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DALLAS, Aug. 22, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE - Puration, Inc. (USOTC: PURA) (“PURA”) today published a management update in conjunction with the recently published 2019 Q2 Financial Report. The company reported over $1 million in revenue for the first six months of 2019. The 2019 revenue for the first six months of 2019 is 87% higher than the revenue reported for the same period in 2018. The company also posted $122,000 in net income from operations for the first six months of 2019.
CEO Brian Shibley Update:
PURA has announced a $4 million revenue target for 2019. The company broke $1 million in sales for the 2018 fiscal year. I believe the Q2 2019 report demonstrates that the company can reach its $4 million revenue target.
I actually believe sales could have been even higher in the first six months of 2019. We had reached production capacity on our EVERx CBD Sports Water and spent considerable time and effort in the first half of the year overcoming our production constraints. Had we not been constrained, I believe we would have realized more sales in the first two quarters. We simply could not make enough EVERx to satisfy demand. Now the constraints are off and I expect we will see substantial EVERx sales growth in the second half of 2019.
We did get our production capacity under wraps in time to realize the first phase of an order for a private labeled CBD infused water. That gave us a nice boost in sales. However, it also came with an added expense. Both the expense of expanding our production capacity and setting up production for a private labeled product took a toll on our margins. However, that added expense is not recurring and we anticipate improved margins in the following two quarters of this year.
In addition to our revenue growth and the outlook for continued revenue growth and improving margins, PURA also took a big step forward recently on the issuance of the Nouveau, Inc. (NOUV) stock dividend intended for distribution to PURA shareholders. PURA spun-off its cannabis cultivation operation last year to NOUV in a deal that includes a planned distribution of NOUV stock to PURA shareholders. The orchestration of such a dividend issuance is not trivial. It takes some time to get it executed. You will notice on the most recent financial report that NOUV has recently issued preferred stock to PURA. We will in turn distribute the NOUV stock soon to PURA shareholders in a dividend distribution.
From the 2019 Q2 Report:
“Following the end of the third quarter, on October 04, 2018, the Company announced a spinoff of its cannabis cultivation businesses, known as First Choice Nursery and Canadian Cannabis Farmers CO-OP, in a sale of the assets to Nouveau Life Pharmaceuticals, Inc., which is independently traded on the OTC under the ticker symbol NOUV. NOUV was to issue a $1.2 million convertible note to the Company in exchange for the cannabis cultivation businesses. In July of 2019, NOUV issued the Company 120 million convertible preferred shares valued at $0.01 in lieu of the $1.2 million convertible note.”
In addition to the operational and dividend updates covered herein, separately, later today, PURA will make an exciting announcement about the expansion of PURA’s sales and marketing of EVERx CBD Sports Water in Europe. Stay tuned.
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.