DALLAS, Oct. 01, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Puration, Inc. (PURA) today released a presentation detailing its recently announced new distribution agreement for its EVERx CBD Sports Water in Europe anticipated to generate $4 million in annual revenue. The presentation has been prepared by the company’s CEO, Brian Shibley, and is available in its entirety below:
EVERx CBD Sports Water and The New European Marketing Campaign
Two weeks ago, PURA kicked off a European marketing campaign for its EVERx CBD Sports Water at Arnold Schwarzenegger’s Arnold Sports Festival Europe in Barcelona. EVERx was officially launched for the first time ever at the Arnold Classic in Columbus, Ohio in 2017. EVERx now participates at the Arnold Sports Festival events worldwide.
EVERx today is the leading CBD infused sports nutrition beverage with over $1 million in sales in 2018 and over $1 million in sales in the first six months of 2019 and targeting $4 million in sales by 2019-year end.
The $4 million anticipated from the new distribution agreement is separate from the current $4 million 2019 sales target.
If possible, the European cannabis legalization environment is more chaotic than in the United States.
Forbes reports: “In the European Union, the legal status of cannabis varies by country. Medical cannabis is legal in Germany, Czech Republic, Italy and Malta. The UK is also moving to legalize medical cannabis. The status of edibles in the EU is legally unclear.”
Nevertheless, the Brightfield Group predicts the EU market for CBD to reach $1.7 billion by 2023.
PURA has specialized in navigating the market dynamics associated with the early market adoption of cannabis products where rules and regulations are not clear and ever changing yet market demand has sent a clear message that consumers are ready for and looking for cannabis products. PURA’s business comes from a spin-off of a cannabis extraction business previously owned by North American Cannabis Holdings, Inc (USMJ) which was started in 2013, early on in the cannabis consumer market. PURA management has garnered a wealth of knowledge and experience anticipated to help the company navigate the rapidly growing opportunity in Europe.
In addition to the market experience PURA has gained from its early entry, PURA has also amassed substantial product experience. Not all CBD extracts are created equal and the infusion of CBD into a beverage or edible is not as easy as simply mixing CBD in a mixing bowl. PURA has experienced shelf-life problems, among other issues and in turn, resolved the problems. PURA’s hands on experience and U.S. market presence has made PURA a target of interest of more than one major beverage brand name.
PURA’s EVERx CBD Sports Water and new CBD beverages in the works which will be included in the new distribution agreement, benefit from PURA’s sole license of a U.S. Patented Cannabis Extraction Process for beverage infusion from Kali-Extracts, Inc. (KALY). USMJ originally entered into a contract with NCM Biotech, the company that originally owned the Patented Cannabis Extraction Process. USMJ spun the contract off to PURA and NCM Biotech was subsequently acquired by KALY.
New European Distributor
Truth be told, the new distribution agreement announced last week is not PURA’s first experience with the new distributor. PURA has previously shipped EVERx CBD Sports Water to this distributor and conducted test marketing. The new agreement was not as simple and easy as the announcement last week may have made it sound. The agreement has been in the works for about a year and a half. The success of EVERx CBD Sports Water’s presentation at the Arnold Sport Festival in Barcelona two weeks ago sealed the deal.
Over the last year and a half, and in conjunction with the test marketing, the distributor and PURA management have a good deal of confidence in the anticipated market opportunity for $4 million in sales annually. With the first shipment going out later this month, the $4 million annual projection can be validated and updated with Q4 sales.
Among other outlets, the distributor supplies a major multibillion-dollar grocery chain with a majority of sales in the UK and Spain.
Some shareholders have already inquired as to why PURA has not yet released the name of the distributor or the corresponding grocery chain. Candidly, PURA has released such information in the past early on related to new contract announcements and experienced consequential difficulties, some with unfortunate outcomes. The release of client and partner information almost always results in unsolicited calls to PURA’s new clients and partners. The calls very in nature, but are periodically considered an unwelcome burden by PURA’s new clients and partners. While the intention is not to keep the new client and partner a secret forever, which would probably not be possible anyway, PURA management would like to mature the partnership and client relationship a bit before causing an increased call volume for the new client and partner.
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.