Puration (PURA.OTC) will acquire a CBD sexual wellness product line, the company announced today in a press release.
Pura’s revenue comes mostly through the sales of its EVERx CBD Sports Water product. Last year they made $2.7 million in sales, and in January, the company started an aggressive M&A campaign targeting looking to get deeper into cannabis 2.0 businesses, including CBD infused beverages, edibles and topicals.
The campaign is part of Pura’s growth strategy, which has been spearheaded by sales of their EVERx product. Now Pura’s strategy has shifted to expansion across the CBD market, which the company believes will give them a greater reach and more stability with the overall goal being long term sustainability and growth.
Pura pulled in a $5 million investment to fund the acquisition, and secured it with a royalty agreement and a promise to fund their own marketing campaign for the line. The company will publish more details about the acquisition and intended expansion drive on Tuesday, June 30.
The company’s prior acquisitions include CBD confections company and a CBD pet products company.
According to Forbes, the vertically integrated hemp and CBD companies with a market cap under $6 million are at the most risk of failing under the economic conditions imposed by COVID-19. This makes for an acquisition market rich with possibilities.
The global sexual wellness market is anticipated to reach a $39 billion value by 2024.