For investors, trading in biotech and drug development companies takes patience. The review processes can be slow, clinical trial data take time to evaluate, and even logistical problems this year have wreaked havoc on companies getting supplies. Still, while patience can be a virtue, the rewards can be lucrative. And if PAO Group (OTC Pink: PAOG) gets its way, it may be able to deliver substantial rewards to shareholders by the end of this year. Better still, those gains could come as early as this quarter.
Last month, PAOG reiterated its plan to launch its line of CBD Nutraceuticals by the end of this year. If they stay on track, they will target a massive industry that in 2020 was estimated to be a $5.2 billion market opportunity. Still, while it's big now, analysts predict the CBD nutraceuticals market will grow by more than 200% toward $16.4 billion by 2027. The news gets better for PAOG, with the company's programs targeting the right indications at the right time. And they are letting investors know of the promise ahead.
Its update in June highlighted the contributions of their partners Alkame Holdings, Inc. (ALKM) and North American Cannabis Holdings, Inc. (USMJ) toward a collaborative effort to develop innovative CBD-based therapeutics to capitalize on several treatment opportunities. In addition, PAOG provided additional detail about its planned stock distribution to PURA (OTC Pink: PURA) shareholders connected with PAOG's acquisition of PURA's cannabis cultivation operation. According to the update, final approvals continue to make their way through the FINRA processes. PAOG will provide further updates as the process winds toward its distribution date.
As that paperwork travels through the processes, the more excellent news is that on the operations front, PAOG is better positioned than ever to create substantial value during the remainder of 2021.
A $15B CBD Offers PAOG Substantial Opportunities
In particular, PAOG's June update provided details on its developments to bring its CBD-based nutraceutical products line to market. The better news is that PAOG reaffirmed that these therapeutics remain on track to be released commercially by the end of 2021 and target high-value indications.
The first CBD Nutraceutical under development is CBD RELAX-RX, targeting patient treatment in the multi-billion dollar anxiety and depression market. The great news there is that an increasing number of patient subsets continue to turn toward CBD-based treatments over pharmaceutical options to treat often debilitating conditions due to depression and anxiety.
Meeting that demand, PAOG intends to leverage its specially formulated CBD RELAX-RX to provide a best-in-class solution. Its extraction process adds credibility to that expectation. Some in the sector say that RELAX-RX uses an extract comparable to GW Pharma's, which was sold to Jazz Pharmaceuticals (NASDAQ: JAZZ) for roughly $7 billion last year.
Its other program, RespRx, targets CBD-based therapeutics to treat chronic obstructive pulmonary disease (COPD). Like the depression and anxiety treatment markets, this one also targets a multi-billion dollar opportunity. The good news for this program is that PAOG is leveraging data from studies conducted in 2015 suggesting that CBD could help open the bronchial passages, is well tolerated, and lacks the often severe side effects associated with current standards of care.
In fact, many believe that once an effective CBD-based alternative comes to market, it can earn a substantial market share. PAOG intends to win its share of that prize. Thus, the prize can come sooner rather than later in the race for a natural therapeutic CBD alternative. Best of all, there will be multiple winners.
By the way, its RespRX therapeutic is showing promise. The CBD-based treatment is derived from a patented process of extracting cannabidiol - "METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT" (US Patent No. 9,199,960) that produces an extract said to rival the quality of one of the industry's pioneers, GW Pharma. The better news is that PAOG could leverage value from that IP by monetizing the RespRX platform and extraction process through licensing agreements.
Best case, PAOG could generate potentially substantial revenues through third-party agreements. They could then use that money to fund additional product development, license them, and develop multiple cash-cow operations. However, while that could be an option, if either of its therapeutics emerges from the clinic showing substantial benefit, PAOG won't have too hard an issue finding investors to back full development and marketing of the product.
More to Like At PAOG
Although its CBD therapeutics program earns most of the attention these days, its EVERx CBD Sports Water, in collaboration with Puration, Inc., can also be a near-term value driver. The CBD-based water capitalizes on market trends that demonstrate increased interest in CBD and lesser carbonated beverage consumption. The water combines the best of both worlds- non-carbonated CBD. And to support that product, PAOG recently announced the development of a sugar-free version of EVERx CBD Sports Water, opening the market opportunity to a broad-based audience. PAOG expects to accelerate the development and distribution of both products this year.
Combining its CBD therapeutics programs with its EVERx CBD Sports water, the rest of 2021 can be promising to PAOG and lucrative to investors.
Looking Forward To 2H 2021
Indeed, heading into the back half of this year, both near and long-term catalysts are in focus. And that merits investment consideration no matter one's investment threshold. Still, with PAOG nearing some potentially company-changing news, making an investment consideration could be more beneficial before the company publishes news. After all, at less than a penny a share, investors can potentially gobble up stock by the millions, sending the PAOG share price substantially higher in the process.
Keep in mind, too, national news can help push the stock higher as well. Already, the loosening of regulations related to cannabis, hemp, and CBD is allowing PAOG to expand its operations into new sectors. Surprisingly, that value is not yet priced into PAOG stock. But it may soon be.
Moreover, more amenable approval processes will help PAOG and its partners get products to market quicker and potentially help them attract new collaborative opportunities from businesses previously wary of working in the sector.
Keep this in mind, too- PAOG isn't going it alone. PAOG hired Veristat, a premier contract research organization (CRO) that can accelerate program development and assist PAOG's products in earning regulatory approval more quickly. The engagement is a critical milestone reached that can have substantial positive implications and already validates its underlying research. Thus, if Veristat is willing to support and represent the programs, investors may be wise to do so as well.
Bottom line: On many fronts, PAOG is positioned for a breakout during the back half of this year. And as it nears the planned release of its CBD nutraceuticals, the share price could move considerably higher. And deservedly so if they stay on pace. Moreover, the value from its long-term development plan, including its CBD sports water, engagement with a CRO, partnerships, and potential licensing of assets, make the investment proposition more compelling than ever.
Thus, at current levels, adding PAOG to a risk-balanced portfolio may be a wise and timely decision.
Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Media strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Hawk Point Media was compensated up to five-thousand-dollars by a third-party to research, prepare, and syndicate written and visual content about Gourmet Provisions International Corp. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, Hawk Point Media, its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found by clicking HERE.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company Name: Hawk Point Media
Contact Person: KL Feigeles
Email: info@hawkpointmedia.com
Phone: 3057806988
City: Miami Beach
State: Florida
Country: United States
Website: https://www.hawkpointmedia.com
