DALLAS, April 17, 2018 /PRNewswire/ -- Puration, Inc. (PURA) today released an update on the company's cannabis cultivation business. The company acquired First Choice Nursery last year to establish a 25-greenhouse operation in the first step of a plan to grow the operation to 400 greenhouses. First Choice Nursery began booking its first sales in the first quarter of this year. Recently the company has been developing an acquisition opportunity in Canada to enter the market for recreational marijuana expected to be legalized this summer. Management anticipates closing the Canadian acquisition before the end of April. The presentation released by management today includes details on the company's progress with both First Choice Nursery and the acquisition in Canada. The presentation narrative is included in its entirety below.
A Brief History Of Puration And Highlights On Its Recent Grow Operation Evolution
Puration entered the cannabis sector in 2015 with a patented extraction process and plans to produce the best cannabis extract for infusion into beverages and edibles. Puration quickly found the market was not yet clamoring for extract. Major brand names like Nabisco and Kellogg's still aren't ready for a cannabis infused version of their products and the start-up beverage and edible companies have limited demand. So, management made the decision to apply its patented extraction process to its own cannabis infused consumer products. Early in 2017, Puration introduced EVERx, a CBD infused sports nutrition supplement line. Namely, the first product was the EVERx CBD Infused Sports Water. Later this week on Thursday, April 19th, the company will release a more detailed update on its progress with EVERx and details on new cannabis infused consumer products coming soon.
A major component of having the best cannabis extract is having the best cannabis plants from which to extract cannabinoids. Cannabis cultivation is a natural extension of Puration's long-term development. Being headquartered in Texas, it made sense to take advantage of new medical marijuana laws in Texas. Accordingly, Puration acquired an older conventional nursery operation, First Choice Nursery, and immediately began renovations. Puration is now utilizing the 25-greenhouse facility conventionally and anticipates growing to $1 million in annual sales from conventional nursery operations. First Choice Nursery started booking its first sales since the Puration acquisition in the first quarter of this year. Puration has an option on acquiring another 400 greenhouse pads. Puration is working to secure a medical marijuana cultivation license in Texas with future plans to migrate the conventional nursery operation into a cannabis cultivation operation.
Canadian Cannabis Cultivation Expansion
The Canadian Government has announced plans to legalize recreation marijuana nationally in the summer of 2018. Puration originally partnered with its sister company, North American Cannabis Holdings, Inc. (USMJ) to look for and acquire an operation in Canada that would accelerate market entry into Canada for both companies. North American Cannabis Holdings has recently engaged in discussions with a party interested in potentially acquiring control of North American Cannabis Holdings. In conjunction with North American Cannabis Holdings current discussions, Puration is advancing the opportunity in Canada on its own.
Puration management characterizes the ongoing development of the opportunity to acquire an operation in Canada as "advanced" and "nearing completion." The acquisition would bring exceptional cultivation talent and experience to Puration and put Puration in a good position to potentially secure a license to cultivate cannabis in Canada for the legal recreational marijuana market. Puration has identified a substantial and underserved sector within the recreational marijuana market both in Canada and within the states in the United States that have legalized recreational marijuana use. The company has secured conditional investment to back its plan to capitalize on this substantial and underserved sector. The first step in meeting investment conditions is to finalize the acquisition in Canada. Puration management anticipates finalizing the Canadian acquisition before the end of April. Stay tuned.
Written by Cara Wietstock Puration, Inc. (PURA) currently maintains a U.S. patented cannabis extraction process that is licensed from NCM Biotech. As an entity of NCM Biotech, Puration has access to R&D that could potentially introduce FDA-approved cannabis derived pharmaceutical products. That is, if the plant is ever federally legalized. Currently, Puration is specifically looking to create products that treat the symptoms of conditions like cancer and multiple neurological disorders.
To help Puration accomplish their lofty goals John N. Gaitanis, M.D., Director of Child Neurology at Tufts Medical Center/Floating Hospital for Children; Lloyd R. Saberski, M.D., Associate Professor of Anesthesiology and Chronic Pain Management, Yale University, and John McMichael, Ph.D., President and CEO Beech Tree Labs make up the NCM Biotech medical advisory team.
Recently, Puration issued a letter of intent (LOI) to purchase a Dallas, Texas nursery consisting of 25 greenhouses. The greenhouse currently only grows flowers used by local residential landscaping companies. This high powered nursery operation held contracts with companies large companies like Lowe’s and Home Depot. Just after issuing that letter, the publicly traded extraction company announced a $1.2 million sales contract. Combined with their patented processes, the greenhouse operation could potentially earn the company up to $100,000 per month. There’s just one catch.
Texas recently approved medical cannabis but have yet to approve any licenses for operation. Because of this, the cultivation would transition from the traditional nursery to a cannabis nursery. Then as the medical cannabis program grows the cultivation can expand. Eventually, Puration would develop their own proprietary hemp and cannabis cultivars in the greenhouse in hopes of enhancing the company’s already thriving cannabis extraction business.
The acquisition under LOI will close before August and could include expansion terms of up to 400 irrigated greenhouses. Their plan is to utilize the profits from 25 greenhouses to organically expand the cannabis cultivation into the full 400 greenhouse potential. With impending legalization, the Puration nursery could turn around a large profit for their shareholders.
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