DALLAS: Puration, Inc. (USOTC: PURA) today announced executing the acquisition of a CBD infused sun care product business. The global market for sun care products is USD 8.5 billion and anticipated to reach over USD 10 billion by 2024.
This marks the third acquisition this year for PURA in a campaign to acquire CBD infused beverage, edible and topical businesses. The campaign is intended to target a robust market of creative and promising young companies starved for investment in the waning 2019 cannabis capital market. Prior to the acquisition today, PURA has acquired a CBD confections company and a CBD pet products company.
PURA reported $2.7 million in revenue in 2019 up 121% from 2018. Revenue is generated primarily from the sales of PURA's own EVERx CBD Sports Water. PURA anticipates 100% revenue growth in 2020 from ongoing sales of EVERx. Now PURA is expanding through acquisition.
PURA targets CBD product acquisitions that can be enhanced with PURA's patented technology. PURA owns a license to a U.S. Patented cannabis extraction process backed by extensive university medical research. The license, issued by NCM Biotech, is exclusive for beverages, edibles and cosmetics among other uses. NCM Biotech is focused on medical research and Puration has access to that research. See a recent research report on CBD extracts derived from NCM Biotech's patented extraction process Journal of Cannabis Research.
In February, PURA secured a $5 million investment to fund. The $5 million investment is structured as debt facility whereby funds can be drawn as needed to fund acquisitions. The drawn funds would be secured by the acquired asset and the debt can be repaid in stock at $0.10 per share. PURA management is actively pursuing additional investment to increase the potential of the current acquisition campaign.
PURA's acquisition priority is to concentrate on opportunities that can be purchased in exchange for a royalty agreement. Management's preference is to concentrate its investment funds on the rebranded sales and marketing of acquired assets and not the actual purchase of the asset itself. Management looks for CBD acquisition opportunities where the operations can be absorbed into PURA's existing production capacity; product formulations can be enhanced with PURA's patented technology, and the sellers' benefit is derived from the ultimate success of the asset. The CBD Sun Care acquisition announced today was purchase in exchange for an ongoing royalty issued to the seller.
For more information on Puration, visit http//www.purationinc.com
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