Puration, Inc. recently announced signing a letter of intent to acquire a line of CBD infused sexual wellness products. The worldwide sexual wellness market is expected to reach a value of $39 billion by 2024. Puration, Inc (PURA) anticipates closing the acquisition by the end of June, 2020. The sexual wellness acquisition marks Puration’s fourth acquisition just this year.
“There are many cannabinoid receptors in sexual tissue as well as the reproductive organs,” says Pamela Peeke, MD, assistant professor of medicine at the University of Maryland in Baltimore and Equinox Health Advisory Board member. “CBD increases blood flow to those areas, which heightens sensitivity and triggers the body’s natural lubrication.”
Currently, Puration’s revenue is primarily generated by the sale of its EVERx CBD Sports Water. Last year, Puration reported $2.7 million in annual sales. In just the first quarter of 2020, the company earned $800,000 in revenue.
Puration Grows its Cannabis Beverage and Edibles Offerings and More
In January of this year, Puration began an acquisition campaign to acquire CBD infused edibles, beverage, and topical businesses. The acquisition campaign is Puration’s long-term growth strategy; however, the COVID-19 pandemic has kept the company’s management focused on simply sustaining growth through its EVERx sales. Among the beverages that Puration plans to launch into the Canadian market is THC Savor. The company also has CBD-infused TranquiliTea in the works.
In January, Puration also acquired Kaly’s line of Hemp4mula CBD Confections. These are fruit-flavored CBD-infused gummies and gums produced and sold in the US. Puration has been using Kaly’s patented extraction process to create cannabis extracts to be infused into its edibles and beverages. Puration has also expanded its cannabis beverage production in Europe, Africa, and Latin America.
In February, Puration also acquired the CBD Infused Pet Products online sales portal. The acquisition is in exchange for a perpetual royalty payment to the seller. Puration has also made a commitment to fund the initial marketing of the CBD Infused Pet Product Line. Finally, in early June, Puration initiated the acquisition of a CBD-infused line of sun care products.
Puration targets for the acquisition of CBD products that can be enhanced by the company’s patented technology. Puration owns a license to a patented, U.S. cannabis extraction process that is substantiated by extensive university medical research. That license, issued by NCM Biotech, is exclusively for cannabis extractions to be used in beverages, edibles, and cosmetics. NCM Biotech’s work is focused on medical research and as part of the license, Puration has access to that research. This benefits the development of quality, cannabis-derived products.
PURA Continues Growth in the Face of COVID-19
PURA’s acquisition campaign, which began in January 2020, continues unhindered. In fact, the company’s growth may have been enhanced by the impact the COVID-19 shutdowns have had on global economic conditions.
Puration’s management continually monitors the possible impact of the Coronavirus crisis to PURA’s operations. So far, the company’s outlook remains sustainable.
Forbes reports that vertically integrated CBD and hemp companies with under $6 million in the capital may not survive the economic downturn resulting from the COVID-19 economic shutdowns. The challenges of these “unprecedented times” creates a rich acquisition market for companies such as Puration, Inc. The company’s horizontal strategy to expand its offerings from beverages, to edibles and topicals gives Puration a broad footprint as well as long-term stability. This diversification will help the company maintain sustainability as well as fuel PURA’s rapid growth.
Puration Inc is developing PURA as a single brand name and unified marketing strategy that encompasses all of the product niches it already has, as well as any new niches PURA may enter with new acquisitions.