Puration 2018 Sales Exceed $1 Million Goal With 2019 Goal Set At $5 Million and NOUV Dividend Coming Sooner Than Planned
Dallas, Texas – December 20, 2018 – Puration, Inc. (USOTC: PURA) (“PURA”) today released an online shareholder update that includes details on the company’s progress toward 2018 sales goals and an outlook on 2019 sales. The update also includes new information on previously announced plans to issue a dividend of Nouveau Life Pharmaceuticals, (USOTC: NOUV) (“NOUV”) stock to PURA shareholders that will speed up the issuance in addition to, management believes, improving the overall value of the dividend. Management also includes in the update highlights of business developments with US Cannabis Health partners NOUV and Kali-Extracts (USOTC: KALY). The narrative of the update can be found below in addition to finding the full update on the company’s website at www.purationinc.com.
2018 $1 Million Sales Goal
Driven primarily by the growing market penetration of our first cannabis sector beverage, EVERx CBD Sports Water, PURA has well exceeded its $1 million 2018 sales goal. In addition to throughput increasing within existing channels, EVERx is now enjoying regional expansion. PURA has recently announced new distributors in new areas around the U.S., and anticipates soon announcing its first international distribution agreements.
The recent addition of Telluride Happy Water to the PURA product line has also contributed to sales growth. PURA just announced a 100-pallet order that included a strategic marketing campaign in partnership with the Austin, Texas based distributor. We met this week to plan the marketing campaign and we are very excited to roll the program out starting in January.
The recent $1 million agreement with Generex Biotechnology, Corp. (OTCQB) to produce private label CBD infused water is a major contribution to 2019 sales. We reasonably believe we can anticipate our current channels to at least produce the same $1 million in sales in 2019 that came from those channels this year. Now add to that the Generex $1 million agreement and we are already on track to double sales in 2019. However, we except our existing channels to expand sales and we are on track with establishing new channels. So, we are optimistic that $3 million in sales next year is a reasonable goal and we’re even setting a stretch goal of $5 million in sales with the additional sales contributions anticipated from our other beverage lines to include Telluride Happy Water and THCSavor.
Upcoming Dividend Distribution
PURA recently spun-off its cannabis cultivation operation with facilities in the U.S. and Canada to NOUV. In conjunction with the spin-off, a portion of the consideration that PURA received from NOUV was slated to be converted into common stock and that NOUV common stock was to be issued to shareholders of PURA. Specifically, PURA sold its cannabis cultivation business to NOUV in exchange for a $1.2 million convertible note with a commitment that the note would promptly be converted to common shares of NOUV and that those converted shares would be distributed in a stock dividend to the shareholders of PURA. PURA and NOUV originally planned to wait for NOUV to execute a reverse spilt before executing the dividend distribution. While pursuing that objective, it became clear the execution of the reverse split would take some time. As NOUV updates its filings and executes on its business plan with the new cannabis cultivation operation, optimistically, a reverse split of NOUV might not be necessary. So, PURA and NOUV management have explored alternative options. In light of the fact that the common shares of NOUV issued to PURA shareholders will not be immediately free trading and will have to season to be free trading under an exemption from registration, PURA and NOUV have resolved to issue a dividend of preferred shares convertible into common shares. In this way, a dividend of equity can be rapidly issued and the seasoning of shares for exemption can begin. If a NOUV reverse proceeds as originally planned, then shareholders will receive the original allocation of 1 common share for every 5 shares of PURA. If a reverse proves unnecessary, then the conversion of preferred shares into common shares will be adjusted accordingly to affect an equal dividend allocation.
US Cannabis Health Joint Venture
The Joint Venture (JV) partnership with KALY and NOUV is proceeding even better than anticipated. KALY and NOUV today announced an agreement to expand NOUV’s current cultivation operations to include 100 adjacent acers dedicated to growing hemp under the new Farm Bill legalizing hemp farming and anticipated to be signed into law later today by President Trump. KALY will construct a CBD extraction facility on site based on KALY’s patented extraction process. In addition to the outdoor hemp cultivation, NOUV will build a state-of-the-art greenhouse operation intended for the development of a proprietary hemp cultivar.
Now that KALY’s filings are cleaned up with OTCMarkets and Frederick Ferri has taken the reins and CEO, the caliber of KALY’s assets and capabilities is becoming more clear to the market. KALY produces pharmaceutical grade cannabis extracts that have been involved in multiple clinical trials in addition to utilizing its patented cannabis extraction process in the production of CBD infused nutrition and wellness products to include its own Hemp4mula and CBD infused waters produced by PURA.
As PURA shareholders likely know, NOUV has a cannabis cultivation operation with facilities in the U.S. and Canada. NOUV’s objective in the partnership announced today with KALY 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 management anticipates to be exploding demand in 2019.
KALY, NOUV and PURA are partners in US Cannabis Health for the purpose of together developing partnerships with pharmaceutical companies to develop cannabis pharmaceuticals. US Cannabis Health recently announced its first agreement with Generex Biotechnology, Corp. (OTCQB: GNBT).
To learn more about Puration, Inc., visit www.purationinc.com
To learn more about Kali-Extracts, Inc., visit www.kali-extracts.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.