A Texas-based CBD extraction company is getting into the sunscreen business.
Puration, Inc. (OTC: PURA) said Thursday it acquired Kali-Extracts, Inc. (OTC: KALY), a CBD-infused sun care product business.
The extractor started off with the goal to be a leader in the hemp-derived CBD market and partner with multinational companies like Kraft Foods Inc. to sell hemp oil salad dressing, or CBD-infused beverages with Coca-Cola Co., the company’s website says.
The hemp firm also had planned to be an early mover in the Canadian cannabis 2.0 market.
— Puration (@Puration710) June 4, 2020
“While management still believes such products are coming, they recognize now Puration’s original mission was ahead of its time,” the company said.
To pivot the business, Pura is working to grow by acquiring CBD-related companies.
Thursday’s sun care product acquisition marks Pura’s third acquisition this year, adding to its CBD confections company and a CBD pet products company.
“The campaign is intended to target a robust market of creative and promising young companies starved for investment in the waning 2019 cannabis capital market,” Pura said in a press release.
The acquisition will also help the company break into the sun care market, which market and consumer research portal Statista estimates to be worth US$8.5 billion today, and worth over US$10 billion by 2024.
Pura’s flagship product, EVERx, is a CBD-infused sports drink with more than twice the cannabidoil in it than most other infused sports drinks, according to the company.
That sports drink was credited for bringing in most of the company’s US$805,000 revenue for the three months ended March 31. Year-over-year that revenue increased 173 per cent, and gross revenue in Q1 was US$241,790 Pura said in a May press release.
Pura is planning on building off of its infused beverage business to start cannabis cultivation. According to the company website, it already has cultivation operations in Canada and the U.S.
“The spin-off of the cannabis cultivation operation is not a discarding of excess weight, but rather a divide and conquer strategy. Standalone beverage and cultivation operations will be better situated to rapidly expand within their separate segments,” the website reads.
Company shares sell for around US$0.013, and have been on a gradual decline since Canada legalized cannabis in October 2018 when they spiked to US$0.15.
Top image via Pura