DALLAS, May 19, 2020 /PRNewswire/ -- Puration, Inc. (USOTC: PURA) today published a management update to highlight further details regarding the company's 2019 annual financial report published last week. The company realized 121% annual revenue growth reporting over $2.7 million for the year ended December 31, 2019 compared to $1.2 million for the year ended December 31, 2018. In addition to achieving continued high revenue growth, the company reported over $200,0000 in net profit. The management update including a 2020 outlook and the latest on the company's acquisition campaign and organic beverage developments, can be found in its entirety below.
Management 2019 Annual Report Update And 2020 Outlook
PURA has maintained high revenue growth since 2017 when it took its first pre-orders for EVERx CBD Sports Water. PURA's entry into the sports nutrition market with EVERx has been a hit and it has established a strong financial foundation for PURA enabling the company to explore and experiment with the formulation and market opportunity for additional beverages. No new PURA beverage has yet had the success of EVERx, but EVERx continues to keep the company on stable footing and on a high revenue trajectory. Even through the economic impacts of the Coronavirus, EVERx continues to keep PURA on stable footing. While acting and planning cautiously in the current environment, management still has confidence that EVERx can maintain its stable footing while also continuing to produce high revenue results through 2020.
To date, EVERx CBD Sports Water is PURA's core business producing financial results. Accordingly, management's first priority will be to continuously enhance and further develop the EVERx business. PURA has been through multiple EVERx formula enhancements and will continue to update the formula in addition to exploring new flavors. PURA has also been through multiple production updates and packaging redesigns and will continue improve production and packaging. PURA has made substantial strides in developing its distribution network most notably expanding its distribution network to Europe, Africa and South America. PURA will continue to improve upon its distribution network.
The company has organically developed a number of additional cannabis beverages and will continue to move the full market launch of new beverages developed organically forwarded. Management sees particular promise in its THCSavor and TranquiliTea CBD beverages.
In January of this year, 2020, PURA launched a campaign to acquire CBD beverage, edible and topical businesses to include CBD businesses that targeted pet products. The campaign was intended to target a robust market of creative and promising young companies starved for investment in the waning 2019 cannabis capital market. PURA has acquired a CBD confections company and a CBD pet products company so far this year. The company recently announced a letter of intent to acquire a CBD infused Sun Care business.
In February, PURA secured a $5 million investment to fund its acquisition campaign. 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 strategy is to 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.
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.
PURA management is currently basing its revenue outlook solely on its EVERx product at this time in light of the economic uncertainty resulting from the impact of the Coronavirus. The potential revenue benefit of acquired assets and the potential revenue benefit of organically developed beverages will be treated as a bonus to the EVERx baseline.
The company plans to aggressively continue to pursue its acquisition campaign but cautiously monitor the prevailing economic situation in light of the Coronavirus and correspondingly execute on the advancement of acquired assets in step with what the prevailing economic scenario can confidently bear. If necessary, the advancement of acquired assets can wait a little longer until the overall economy is better suited to support the market launch of rebranded products.
Similarly, PURA management will continue to regulate the ongoing development of its organic beverage products based on its measurement of what it believes the prevailing economic environment can support.
Even with a preponderance of caution, and the possible delay in advancing acquired product rebranding and organic product development, PURA management has confidence the company will continue to grow year over year expanding its revenue at a rate of 100% or better. Furthermore, management anticipates a gross margin improvement in 2020 as the expense of production updates made last year included upfront costs that are not recurring.
Management remains optimistic that economic conditions will improve and offer PURA the opportunity to advance new and acquired product development. The priority will be to concentrate resources first on its EVERx CBD Sports Water, second on building asset value through acquisition and third on converting asset value into revenue growth.
For more information on Puration, visit http://www.purationinc.com
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
SOURCE Puration, Inc.