Puration Inc. (OTCMKTS:PURA) has announced the signing of a letter of intent for the acquisition of a CBD-infused sun care products producing enterprises. The global sun care products currently valued at $8.5 billion could reach $10 billion in four years.
Puration eyeing acquisition of struggling CBD businesses
At the beginning of this year, the company launched a CBD business acquisition plan, and it seems the campaign is gathering momentum, and Puration had been entertaining new unsolicited investor interest to back the campaign. The campaign focuses on the market for promising and creative businesses starved of cash due to the slowing of the cannabis market in 2019.
The company secured a $5 million investment in February to support its acquisition campaign. So far, the company has closed the acquisition of CBD pet products and CBD confections companies. Recently the company announced that it had entered due diligence arrangement on another three potential acquisitions.
In a recent update on the company’s acquisition campaign, Puration indicated that the $5 million investment it secured was in the form of a credit facility. As a result, the company can only draw funds when necessary to fund the acquisitions. On the other hand, the asset the company will acquire will secure the drawn amount, and repayment will be in the form of shares at $0.10 for each share.
Puration management pursuing more investments to fund acquisitions
The company’s management indicated that there have been several investment funds that have contacted the company seeking to support the campaign. Management is currently pursuing more investments to enhance its position as it seeks more acquisition opportunities.
The company’s main focus company is the acquisition of CBD product businesses that it can enhance through its patented technology. The global CBD market is full of potential, and it is likely to hit $20 billion by 2024. Puration has a US Patented licenses to a cannabis extraction procedure that is backed through extensive medical research. The license was issued by NCM Biotech and is exclusive to CBD derivatives like edibles, cosmetics, and beverages.