On April 16, Puration (OTCPK:PURA) announced topping the $1.0 million mark in revenue for 2018, reporting $1.2 million in sales and more than $500,000 in net profit. In providing some insight to the year and outlook going forward, the Texas-based maker of cannabis beverages this week took a moment to recognize Kali-Extracts (OTCPK:KALY), the company that licenses Puration the patented cannabis extraction process used in infusing its drinks.
Puration also spoke of its other public partners that are aiding in keeping up with – and increasing – demand for its cannabis waters.
The cannabis-infused beverage industry is still in its infancy, but attracting large investments. These have included Constellation Brands (NYSE: STZ) pouring $4 billion into cannabis-producer Canopy Growth Corp. (NYSE: CGC)(TSX: WEED), Molson-Coors (NYSE: TAP) partnering with Hexo (NYSE American: HEXO)(TSX:HEXO) and Heineken (Euronext: HEIA), amongst others, entering the space.
Puration chief executive Brian Shibley said that the Kali-Extract technology “empowered PURA to have what we believe to be the most clear CBD infused beverage on the market with the best taste and most consistent level of CBD.”
CBD is an acronym for cannabidiol, a constituent of cannabis and hemp heralded for its therapeutic benefits without delivering any of the “high” commonly associated with marijuana. The psychotropic buzz is the result of ingesting THC (tetrahydrocannabinol), a different component of cannabis (and one that is absent in hemp).
Puration, the sole licensee of Kali’s process, trumpets its drinks as having a higher CBD concentration than competitors. Sales kicked off about two years ago, with the launch of its flagship beverage, EVERx CBD Sports Water, in 2017. 2018 sales were up 350% from 2017. Puration has since added to the product line, now offering EVERx CBD Sports Water in several flavors, including unflavored, strawberry-kiwi, lemon-lime.
The company is running pilot sales and marketing programs to introduce new cannabis-infused beverages to consumers. Investors are looking ahead for a jump in sales following Puration setting a 2019 sales goal of $5.0 million, which is supported by a recent order in excess of $1.5 million to produce a private label CBD water and expansion into Europe.
Kali is not the only publicly-listed company working with Puration. The company is working with its co-packer partner Alkame Holdings (OTCPK: ALKM) to increase production capacity to meet growing demand, an area that the PURA has admittedly faced constraints. Further, Puration is collaborating with North American Cannabis Holdings (OTCPK: USMJ), the operator of the cannabis e-commerce site usmj.com, to update distribution channels to keep up with retail and wholesale orders.
Puration and North American Cannabis Holdings are sister companies, sharing ACI Conglomerated as the majority shareholder in each.
Elsewhere, Puration in the fourth quarter of 2018 sold its cannabis cultivation subsidiary to Nouveau (OTCPK: NOUV), for which PURA shareholders are to receive a dividend in the form of NOUV stock.
The relationship with USMJ goes further than just the online sales platform. This is owing to relationships of USMJ via the sale of its AmeriCanna Café Restaurant business in Q4 2018. Ultimately, West Coast Ventures Group (OTCQB: WCVC), the owner and operator of six restaurants in the Denver area under the Illegal Burger and El Senor Sol monikers, and USMJ have partnered for a roll-out of a pilot cannabis-themed restaurant. Puration’s EVERx drinks are now being offered at Illegal Burger.
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