.

PURA has more beverages in addition to EVERx starting to hit shelves now. Look for announcements coming soon.

PURA M&A

The legalization of recreational marijuana in Canada last year and the recent legalization of hemp farming in the United States has ignited the market for cannabis investments in addition to heating up the M&A market for cannabis enterprises. The M&A activities of Canopy Growth (NYSE:OTC:CGC) and Aurora Cannabis (NYSE: ACB) makes almost daily news. CBD infused beverages are topping the list of M&A candidates and PURA’s success with EVERx has pushed PURA to the top of numerous target M&A lists. PURA’s visibility at the Arnold has moved PURA even further up those target M&A lists. CEO Brian Shibley reports that “hardly a day goes by where we do not receive an M&A inquiry.” The company has only so far entertained two of the inquiries, one on behalf of a prominent beverage industry player, and one from a competitor. Mr. Shibley reports PURA is also looking at acquisitions of its own. “We have introduced to our co-packer partner the idea of their company being acquired by PURA.” The co-packer acquisition is only a conversation at this stage with more ground to be covered before a formal offer would be advanced, but Mr. Shibley reports, “we are keen on the idea at this moment.”

Analyst Speculative Buy Recommendation and $0.25 PPS Target with $0.35 Upside

Goldman Small Cap Research issued a research update on Puration, Inc. (USOTC: PURA) last week recommending a 'speculative-buy' rating with a target price-per-share of $0.25, with noted potential upside to the $0.35 mark.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Seeking Alpha

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