Nouveau Life Pharmaceuticals Inc (NOUV)

[Wolverine19]

Multiple Shots on Goal in Multi-Billion Dollar Markets
January 08, 2019 - "Separately, management believes that based on feedback from those that were involved in the aforementioned study that the Kali-Extracts extracts may be superior to those of GW Pharmaceuticals (NASDAQ - GWPH - NR), the maker of Epidiolex. Plus, management proffered that as part of the development of its COPD therapies through its US Cannabis Health Partnership with Puration and Nouveau Pharma (OTC – NOUV – NR) the potential for Kali-Extracts to harness the patented RapidMist buccal cavity drug administration technology of Generex Biotechnology (OTC – GNBT – NR) would be a boon to all involved. Kali-Extracts’s joint venture agreement named US Cannabis Health with Puration and Nouveau was formed to combine their respective resources for the specific purpose of developing partnerships with major pharmaceutical companies to produce medical cannabis therapies.

Wellness

In the wellness arena, the early affirmation of its extract’s efficacy has occurred via sales of Puration Inc.’s CBD-infused beverage product which is based on Kali-Extracts’s IP. In fact, Puration could reach $1M in sales this year and $3M-$5M next year. Still, that is just the beginning. Various joint ventures and new product introductions in which Kali-Extracts has engaged are likely sources of near-term revenue for Kali-Extracts in the CBD-infused product market.

For example, as noted above, Puration and Kali-Extracts are part of a joint venture company called US Cannabis Health which was formed for the purpose of developing and marketing pharmaceutical applications and non-pharmaceutical wellness concentrates derived from Kali-Extracts’s patented extraction process. Puration, currently the sole licensee of the process will be producing the NuGenerex CBD HydroHealth High Alkaline Water. As part of this arrangement, Kali-Extracts will be developing custom CBD extracts for Puration to infuse into the NuGenerex CBD HydroHealth High Alkaline Water.

The Company is also producing its own products. Last month, Kali-Extracts announced it was launching its own line of hemp-derived CBD infused candies and vapes under the brand name HEMP4MULA. With an initial wholesale order pending Kali-Extracts’s completion of its first production run, the company expects to see HEMP4MULA CBD Gum on sale at retail later this month. Kali-Extracts’s Hemp4mula CBD Infused Chewing Gum will come in a blister back of 8 pieces with 10 mg each of hemp-derived CBD. Mints and gummies infused with CBD are expected to follow soon thereafter. HEMP4MULA vapes are also coming soon.
Kali-Extracts and Nouveau recently announced an agreement to expand NOUV’s current cultivation operations to include 100 adjacent acres dedicated to growing hemp under the new Farm Bill legalizing hemp farming just signed into law by President Trump. Kali-Extracts will construct a CBD extraction facility on site based on its proprietary and patented extraction process. In addition to the outdoor hemp cultivation, Nouveau will build a state-of-the-art greenhouse operation intended for the development of a proprietary hemp cultivar. Nouveau has a cannabis cultivation operation with facilities in the U.S. and Canada. The objective of the partnership is to develop a proprietary pharmaceutical grade hemp cultivar in addition to being a source of hemp supply for a myriad of industries in what both companies anticipate to be exploding demand in 2019.

KEY FIGURES

As noted above, the Company’s innovative extraction technology is already bearing fruit. It can be quantified in the success of the Puration beverages. Puration currently produces EVERx CBD Sports Water, the leading CBD infused water in the sports nutrition market. Puration has trailing twelve-month revenues of approximately $1 million. However, due to the aforementioned relationship with Generex, Puration received a $1M order at year-end related to the launch of NuGenerex CBD HydroHealth High Alkaline Water. It should be noted that $300,000 of the order is earmarked to Kali-Extracts as a CBD extraction contract. Clearly, the Puration relationship is a near term sales driver as its potential $3M - $5M in revenue for 2019 would certainly contribute to Kali-Extracts’ financials.

Separately, the Company was awarded a $100,000 wholesale order of its Hemp4mula CBD Infused Chewing Gum. The wholesale buyer plans to have Hemp4mula CBD Infused Chewing Gum available for sale at select retail drugstore locations and through the soon to be launched USMJ E-commerce Site from North American Cannabis Holdings, Inc. (OTC – USMJ – NR).

Finally, the Company and Nouveau anticipate up to $5 million in revenue from their hemp cultivation and extraction venture. On the heels of the hemp legalization, industry sources suggest that hemp farming could yield $50,000 per acre from the combination of CBD extraction and other uses of hemp. Thus, the 100-acre hemp cultivation operation could yield $5 million.
http://www.goldmanresearch.com/201901081229/Opportunity-Research/kaly-multiple-shots-in-cbd-industry.html