DALLAS, June 30, 2020 /PRNewswire/ -- Puration, Inc. (USOTC: PURA) today released a management update to provide the latest details regarding the company's horizontal CBD market expansion efforts. The horizontal market expansion strategy is centered on an acquisition campaign launched in January of this year. The company has executed four acquisitions so far this year. The update is included in its entirety below:
Horizontal CBD Market Expansion Update
Even before the economic impact of COVID-19, PURA had initiated an acquisition campaign to take advantage of the 2019 cannabis sector slowdown by rolling-up CBD infused product lines having difficulty finding continued access to growth capital.
Prior to its acquisition campaign, PURA had established traction with an independently developed product for the sports nutrition industry. PURA's revenue is generated today primarily through the sales of its EVERx CBD Sports Water. PURA reported $2.7 million in annual sales last year and $800,000 in the first quarter of 2020.
In January of this year, PURA initiated an acquisition campaign to introduce a solution to the cannabis sector-wide challenge with access to capital by leveraging its own core competencies to acquire CBD infused beverage, edible and topical businesses.
PURA targets CBD product acquisitions that can be enhanced with PURA's patented technology. 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.
PURA's horizontal reach across multiple markets expands the overall market opportunity. Last week the company announced its fourth acquisition of the year acquiring a CBD infused sexual wellness product line. Since launching the acquisition campaign in January, the company has additionally acquired a CBD confections business, a CBD pet products business and CBD sun care business. Combined with its existing beverage industry product line, PURA's combined horizontal market opportunity ranges across over $2 trillion in market value:
In conjunction with the acquisition campaign, PURA secured a $5 million investment to fund its acquisition efforts. PURA concentrates on making acquisitions in exchange for royalty agreements and a commitment for PURA to fund a marketing expansion of the product line.
PURA is developing a single brand name identity and unified marketing strategy that can cross all five industries listed above in addition to any new industries PURA may enter with future acquisitions. As the branding and market strategy develops further, PURA will share more details.
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.