Puration Inc (OTCMKTS:PURA) and Nouveau Life Pharmaceuticals Inc (OTCMKTS:NOUV) Joint Venture Gains Traction

Growing market penetration and impressive sales numbers are the catalysts that affirm Puration Inc (OTCMKTS:PURA) 200% upside potential, as was the case in our previous update. While the stock has come down tumbling from record highs registered in October, all indication is that this is a minor correction.

PURA Price Analysis

The stock looks set to continue powering high as a pullback play. Supporting the upward momentum heading into 2019 is a string of positive developments led by solid sales numbers as well as an impressive 2019 outlook. Puration has also embarked on an expansion drive as it looks to strengthen its footprint and market share in the multi-billion sector.

After plunging from record highs of $0.25 a share, the stock appears to have hit a strong support level at the $0.08 level. A string of positive developments in the recent past supports a bounce back to 52-week highs, from the support level.

PURA Daily Chart

Following the pullback, the stock faces an immediate resistance level at the $0.13 level. A breach of the resistance level should open the door for bulls who missed out,on the initial rally to come in and push the stock back to this year’s higher highs.

A sell-off followed by a close below the $0.08 mark, on the other hand, could give short sellers a reason to come in and push the stock to the $0.02 level, seen as the next substantial support level. In our view, the stock is destined to bounce back after the recent pullback.

What Does Puration Do?

Puration designs, develops, and produces water purification products. Its water filtration systems include personal water filter bottles as well as sports bottles and collapsible water pouches. The company also provides water filter pitchers, canteens shower head filters and water filter pumps.

Why is Puration Destined to Skyrocket?

Puration is destined to surge after the recent pullback on investors taking note of a string of positive development in recent weeks. The company is fresh from confirming that its sales for the 2018 fiscal year exceeded the $1 million mark, a significant milestone.

The company attributes the sales growth to strong demand for its lead product EVERx CBD Sports water as well as regional expansion. Puration also continues to ink deals with distributors in new areas across the U.S as it also continues to pursue new sales channels. Plans are also underway to pursue international distribution agreements that will pave the way for the company to pursue growth on the international scene.

Expansion Drive

The addition of Telluride Happy Water to the product line is also poised to continue contributing to sales growth. The company has already signed a $1 million agreement with Generex Biotechnology Corp, for the production of a private label, CBD infused water expected to contribute to 2019 sales.

“We are optimistic that $3 million in sales next year is a reasonable goal and we’re even setting a stretch goal of $5 million in sales with the additional sales contributions anticipated from our other beverage lines to include Telluride Happy Water and THCSavor ,” Puration in a statement.

Nouveau Life Pharmaceuticals, (USOTC:NOUV) – Kali Strategic Partnership

Following a spin-off of cannabis cultivation operations, Puration inked a joint venture with Kali Extracts and Nouveau Life Pharmaceuticals. The joint venture has already signed an agreement that paves the way for the expansion of Nouveau’s cultivation that will now include 100 acres for hemp growing.

The expanded cultivation operations should go a long way in supporting Puration plans of developing cannabis pharmaceuticals as it seeks to diversify its offerings.

Farm Bill Impact

Following the passing of the $867 billion Farm Bill in the U.S, Puration expects the market for hemp derived infused beverages to skyrocket going forward. Being a fast mover in the sector with over two years’ experience, the company remains well positioned to be one of the biggest beneficiaries of the expected demand.

According to Chief Executive Officer Brian Shibley, experience and brand recognition should set Puration apart in the sector going forward. EVERx CBD Sports Water is the leading water brand that the company is relying on, to generate significant value from the burgeoning sector

Bottom Line

The passing of the 2018 Farm Bill is the icing on the cake that strengthens Puration growth metrics in the burgeoning cannabis sector. The company has already curved a substantial amount of market share for itself in the niche CBD infused water market.

Sales growth in recent quarters attests to the company’s prospects as demand for CBD water continues to grow. The company looks set to continue generating significant sales and value from the sector thanks to its robust pipeline of products supported by an aggressive expansion drive into new markets.

The stock skyrocketing to record highs before pulling back, as part of a minor correction, means there is a lot of room to move on the upside at the back of strengthening fundamentals. The stock is an interesting pick as a long-term play, especially after the recent pullback.

We will be updating our subscribers as soon as we know more. For the latest updates on PURA and NOUV, sign up below!

Disclosure: We have no position in PURA or NOUV and have not been compensated for this article.

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Puration Inc (OTCMKTS:PURA) and Nouveau Life Pharmaceuticals Inc (OTCMKTS:NOUV) Joint Venture Gains Traction
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