PAO Group Inc (PAOG)

[sam1933]

New Price Target for PAOG .015

PAO GROUP, INC.
Introducing Price Target for Emerging CBD Pharma
https://www.goldmanresearch.com/202009081286/Opportunity-Research/paog-new-price-target.html

COMPANY SNAPSHOT

PAO Group, Inc. is an emerging cannabis and CBD company targeting growth via two tracks. The Company is in the early stages of developing a cannabis extract-based therapy to treat various respiratory diseases and illnesses including COPD and COVID-19. PAOG also owns a growing cannabis cultivation operation focused on hemp cultivation.

INVESTMENT HIGHLIGHTS

Conclusion: PAO Group currently trades above its 50-day and 200 day moving averages. This bullish status, along with its recently updated financials reporting, should prompt the shares to reach new levels. Moreover, a review of the financials lends us greater confidence in the Company’s R&D financing capabilities and the achievement of key milestones. Thus, we have now introduced a 12-month target of $0.015, a nearly 5x return from current levels.

Future Developments: This emerging CBD Pharma company is set to evolve from a promising preclinical firm toward a Phase I development path entity. PAOG has multiple shots on goal as it seeks to treat two major respiratory diseases that each represent billions in potential market sizes.

Next steps include engaging a CRO to initiate the process for potential FDA approval of RespRx, its COPD treatment, representing an estimated $14.1B market by 2025. Plus, PAOG is preparing to commence a similar development pathway for COVID-19 via a CTAP (Coronavirus Treatment Acceleration Program) application. We expect this application to be fast-tracked, given that the use of CBDs to treat these diseases is novel and based on a natural (and likely safer) product.

Price Target/ Higher Valuation: By running concurrent development programs resulting in two IND filings within the next year, we believe that such events could support a $20M valuation, or a $0.015 price target. This targeted valuation is in line with IND-filling stocks. Moreover, with no long term debt on the books, PAOG has significant funding flexibility to continue on its R&D paths.