Despite its micro-cap dimension, PAO Group, Inc. (USOTC: PAOG) continues to make vital strides to advance its patent-backed CBD nutraceutical portfolio. Last week, PAOG introduced that not less than three of its CBD Nutraceutical Products shall be launched internationally in This autumn of this yr. That brings a number of close to time period milestones and catalysts into view. Better nonetheless, it places PAOG in a aggressive place to capitalize on an rising CBD nutraceutical trade alternative valued at $5.2 billion in 2020, and projected to develop to $16.4 billion by 2027.
The higher information for PAOG is that its deliberate worldwide growth is anticipated to value lower than initially deliberate, which makes the transfer extra impactful with the worldwide markets anticipated to ship a good portion of the corporate’s complete CBD Nutraceutical revenues. Three merchandise are in play.
The first is CBD RELAX-RX, concentrating on the multi-billion greenback nervousness and despair market. The second nutraceutical is RespRX, a late-stage improvement venture anticipated to faucet into the large COPD market. And its third CBD-based therapeutic, being developed along with Puration, Inc. (USOTC: PURA) is EVERx CBD Sports Water, in search of to make the most of a considerable sports activities diet sector the place CBD infused merchandise are incomes larger shelf house.
To facilitate what is anticipated to be a busy again half of 2021, PAOG is working with Alkame Holdings, Inc. (OTC Pink: ALKM) as a co-developer and North American Cannabis Holdings, Inc. (OTC Pink: USMJ) as its logistics companion to distribute its CBD nutraceuticals into US and worldwide markets.
The US market alternative, by the way in which, is getting a lift from laws supposed to minimize restrictions on using CBD. In truth, not less than 12 states have decriminalized its possession totally.
2021 Milestones In View
PAO Group, Inc. is coming to market on the proper time, with its mission benefiting from much less restrictions within the sector. Newly enacted cannabis reforms ease rules and regulatory scrutiny, which have a right away impact on PAOG’s potential to get its merchandise to market sooner and with fewer logistical hurdles. Also, the loosening of rules is more likely to entice new analysis companions and potential buyers who have been beforehand hesitant to work within the sector attributable to present legal guidelines. These modifications ought to profit PAOG in additional methods than simply regulatory phrases; they may additionally pave the way in which for huge development all through the remainder of 2021.
In truth, PAOG’s growth is already effectively in progress. A partnership with Puration, Inc. will facilitate near-immediate development by maximizing its use of a Texas-based pharmaceutical-grade indoor hemp develop and CBD extraction facility. Other partnerships with Alkame Holdings, Inc. and North American Cannabis Holdings, Inc. additionally add advertising and marketing and distribution experience to its improvement and commercialization ambitions. Thus, PAOG has the workforce in place to get its merchandise to market. And for an organization its dimension, that’s a exceptional accomplishment.
Better nonetheless, with the cannabis-sector having fun with extra mainstream marketability, PAOG is healthier positioned than ever to capitalize on substantial alternatives.
Video Link: https://www.youtube.com/embed/mlG8HDv06uk
Benefiting from Loosening Cannabis-Related Restrictions
In April, the Texas House of Representatives handed a invoice that legalized the medical and leisure use of cannabis. That laws advantages PAOG tremendously, particularly with CBD-based therapies gaining in reputation over conventional and addictive pharmaceutical options. And, whereas President Joe Biden could solely be in favor of decriminalizing marijuana presently, Senate Majority Leader Chuck Schumer has known as for the federal government to maneuver ahead with full legalization efforts. Biden is anticipated to signal bi-partisan laws enacting the latter. For good causes.
According to a brand new Pew Research survey, 91% of individuals within the United States assume marijuana needs to be authorized for both medicinal or leisure use, with 60 % in favor of each. Though each can profit PAOG in numerous methods, the therapeutics facet of the equation is the prize for PAOG. And profitable markets are in play.
PAOG’s RespRx, as an illustration, a CBD remedy being developed to deal with Chronic Obstructive Pulmonary Disorder (COPD) targets a multi-billion greenback remedy alternative using proprietary extraction strategies. That asset got here by way of an settlement with Kali-Extracts, Inc. (OTC Pink: KALY) final yr. PAOG additionally bolstered its commercialization efforts by recruiting Veristat, a contract analysis group (CRO) devoted to the development of therapies and coverings by way of regulatory approval. That deal ought to speed up commercialization of RespRx.
2021 Could Be The Breakout Period
Indeed, PAOG generated appreciable product improvement momentum through the first half of 2021. The again half needs to be even higher. In truth, buyers may count on to see not less than one, maybe three, CBD-based merchandise available on the market. Accordingly, the inventory is responding effectively to its prospects, rising by roughly 228% since January.
Investors responded particularly effectively to PAOG detailing its plans to broaden its CBD-based nutraceuticals line towards different indications. As famous, PAOG is engaged on not less than two remedy candidates, each concentrating on huge and probably profitable markets. Combined, its two remedy candidates are in search of to earn a good share of a market valued at greater than $25 billion. Moreover, that market is anticipated to double within the subsequent ten years.
Keep in thoughts, too, that it’s CRO, Veristat, is retained to speed up approvals for its development-stage merchandise. That profit must be factored into the share worth, particularly because it validates PAOG’s pipeline. In truth, an replace from PAOG reiterated that Veristat has already made appreciable progress in validating and supplementing the underlying analysis for RespRx. This is definitely excellent news within the close to time period, and extra updates alluding to commercialization may ignite investor curiosity.
