PURATION, INC. (USOTC: PURA) Cannabis Beverage Brands
The producer of EVERx CBD Infused Sports Drink, the leading CBD beverage in the sports nutrition market place.
Puration Inc Garners Interest From $330 Billion Beverage Industry Brand Name Players
Puration, Inc. recently released an online management presentation to provide more detail on its corporate restructuring to concentrate resources on its rapidly expanding cannabis infused beverage business. The presentation includes details on the recently announced spinoff of its cannabis cultivation business and the pending dividend distribution of spinoff stock. The presentation also includes details on the company’s current two cannabis infused beverages and the recently announced letter of intent to acquire a company with a third cannabis sector beverage. The presentation highlights the company’s overall strategy to optimize the movement of major brand name beverage industry players into the cannabis sector in addition to reporting recent interest shown by some brand name players into Puration’s experience in the cannabis infused beverage sector. View the presentation on the company’s website or read the narrative from the presentation included in its entirety below:
Puration Cannabis Infused Beverage Industry Restructuring Strategy Presentation
Major beverage industry players are jockeying for position in the nascent cannabis infused beverage market. Canada’s legalization of recreational marijuana, which goes into effect next week, triggered Fortune 500 sized interest in the cannabis sector. Up until Canada’s vote to legalize recreational marijuana, large corporations and investment houses remained on the sidelines. Now Corona Beer parent Constellation Brands has jumped in to the cannabis sector making a $4 billion investment. Coca-Cola is “eyeing” the CBD sector and Molson Coors Brewing Co. has announced a partnership to develop a non-alcoholic cannabis infused beverage for the Canadian market. Soft drink sales in the U.S. total $112 billion annually and alcohol beverage sales in the U.S. total $223 billion.
With such household brand names in an industry producing over $330 billion in sales annually now taking interest in cannabis infused beverages, Puration finds itself in an enviable position having not only already developed and produced a cannabis infused beverage, but also having earned over a year’s worth of hard knocks experience marketing and distributing its cannabis infused beverages. Puration’s cannabis infused beverages are on shelves in sports nutrition retailers, liquor stores and dispensaries. The company’s experience has of late attracted the attention of some beverage industry heavyweights and with reaching the $1 million in annual sales benchmark now on a not too distant horizon, that interest could potentially grow into a more committed relationship. Look for an upcoming interview of Puration CEO Brian Shibley to be published next week to learn more about the recent interest in Puration’s cannabis infused beverage experience.
Puration’s 600% Cannabis Infused Beverage Sales Growth Experience
Puration debuted its EVERx CBD Sports Water early last year at Arnold Schwarzenegger’s Arnold Sports Festival. EVERx has since become the leading CBD infused beverage in the sports nutrition marketplace. The company reported 600% sales growth in the second quarter of this year and recently announced a $1 million annual revenue benchmark being potentially within reach for 2018. The company has its first THC infused beverage, THCSavor, under development and has recently announced a letter of intent to acquire a company with a third cannabis sector beverage. The acquisition is anticipated to be completed later this month.
Puration’s History From Cannabis Extraction Patent To Beverage Producer
Puration entered the cannabis sector when it acquired the rights to a patented cannabis extraction process from North American Cannabis Holdings, Inc. (USMJ). The entrepreneurial business plan has evolved since the acquisition with the company now concentrating its cannabis sector expertise and experience exclusively on the production of cannabis infused beverages. Today, the company maintains its patented cannabis extraction license as part of its strategy to produce differentiated cannabis infused beverages.
Puration’s Cannabis Cultivation Spinoff
To streamline and concentrate all its resources on the production of cannabis infused beverages, Puration has recently spun-off its cannabis cultivation operation. The spinoff was affected through the execution of a securities exchange agreement with Nouveau Life Pharmaceuticals, Inc., (NOUV) (“NOUV”). Puration sold its cannabis cultivation business in exchange for a convertible purchase note issued by NOUV. Puration and NOUV have agreed to a recapitalization plan for NOUV and a post recapitalization conversion of the purchase note into a number of common NOUV shares sufficient to issue one NOUV common share for every five shares of Puration common shares issued and outstanding. All of the NOUV common shares issued in conversion of the purchase note are slated for distributed to Puration shareholders in a dividend distribution. Look for a presentation coming soon from NOUV on its business plans for the cannabis cultivation business.
Puration’s Pending Stock Dividend Distribution
Now that the securities exchange agreement between NOUV and Puration is finalized, NOUV is working to rapidly come current with its financial reports. Once NOUV is current, the company will initiate a recapitalization. Following the recapitalization, the purchase note will be converted into NOUV common shares and Puration will initiate the necessary steps to issue the converted NOUV shares to Puration shareholders through a dividend distribution. The first steps leading to the stock dividend distribution are underway, and the combined management teams are committed to a prompt delivery of the planed stock dividend.
EVERx CBD Infused Sports Drink
Puration launched the EVERx CBD Infused Sports Waters in the spring of 2017. EVERx has since become the leading CBD infused beverage in the sports nutrition market place. The company’s sales grew 600% in the first year after the launch of EVERx. Kiwi Strawberry and Lemon Lime flavors are now available in addition the Original EVERx CBD Infused Sports Water. EVERx has more than twice the CBD of most CBD infused waters on the market. A proprietary technology enables EVERx to suspend more CBD than its competitors and still have a crystal-clear appearance and a refreshing taste. The company has recently initiated a package redesign after extensive market testing of a new logo design. Consumer demand for CBD infused beverages is growing and Puration is likewise receiving inquiries from a broader array of retail outlets. The package redesign is the first step of a comprehensive marketing plan to dramatically increase EVERx sales over the next 24 months.
