Puration Inc (OTCMKTS:PURA) expects to receive a $5 million investment. The company will use the funds to support the takeover of cannabis edibles, beverages, and topical operations. It already divulged plans to clinch the market opportunities by acquiring smaller companies engaged in cannabis infusion operations. According to the analysis by several investment analysts in the cannabis space, consolidation is on the cards wherein larger firms acquire smaller cannabis companies.
Withdraws funds for acquisitions
Puration will withdraw funds when required to support the acquisitions. It will repay the debt in stock at a share price of $0.10. The company secures the debt with acquired assets. It expects to make a takeover offer in the next ten days.
Demand continues to grow for CBD
Goldman Research surveyed on behalf of Puration to know the demand for CBD in the wake of comments issued by the US FDA. Puration will use the survey results to gauge its approach to the CBD market. The survey measured the consumer’s reaction to the negative comments issued by the US FDA in respect of CBD. According to the survey, the comments of the FDA have little impact on consumer sentiment, and the demand for CBD continues upward.
Brian Shibley, Chief Executive Officer of Puration, said the survey provides the feedback because the company pursues options to expand cannabis-infused beverages production. It will include CBD infused topical and edibles in the production to meet the growing demand. He said the investment comes at a time when the company is moving forward aggressively to expand the production of CBD infused consumer products besides acquisitions.
Formal offer for CBD infused confections operation
Puration expects to make an offer for CBD infused confections operation within ten days. The target company is engaged in the production of CBD infused Gum and CBD infused Gummies. Following the takeover, Puration would merge the CBD confections business into its existing operations. It expects that the demand for CBD infused Gummies would reach $6.9 billion by the year 2025.
Puration is engaged in the production of EVERx sports water to meet the growing demand for the sports nutrition market. The company also distributes EVERx in Africa, the US, Europe, and Latin America.