DALLAS, April 30, 2020 /PRNewswire/ -- Puration, Inc. (USOTC: PURA) today released CBD business acquisition campaign update from CEO Brian Shibley. The company launched the campaign in January this year and subsequently secured a $5 million investment to back the campaign in February. Two acquisitions have already been closed and the company recently announced entering into due-diligence engagements on three more prospective acquisition opportunities. The campaign has gained momentum since January and management anticipates accelerated momentum yet to come with plans for more investment capital to fuel the campaign and market conditions evolving in favor of the campaign. The update for expanding into the CBD market expected to reach as high as $20 billion as soon as 2024 is included in its entirety below within in this release.
CBD Business Acquisition Campaign
In January of this year, 2020, PURA launched a campaign to acquire CBD beverage, edible and topical businesses to include CBD businesses that targeted pet products. The campaign was intended to target a robust market of creative and promising young companies starved for investment in the waning 2019 cannabis capital market.
PURA's campaign strategy was built on two primary components:
CBD Technology Differentiation
PURA owns a license to a U.S. Patented cannabis extraction process backed by extensive university medical research. The license, issued by NCM Biotech, is exclusive for beverages, edibles and cosmetics among other uses. NCM Biotech is focused on medical research and Puration has access to that research. See a recent research report on CBD extracts derived from NCM Biotech's patented extraction process: Journal of Cannabis Research.
In February, PURA secured a $5 million investment to fund acquisitions of cannabis infused beverage, edible and topical operations. The $5 million investment is structured as 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 management is actively pursuing additional investment to increase the potential of the current acquisition campaign.
COVID-19 Acquisition Campaign Acceleration
The onset of the Coronavirus impact on the global economy has exacerbated the 2019 investment capital squeeze on cannabis ventures into 2020. The further tightening on capital has resulted in what currently appears to be an increased cannabis business market-wide appetite for exploring merger and acquisitions. PURA has experienced an increase in unsolicited m&a inquiries.
To date, PURA has executed its firs to acquisitions. PURA has acquired a CBD infused confections business that currently sells CBD gummies and CBD gum. PURA is working now to rebrand and relaunch the CBD confections products. Grand View Research, Inc. recently reported that the global CBD gummies market is expected to reach $6.94 Billion by 2025.
PURA has also acquired a CBD pet products company. 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 to market the CBD infused pet products. The CBD pet products market is anticipated to reach $1.16 billion in the U.S. alone by 2022.
PURA has three new target acquisitions currently undergoing a due diligence review. Look for updates coming soon.
The outlook for CBD sales does not correlate with the either the 2019 cannabis investment market let alone the prevailing COVID-19 market. Multiple forecasts support substantial year over year growth reaching as has as $20 billion in global CBD sales as soon as 2024. The apparent disconnect between investment enthusiasm and forecasted growth validates for PURA management the current acquisition campaign opportunity.
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.