More Cannabis Beverages To Come
Building on Puration’s success with the introduction of it’s EVERx CBD Infused Sports Water, the company is reorganizing to concentrate its efforts on the cannabis beverage industry. The plan to concentrate on the cannabis beverage industry has been validated by global alcohol giant Constellation Brands’ (Corona Beer, among others) recent $4 billion investment in Canopy Growth. Puration has already launched an initiative to introduce a new THC infused beverage in Canada in conjunction with Canada’s nationwide legalization of recreational marijuana schedule to go into effect on October 17th. A formula for the beverage called THC Savor has already been developed and a distribution plan is already being built through Puration’s recent acquisition of a Canadian cannabis business earlier this year. Puration is implementing an acquisition campaign targeting other cannabis beverage operations as part of an overall strategy to accelerate an expansion of the company’s portfolio of cannabis beverage brands. The first cannabis beverage acquistion is well underway and could be completed before the end of 2018.
Puration’s entrance into the cannabis sector was founded on a patented cannabis extraction process. The company’s original business plan was to establish a reputation for delivering the highest quality cannabis extract available. Management expected and still expects that consumer demand will grow for a variety of cannabis extracts to be infused in a variety of food and beverages. Puration’s original mission was to brand the company as the leading provider of cannabis extract such that consumers looked for the Puration name on their hemp oil salad dressing from Kraft, and their CBD infused beverage from Coca-Cola, and their THC infused cookies from Nabisco. While management still believes such products are coming, they recognize now Puration’s original mission was ahead of its time. Accordingly, the company adapted its plan and launched into making its own cannabis infused food and beverage products. The updated business plan is to focus on the cannabis infused beverage industry. However, before revising the business plan, while still working to build the highest quality extraction process in the market place, Puration had initiated a project to expand its extraction process upstream into cannabis cultivation. Having the best extracts depends not only on the extraction process itself, but also on the quality of the cannabis being extracted. Puration has cultivation operations in the United States and Canada. As part of the Puration’s current focus on cannabis beverages, the company plans to spin-off its cannabis cultivation business. The spin-off of the cannabis cultivation operation is not a discarding of excess weight, but rather a divide and conquer strategy. Standalone beverage and cultivation operations will be better situated to rapidly expand within their separate segments. In addition to maintaining all their current shares in Puration, shareholders will receive shares in the cultivation spinoff. The spin off plan includes a dividend distribution of stock in the cultivation business to the shareholders of Puration.
Brian Shibley – CEO and Chairman
Brian Shibley is a well-known and successful real estate investor and developer. He originally became involved in Puration as a passive investor later taking over the Company’s senior management position to lead the Company through a transition into a new industry. Brian came to Puration as part of a broader investment strategy within the beverage industry. Puration was previously focused on reusable water bottles enable through a proprietary filter system. Brian was instrumental in two additional beverage industry launches – one in the distilled spirits industry and one in the health and wellness industry. After graduating from the University of Western Ontario, Canada, Brian moved to Providenciales, Turks and Caicos, where he designed and built homes, condominiums, hotels and casinos. After more than a decade in the Caribbean, Brian moved to Dallas Texas where he established his own real estate company in partnership with the renowned Tower Group to purchase land and correspondingly develop residential, commercial and hotel properties. For the last ten years, while continuing in the real estate business, Brian has also served as the CEO of a family owned underground utility company. Brian built the utility company into multimillion dollar operation that was recently sold in a private transaction. Brian has vast experience in building hotels and is often sought after by other developers to consult on complex hotel structures and developments. He has worked on projects throughout the Caribbean (most recently in Cuba), the Middle East and within the United States.
Steven Rash – Director
Steven Rash is the CEO and Chairman of North American Cannabis Holdings in addition to being a partner in the firm holding a majority interest in North American Cannanbis Holdings. Mr. Rash is a medical industry veteran with a lengthy list of career accomplishments and experiences. He has negotiated medical device licensing agreements and health care partner strategic alliances that combined have generated over $650 million in new revenues. Mr. Rash has also managed numerous drug trials and secured multiple FDA approvals. He has signed over 400 managed care contracts and made more than 200 Boardroom presentations at Fortune 500 companies. Mr. Rash served as President and CEO of American BioMed, Vice President of Blue Rhino Corporation and Division President of Maxum Health Corporation. He earlier held numerous Vice President positions at BOC Group, PLC. Mr. Rash has a BS in Business Administration from the University of Delaware and an MBA from Southern Illinois University. Mr. Rash is also a Veteran of the United States Army.
Ed Bollen – Director
Edward Bollen has served over 30 years with the U.S. government (USG) beginning with service in the U.S. Marine Corps. Following active duty, he worked with various military and law enforcement entities at the local, state and federal level (including the DEA). On behalf of the USG, he served as a “Contracting Officer Technical Representative ” (COTR) working with USG contractors to develop specialized equipment, projects or designs. Mr. Bollen worked in the U.S. intelligence community and the U.S. foreign service on the diplomatic front primarily in Africa and the Middle East.