Puration Inc (OTCMKTS:PURA) is a penny stock that has grabbed hold of the attention of traders during the stock’s recent bounce. The primary proximal catalyst underlying recent upside was the company’s announcement that American Cannabis Innovations Conglomerated has entered into a Letter of Intent to acquire the controlling interest in both North American Cannabis Holdings, Inc. (USMJ) and Puration, Inc. (PURA).
That suggests demand for shares of PURA, which in turn, has resulted in traders sniffing around at the stock once again, as one might imagine. We’ve witnessed 6% added to share values of the stock over the past week of action, but that move comes in the context of a larger bearish trend. However, PURA is a stock who’s past is littered with sudden rips. What’s more, the listing has benefitted from a jump in recent trading volume to the tune of 22% above its longer run average levels.
Puration Inc (OTCMKTS:PURA) bills itself as a company that has been a water purification company. PURA is involved in the design, development, engineering, production, marketing, and distribution of personal and group systems that filter, purify, clean, extract or otherwise improve the quality of water on a cost effective, affordable basis, with a minimum of environmental impact. Resulting from their own design and engineering, the company’s water purification systems include personal water filter bottles, collapsible water pouches, replacement filters, and travel filters.
PURA currently carries a inventory of personal water filter bottles and collapsible water pouches, and that inventory is available for sale at select retail locations.
The Company has, as mentioned, begun to explore and develop new business opportunities focusing on the emerging Cannabis Extractions Sector.
In July 2015, Puration Inc entered into an agreement to acquire certain health & wellness joint ventures from North American Cannabis Holdings, Inc. Puration Inc. sells its legacy products under the Filter 2GO brand. The company was founded in 2011 and is headquartered in Dallas, Texas.
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As noted above, the company was the focus of investment interest coming from American Cannabis Innovations Conglomerated, or ACI. In our experience, such movement denotes potential increased value of an underlying security. But nothing is guaranteed. Just because someone takes a stake hardly means they are correct in doing so, or that their terms are the same as the terms you might get on the open market for shares of PURA.
That said, we have viewed PURA as a potentially interesting play given some of their unconventional strategies. Diversification within the cannabis-related space is actually quite difficult to come by. Crossing with the water segment is an interesting way to arrive at that goal.
According to the recent release, “ACI is a private equity backed rollup founded to combine a variety of leading young cannabis companies with complimentary offerings and synergistic operations. USMJ and PURA are the first of five acquisitions in the cannabis sector ACI plans to announce within the next 30 days. ACI is seeking to acquire early stage, undervalued businesses with intellectual properties validated by market tests, if not initial commercial or consumer sales. ACI expects to improve the operating efficiency of acquired assets by streaming redundant functions and leveraging complimentary functions. ACI expects the potential for market capitalizations of acquired companies to improve by transitioning the acquired companies toward better investment structures, with better terms, that are altogether better suited to their current and more mature stage of development. Existing USMJ and PURA management are expected to be included in the ACI management team. ACI, USMJ and PURA plan to finalize the acquisition of USMJ and PURA into ACI by the end of May. “
“The opportunity for USMJ with ACI is huge,” said Steven Rash, CEO of North American Cannabis Holdings. “ACI brings the type of quality backing that can rapidly accelerate USMJ’s growth.”
“Puration has had tremendous success with its recent EVERx launch and is ready to launch a dozen additional products under the EVERx brand,” said Brian Shibley, CEO of Puration. “ACI is the answer to the product production costs required to launch the additional products. Watch out, here we come.”
At this time, carrying a capital value in the market of $1.65M, PURA has virtually no cash on the books, which must be weighed relative to about $754k in total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $PURA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!