DALLAS, March 6, 2020 /PRNewswire/ -- Puration, Inc. (USOTC: PURA) and Kali-Extracts, Inc. (USOTC: KALY) announced today that the two companies plan to close the their previously announced CBD Confections deal next Friday, one week from today. PURA is acquiring KALY's CBD Confections operation. KALY has developed the Hemp4mula CBD Confections line that today sells CBD infused gummies and gum. KALY is selling the operation to streamline its focus on its ongoing cannabis biopharmaceutical business.
KALY's proprietary CBD formulation has been developed for the treatment of symptoms associated with Chronic Obstructive Pulmonary Disease (COPD) and other similar respiratory conditions. The formulation for the treatment of symptoms associated with COPD and other similar respiratory conditions has been derived from the company's U.S. Patented Cannabis Extraction Process. As detailed in a recently published research study (Journal of Cannabis Research) the KALY U.S. Patented CBD extract provides significant anti-inflammatory responses in vitro. The next phase of research is now moving forward in preclinical in vivo research to expand evaluation of the effects on lung function, total body distribution, whole body clearance of the extract and dosage evaluations for maximal efficacy. KALY has filed a new patent application specifically on its CBD formulation for symptoms associated with COPD and other similar respiratory conditions. KALY has also filed for a trademark on the name RespRx as the brand name for its CBD formulation to treat the symptoms associated with COPD and other similar respiratory conditions that result from respiratory inflammation.
In conjunction with the PURA's acquisition of KALY's CBD Confections operations, PURA reported that a fairness opinion on the target CBD Confections acquisition coming from a third-party analyst is expected to be complete next week prior to the acquisition closing. The fairness opinion has been undertaken as one of the conditions of the agreed acquisition terms between PURA and KALY.
PURA recently launched a campaign to acquire CBD infused beverage, edible and topical operations and also announced closing on a $5 million investment to fund the acquisition campaign. The $5 million investment is structured as a debt facility whereby funds can be drawn as needed to fund acquisitions. The drawn funds would be secured by the acquired asset and the debt can be repaid in stock at $0.10 per share.
PURA last week announced the acquisition of a CBD Infused Pet Products operation. The seller currently provides concierge pet services through an online portal and the CBD Infused Pet Product Line will bear the name of the portal. PURA will have access to the portal and the existing customer base in conjunction with the purchase agreement. The CBD pet products market is anticipated to reach $1.16 billion in the U.S. alone by 2022.
PURA is currently working to build a pipeline of more acquisition opportunities.
For more information on Puration, visit http://www.purationinc.com.
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
SOURCE Puration, Inc.; Kali-Extracts, Inc.