Will Kraft Foods General Mills and Nestle Lead The Legal Cannabis Sector?
Austin, TX – August 4, 2016 - As the DEA’s impending decision on rescheduling marijuana continues to make headlines foretelling what would be a major milestone in the nationwide march toward legalization, the hippie, stoner image still comes to mind when thinking about the typical marijuana consumer. The rescheduling of marijuana will likely result in the rapid increase in the share price of several entrepreneurial cannabis sector stocks. In the long run, major brand name food and beverage companies stand to benefit the most from cannabis legalization.
Cheech and Chong and the Grateful Dead are no longer the epitome of the cannabis consumer. The mini-van driving, Lululemon wearing mother of three under ten next door without a moment to spare is more likely to be the image of today’s cannabis consumer than an ungroomed, bandana wearing guy that doesn’t live in your neighborhood and seems to have nothing but time on his hands. And she shops at Central Market, Publix and Kroger where the shelves are filled with products from Kraft Foods, General Mills and Nestle.
She might enjoy an effervescent beverage with a little THC or perhaps a cookie or some ice cream with a little something extra. Is she going to park the mini-van in front of a dispensary and tell the nine-year-old to watch his siblings or is she taking the crew into Kroger’s and throwing something for herself in the basket?
It’s not just for fun, It’s for the health of your kids too. Of course THC is not appropriate for everyone, particularly children, but cannabis has other qualities separate from THC. CBD is a neural protectant and has proven to be effective in countering everyday anxiety to post traumatic stress. CBD shows promise in countering autism, Aylmer’s and MS among other neurological conditions. Hemp is rich in omega 3 fatty acids that most Americans lack in their diets. The non-THC health benefits naturally occurring in cannabis will likely make “fortified with vitamins” and “rich source of calcium” seem like child’s play.
But where will all the concentrate extracted from cannabis to be infused in cookies, cereal and beverages come from? A micro-cap publicly traded start-up called Puration, Inc. (PURA) has implemented a big-vision business plan to become the brand name standard when it comes to cannabis extracts to be infused in name brand food and beverage companies.
Puration has spent the last year refining its extraction process and recently announced lab certified results for the high purity of their extracted product. While not yet attracting the attention of Kraft Foods, General Mills or Nestle, Puration just announced entering into its first food and beverage collaboration agreement with Colorado based Spanish Peaks ScumpDelicacies to produce and co-market THC and CBD infused beverages. The agreement is the first of three anticipated agreements with food and beverage companies to be announced in the coming weeks by Puration – each anticipated to generate $1 million is annual sales.
The antics portrayed in Martin Scorsese’s Wolf of Wall Street might come to mind when considering the micro-cap or penny stock market where Puration is listed. However, one entire category of cast members was all but excluded from the movie – the entrepreneurial companies that get funded through micro-cap investments. One scene in the movie showed a sign above a garage. Other than that one scene, the thousands of entrepreneurial companies funded by micro-cap investments were left on the cutting room floor in favor of stock broker party scenes. Puration is an entrepreneurial start-up that would have hit the cutting room floor.
With online stock brokerage dominating trading today, the opportunity for Wolf of Wall Street brokers to fund Wolf of Wall Street parties on 50% commissions is substantially diminished. Nevertheless, micro-cap public investing is not today without its challenges.
The first challenge for investors is to separate the inherent micro-cap market hype from the real opportunity. The second challenge is to know that statistically, the odds are against any small business succeeding long-term and to invest accordingly – take profits when the company achieves successes – don’t wait for the company to become a Fortune 500 because it probably won’t.
Puration seems to have a good plan and to be achieving its first successes. The long-term plan to become the brand name standard for cannabis extract to be infused in major food and beverage companies is a praise worthy objective, but not without a lot of hurdles along the way. Expect several success stories over coming months and even coming years from Puration and maintain prudent, hopeful skepticism about their long-term success while rooting them anyway on to become the first Fortune 500 cannabis company.
To learn more about Puration: www.purationinc.com
Follow Puration on Twitter: https://twitter.com/Puration710
Visit Puration on Facebook: https://www.facebook.com/puration/
Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
SOURCE: Wolf Wrangler