Shares of Puration Inc. (OTC Pink: PURA) have been on fire. Since the start of February, the stock is higher by 144% based on its current $0.044 price. Going back to the beginning of the year and shares are higher by a staggering 388%. The excellent news for investors is these gains come as the company continues to make deals that can be quickly accretive to its operations. Thus, the rally is supported by substance.
A big announcement came in December that informed investors of its new 5% stake in Alkame Holdings, Inc. (OTC: ALKM). That deal is making money for PURA from the investment side, with shares of ALKM surging by more than 512% since the deal was announced. PURA may continue to accrue value from deals beyond just its accretive relationship with ALKM, noting a recently announced deal made by an ALKM subsidiary for an initial purchase from their Canadian Personal Protection Equipment (PPE) distributor Thera Products, Inc. for Alkame’s premium gel-hand sanitizer.
Then, on Tuesday, PURA announced that in conjunction with recently announced plans to break ground this summer on its 70-acre property in Farmersville, Texas, it will publish a multimedia, online presentation previewing construction plans. The production is scheduled for this Friday, February 12, 2021. This news came after PURA announced expanding upon its current EVERx CBD Sports Water business that generated approximately $2 million in annual revenue despite the consumer headwinds caused by COVID-19. Also notable, PURA announced the launching of a new hemp lifestyle brand business intended to raise overall market awareness and acceptance around the wide variety of industrial uses of hemp.
That string of news alone tells investors one thing- PURA is busy creating value. And, there’s more.
Puration Inc. Focused Multiple Market Opportunities
Halfway through February, PURA is showing no signs of slowing down its aggressive posture. The Farmersville, Texas project could put PURA in a prime position to capitalize on a massive opportunity to partner with hemp-related industry companies to pursue pilot enterprises that demonstrate the full utility of hemp. The hemp industry is an emerging sector, and the utility of the plant is enormous, ranging from industrial use to consumer products and clothing. That deal also brings together a partnership with PAO Group, Inc. (OTC Pink: PAOG) to build an indoor hemp cultivation operation intended to develop a proprietary, pharmaceutical-grade hemp cultivar. Thus, PURA is exploiting multiple opportunities.
And with Alkame Holdings Inc., PURA announced the two companies plan to produce and test market a CBD infused liquid sugar and a CBD infused pet food supplement,. Success in any of those markets could translate to millions in new revenues. Finally, it could all tie in with a deal made with North American Cannabis Holdings, Inc. (OTC Pink: USMJ), with whom PURA recently announced entering strategic negotiations.
While there are many moving parts, each partnership appears to present an accretive property that can maximize opportunities and create new ones. Thus, each of the stocks is moving somewhat in tandem as investors appraise each partnership’s value and investment stake.
The value has been a work in progress.
Video Link: https://www.youtube.com/embed/X6kngsIey8A
Bullish To Start 2021
As noted, investors started to take an interest in PURA toward the end of January. They began to push the share price higher after the company guided that its EVERx CBD Sports Water product will surpass $2 million in sales in 2020. Those expected results follow a strong year for sales in 2019 when sales also eclipsed the $2 million level. The great news going forward is that with pandemic headwinds starting to lighten, EVERx may be exceptionally well-positioned to accelerate growth into the remainder of this year. Again, while EVERx may be its flagship product, it’s just one part of a growing portfolio of products and interests that PURA plans to exploit this year.
Breaking ground on a 70-acre property in Farmersville, Texas, is atop the list.
Big Plans In Big “T”
Last week, Puration, Inc. said they finalized plans to break ground on its recently acquired 70-acre property in Farmersville, Texas. The new facility will become the primary base for Puration operations and is being built to maximize multiple opportunities and streamline revenues. The land and construct will each have dedicated purposes. Thus, no wasted space could translate to more room for revenue-generating products.
Specifically, PURA said that the facility is designed to do more than facilitate an expansion of EVERx. It will also be a critical part of a business plan to help launch its new hemp lifestyle brand business.
Seizing a quick opportunity there, PURA is creating partnerships with hemp-related industry companies to advance individual pilot projects that show the broad utility of hemp for multiple markets. The industrial hemp market, by the way, was a $5.33 billion opportunity in 2020. However, the market is expected to surge to $15.26 billion by 2027. Those numbers put PURA in the right market at the right time.
Finally, as noted above, PURA announced entering into strategic negotiations with North American Cannabis Holdings, Inc. (USOTC: USMJ) in a deal that can strengthen PURA’s interests in the CBD sector. USMJ currently operates a cannabis e-commerce business supported by an already integrated cannabis products logistics operation. The Farmersville project could contribute to an expansion of each other’s company. Thus, the share price rally has spread into USMJ.
Also, the association with USMJ could be a lucrative one. Last month, USMJ said it has initiated efforts to refresh the company business plan after the impact on the company’s cannabis-themed restaurant operations from the COVID-19 pandemic. The company has been known to make strategic investments. There’s another meaningful connection.
PURA and USMJ share the same majority shareholder. Thus, it’s likely that the strategic and synergistic strategy to optimize shareholder value for each company will trickle down quickly to its common shareholder base.
More From The Surge
As referenced, PURA has been busy. And investors expect things to stay that way. The company plans to extend its market reach by capitalizing on its exclusive license to a novel cannabis extraction process. With NCM Biotech, that deal provides PURA with a unique opportunity to penetrate new billion-dollar-market opportunities by leveraging the extraction technology. The license could accelerate creating new brands that target the massive CBD beverages, edibles, and cosmetics markets.
Terms of the license would also allow PURA to benefit from medical-use research conducted by NCM Biotech. That market, as investors have come to know, can be worth billions.
Tying all of these plans together could be the Biden administration making a bold move to eliminate many federal restrictions in the cannabis space. Speculation is that Biden will ease many of the current Federal regulations to allow states to govern and regulate the industry. If he does, it could provide a windfall of opportunity for PURA’s hemp focused business and EVERx CBD water market expansion.
PURA Is Multi-Faceted In 2021
For value opportunities that may return massive gains, Puration Inc. is one to consider. The shares have rallied on substance, but there appears to be substantial room to run much higher at current valuations. Indeed, the guidance already laid out sets the stage for several near-term milestones to be reached. It is also worth noting that PURA shares have traded at much higher levels and with an infrastructure and diversified business plan that was less extensive than it is today.
Investors like value, and investors also like having multiple shots on goal. PURA offers both. And if PURA can continue to advance its numerous projects, its massive gains to date may pale compared to what it can generate once these initiatives take root.
Thus, the 388% surge in share price since the start of the year may be the beginning of a long-term sustainable rally. Clearly, if fundamentals catch up with the share price, that would undoubtedly be the case.
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