Despite the massive pandemic-created headwinds, PAO Group, Inc. (OTC Pink: PAOG) has met or exceeded its performance guidance. And 2021 is shaping up to be the company’s busiest and potentially most lucrative year in history.
In fact, this week, PAOG announced that its planned launch of a CBD Nutraceuticals product line remains on track to be completed and launched this year. The rewards can be substantial, with the CBD nutraceuticals markets valued at $5.2 billion in 2020 and is expected to grow as high as $16.4 billion by 2027. Explaining how they will capitalize on multiple opportunities, PAOG published a shareholder update on Thursday, detailing the contributions of PAOG partners, Alkame Holdings, Inc. (ALKM) and North American Cannabis Holdings, Inc.’s (USMJ) collaborative CBD-based development programs. The update also included information on the intended distribution of PAOG stock to PURA (OTC Pink: PURA) shareholders relating to PAOG’s recent acquisition of PURA’s cannabis cultivation operation.
Indeed, PAOG has done well during the first half of 2021, and now benefitting from a new production facility and additional partnerships, the company is better positioned than ever to expand maximize its market opportunities.
Targeting the $15B CBD Industry with Novel Solutions
PAOG’s update also focused on the latest developments and initiatives involving its CBD-based nutraceuticals line. PAOG noted that these products are still expected to begin generating income this year, and that the company is constantly searching for new CBD-related applications and opportunities to widen their overall market presence.
The first product expected to be released by PAOG is its CBD RELAX-RX, which is intended to alleviate symptoms caused by depression and anxiety. Notably, the CBD-based solutions have been gaining popularity within the $15 billion anxiety and depression treatment markets. And PAOG’s formulations specifically target those potentially lucrative markets.
Moreover, the company’s ongoing studies targeting COPD, or chronic obstructive pulmonary disease, are expected to become a second source of PAOG’s revenue generating potential by leveraging its CBD Nutraceuticals portfolio. They refer to a 2015 study indicating that CBD could assist in opening the bronchial passages, and PAOG believes it might become a preferable alternative to traditional pharmaceuticals in the treatment of COPD-related ailments.
The company’s third CBD Nutraceutical product is EVERx CBD Sports Water, a collaborative effort between PAOG and Puration, Inc. (OTC Pink: PURA). The EVERx CBD Sports Water line has already demonstrated success, with the company planning to release a sugar-free variety this summer. The drink capitalizes upon consumer trends that are moving away from soda, and with access to Alkame Holdings, Inc.’s new facility, the company will be able to be able to nearly double its current production output.
Finally, one of the long-term focuses of PAOG involves the development of RespRX, a CBD-based pharmaceutical treatment for chronic obstructive pulmonary disease. RespRX is derived from a proprietary method of extracting cannabidiol – U.S. Patent No. 9,199,960 entitled “METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT.” – and is said to produce a high-quality extract similar to that of industry giant GW Pharma. This patented process will allow PAOG to monetize the asset through licensing agreements, allowing the company to make significant profits from the extraction process without any additional work on their part. The RespRX platform is one of PAOG’s main priorities, and any favorable news about its progress is near guaranteed to boost the stock price.
PAOG is Primed for Expansion
The potential benefits of a long-term investment in PAOG may be provide potentially exponential long term returns. And with PAOG planning to release the first of its CBD Nutraceutical products by the end of this year, those gains can come sooner rather than later. Better still, due to the continued easing of government regulations involving cannabis and hemp related industries, PAOG could be able to quickly expand its operations into previously unreachable sectors. The loosening restrictions will also work to expedite the commercialization process of CBD-based products, as well as attract previously wary businesses and consumers into the sector. PAOG has already secured several collaborations that will help it expand its operations in the US, and with the country’s decriminalization movement gaining momentum, the company is well-positioned to capitalize on the opportunities that await it.
Despite the economic challenges brought on by the pandemic, PAOG’s recent developments have kept investors excited about its future potential. One of this year’s key developments involved PAOG’s engaging Veristat, a leading contract research company (CRO) that will assist PAOG’s products through regulatory approval. This partnership will play a key role in the development of RespRX and the verification of its underlying research, allowing the company to swiftly bring an effective product to market and begin earning revenues.
Between the upcoming release of its CBD Nutraceuticals, as well as having its ongoing research developments now bolstered by Veristat, PAOG is primed for a breakout 2021. The company’s long-term development plan, engagement with a CRO, and openness to additional acquisitions and partnerships all combine to form an incredible investment opportunity at its current share price.
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