Puration Inc (OTCMKTS:PURA) recorded robust revenues of $2.7 million (up 121%) in 2019. Its revenues in Q1 2020 reached $805,000 (up 173%). The company is maintaining consistent growth in revenues since bagging the pre-orders for its EVERx Sports Water.
Expands distribution network
EVERx sports water is a huge success for Puration. The company is maintaining higher revenues even during the current coronavirus crisis. Puration gives priority to improve and develop its flourishing sports water business by adding new flavors. It has substantially expanded its distribution network in South America, Africa, and Europe. Puration expects to introduce organic cannabis beverages that comprise TranquiliTea and THCSavor cannabidiol beverages.
Acquires CBD Confections Company
Puration has taken over CBD Confections Company as part of its strategy to edibles, CBD beverages, and topical businesses. The company also took over the CBD pet product firm in 2020. Puration is targeting cash-starved startups for acquisition this year and signed an LOI to take over CBD infused Sun Care business.
Mobilizes $5 million to support acquisitions
Puration has mobilized $5 million in February 2020 to support its acquisition spree. The company will draw the funds as collateral when necessary for the takeovers with the acquired assets.
Puration also holds a license for the cannabis extraction process in the US. The company has obtained an exclusive license from NCM Biotech for edibles, beverages, and cosmetics. Puration also has access to the medical research being conducted by NCM Biotech.
Guidance for 2020
Puration has issued guidance for 2020, considering revenues mainly from EVERx CBD sports water. The company also includes revenues generated from organic beverages and acquired assets in its 2020 guidance.
A Spinoff of cannabis cultivation arm
To focus on cannabidiol infused products, Puration decided to spinoff cannabis cultivation. Interim CEO of Puration, Brian Shibley, will oversee the spinoff activities of the cannabis cultivation business. The company has recently relocated its cannabis cultivation to the new property. The regulations in Texas are now friendly for hemp farming. As a result, Texas-based universities are focusing on research farming in this segment. Puration also chalked out a plan to unwind NOUV transactions and focus on spinoff simultaneously.