A rally in April fell in need of breaking resistance on the $0.01 stage. However, anticipated milestones on the event and commercialization progress may translate into 2021 catalysts. And catalysts drive worth.
Research Funding Powers New Opportunities
Notably, PAOG shouldn’t be slowing its ambitions. In April, they introduced plans to finish a deal that would supply extra analysis funds and a 25% stake in a cannabis extraction patent. They additionally introduced being in last talks to conduct a joint analysis research involving CBD In Vivo Histological Research, which is able to assist to hurry up the approval course of for RespRx. Additionally, PAOG will profit from its 25% stake within the underlying patented cannabis extraction know-how, from which the RespRx formulation is derived. Better nonetheless, PAOG famous that it may safe the best to purchase the patent outright in the long run, which opens up a wide range of new income streams. Patented property clearly add firepower.
The good news is that PAOG’s stake within the underlying cannabis extraction technique may generate huge long run income streams. Noting that product analysts have stated that the patented extraction course of yields an extract that may be very shut in type to that of GW Pharma (NASDAQ: GWPH), licensing and partnership alternatives may come within the lots. That would translate to PAOG probably monetizing the asset by way of licensing agreements with out ever taking their very own product to market. Those can be cash-cow agreements.
And don’t underestimate PAOG’s understanding of that asset. They have famous that possession of the know-how would add long-term, extremely profitable income streams. In truth, if Jazz Pharmaceuticals (NASDAQ: JAZZ) buy of purchased GW Pharma for $7.2 billion earlier in 2021 is any indication, holding possession to an efficient extraction course of may ship exponential rewards. .
A Lucrative Opportunity In A Substantial Market
Indeed, PAOG is well-positioned for close to and long-term development. And they maintained that place regardless of the pandemic disrupting nearly each trade world wide. In truth, whereas different firms slowed, PAOG truly added worth by partaking Veristat, buying new property, and strengthening its improvement workforce by working with PRCCI in Puerto Rico to hurry up its analysis and improvement processes.
Better but, having two therapeutics within the works, complimented by an growth of its analysis initiatives, PAOG could also be in its greatest form ever to extend shareholder worth within the coming weeks and months. The intrinsic worth from its therapeutics alone is already extra useful than the corporate’s present share worth, particularly from its inherent worth to focus on a quickly rising, billion-dollar market.
In complete, PAO Group has delivered a compelling funding proposition. Taking under consideration a number of partnerships, engagement with a CRO, possession curiosity in a compelling CBD extraction course of, and close to time period commercialization for 3 merchandise, PAOG presents large inherent worth at a reduction.
The better part is that buyers may make the most of low share costs and maximize returns from what is anticipated to be a busy again half of 2021. And if its aggressive improvement and commercialization methods stay on schedule, the returns could possibly be exponential.
Disclaimers: Hawk Point Media is liable for the manufacturing and distribution of this content material. Hawk Point Media shouldn’t be operated by a licensed dealer, a vendor, or a registered funding adviser. It needs to be expressly understood that not at all does any data revealed herein characterize a advice to purchase or promote a safety. Our experiences/releases are a industrial commercial and are for common data functions ONLY. We are engaged within the enterprise of promoting and promoting firms for financial compensation. Never spend money on any inventory featured on our web site or emails except you may afford to lose your total funding. The data made out there by Hawk Point Media shouldn’t be supposed to be, nor does it represent, funding recommendation or suggestions. The contributors could purchase and promote securities earlier than and after any explicit article, report and publication. In no occasion shall Hawk Point Media be liable to any member, visitor or third get together for any damages of any variety arising out of using any content material or different materials revealed or made out there by Hawk Point Media, together with, with out limitation, any funding losses, misplaced earnings, misplaced alternative, particular, incidental, oblique, consequential or punitive damages. Past efficiency is a poor indicator of future efficiency. The data on this video, article, and in its associated newsletters, shouldn’t be supposed to be, nor does it represent, funding recommendation or suggestions. Hawk Point Media strongly urges you conduct an entire and unbiased investigation of the respective firms and consideration of all pertinent dangers. Readers are suggested to overview SEC periodic experiences: Forms 10-Q, 10K, Form 8-Ok, insider experiences, Forms 3, 4, 5 Schedule 13D. For some content material, Hawk Point Media, its authors, contributors, or its brokers, could also be compensated for making ready analysis, video graphics, and editorial content material. As a part of that content material, readers, subscribers, and web site viewers, are anticipated to learn the complete disclaimers and monetary disclosures assertion that may be discovered by clicking HERE.
The Private Securities Litigation Reform Act of 1995 supplies buyers a protected harbor in regard to forward-looking statements. Any statements that specific or contain discussions with respect to predictions, expectations, beliefs, plans, projections, targets, objectives, assumptions or future occasions or efficiency usually are not statements of historic truth could also be ahead wanting statements. Forward wanting statements are based mostly on expectations, estimates, and projections on the time the statements are made that contain a lot of dangers and uncertainties which may trigger precise outcomes or occasions to vary materially from these presently anticipated. Forward wanting statements on this motion could also be recognized by way of use of phrases comparable to initiatives, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating sure actions & quote; could, may, or would possibly happen. Understand there isn’t any assure previous efficiency shall be indicative of future outcomes.Investing in micro-cap and development securities is extremely speculative and carries an especially excessive diploma of threat. It is feasible that an buyers funding could also be misplaced or impaired as a result of speculative nature of the businesses profiled.
Company Name: Hawk Point Media
Contact Person: KL Feigeles
City: Miami Beach
Country: United States