The two companies are in the process of orchestrating an immediate dividend of the preferred shares to the shareholders of PURA.
DALLAS, Sept. 27, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — Puration, Inc. (USOTC: PURA) (“PURA”) and Nouveau, Inc. (aka Nouveau Life Pharmaceuticals) (USOTC: NOUV) (“NOUV”) today issued a Cannabis Cultivation Business Update.
In October last year, PURA spun off its cannabis cultivation business to NOUV in exchange for a $1.2 million convertible note issued by NOUV to PURA. In July of 2019, the note was exchanged for 120 million preferred shares convertible into NOUV common stock.
The two companies are in the process of orchestrating an immediate dividend of the preferred shares to the shareholders of PURA. At the same time, and in conjunction with the dividend issuance, NOUV is working to bring all its reporting current simultaneously with the dividend issuance. PURA engaged an independent analyst to review the transaction and issue a fairness opinion.
Hemp Cultivation Operation Targeting $10 Million In 2020 Revenue – $1 Million 2019
The operation spun off to NOUV consisted of a long-term strategic farming operation with 25 operating greenhouses and an additional 400 greenhouse pads ready to be put into operation. As hemp and marijuana cultivation was not legal at the time, the 25 greenhouses were engaged in general nursery operations.
The strategic plan was to utilize the income from the general nursery operations to expand infrastructure for supporting a future cannabis cultivation operation. The operation is located in Texas where local laws have just recently adopted the Federal legalization of hemp cultivation. Accordingly, the transition to hemp cultivation is underway.
The current operations have approximately $300,000 in nursery product inventory and the capacity to generate approximately $1 million in annual revenue. In the first full year (2020) of hemp cultivation, NOUV projects generating approximately $10 million in revenue. The revenue is anticipated to be generated primary through the extraction of CBD from hemp. NOUV has entered into a cannabis extraction contract with Kali-Extracts. KALY owns and operates a U.S. Patented Cannabis Extraction Process.
Goldman Small Cap Research has published a recent analyst report on the NOUV business. The current industrial hemp market is estimated to be approximately $4 billion and growing to $13 billion by 2026.
Canadian Marijuana Operation
Separate from the U.S. hemp operations, NOUV has an operation in Canada developing a small licensed medical marijuana cultivation operation into a larger scale company supporting the
home marijuana grower.
PURA Research Analyst Report and Investment Recommendations
Earlier this week, PURA announced the all new and comprehensive Goldman Small Cap Research analyst report covering both the company’s CBD Beverage Business and the CBD Industry Itself including PURA investment recommendations.
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.