Alkame Holdings Inc. (OTCMKTS:ALKM) is about to complete another milestone development, creating a potential catalyst that could send stocks higher in the near future.
Last week, the company announced that its wholly owned subsidiary, West Coast Co-Packer, Inc., is close to completing the buildout of its new production facility. Located in Salem, Oregon, the new food and beverage manufacturing plant will support long-term business expansion while also providing immediate benefits to the manufacture of its currently available products. The new manufacturing capacity will allow ALKM to quickly ramp up its production rates, supporting the company on its goal of reaching $15 million in annual revenues. With many of its products already on the market and additional entries in development, the company is well on its way to achieving this revenue goal.
The new facility features a total of five loading docks, three of which at ground level and two on the second floor. This is a substantial upgrade from the two loading docks available at the previous location, and will support ALKM as it increases production rates and introduces new products to its portfolio. The facility is supplied with modern equipment that is both more efficient and more compact than its other facility, which will leave much more room for keeping finished goods separate from production and shipping areas. The facility currently has extra room for storage space as well, which ALKM plans to fill with more equipment or products as it continues its expansion.
The Salem facility is expected to double the company’s capacity for clients and production, giving a substantial boost to its revenues. The cutting-edge production line at the facility is easily able to produce upwards of 10.36 million bottles per year, which would result in an estimated gross revenue potential of $15.5 million each year. ALKM will have effectively doubled its production power following the opening of the facility, and its stock valuation is sure to jump to match the company’s new potential – meaning investors should start paying attention before it officially reaches operational status.
A New Facility Brings New Products
In order to maximize the manufacturing and revenue-generating potential of the new production facility, ALKM has announced the further expansion of its specialized beverage line.
Last week, the company confirmed that its West Coast Co-Packer subsidiary has entered into a collaboration with Simple Beverages LLC to introduce a new line of beverages to the company’s portfolio. Specifically, the team will design and manufacture three new CBD-infused drinks, targeting the $3.5 billion CBD market.
Alkame has previously worked with Simple Beverage on the release of their Lemon-Aide beverage, a coconut-flavored lemonade containing 25mg of CBD in an eye-catching glass bottle. The offering has proved to be one of the best-selling items in the company’s portfolio, inspiring the team to further expand the line to include three new flavors: sweet tea, coconut lime lemonade, and “half and half” iced tea and lemonade, all of which containing 25mg of CBD. The water base of the drinks will be produced using Alkame’s proprietary water treatment technology, which produces premium oxygenated alkaline water that is infused with additional minerals, antioxidants, and electrolytes.
The CBD market has become more potentially lucrative than ever, thanks to easing legal restrictions and the higher profit margins stemming from the widespread availability of CBD-rich hemp plants. Now armed with a new production facility, ALKM will be able to rapidly produce and distribute the new products and increase its presence in stores nationwide. The combination of the facility’s opening and the release of the new beverage line could serve as a major near-term catalyst for growth in ALKM’s valuation.
The Undervalued Potential Behind ALKM
Alkame Holdings has never been in a better position than it is now to fully realize the potential of its portfolio, and there may have never been a greater opportunity for its investors as well.
The company’s wholly owned subsidiaries use patented technologies to produce high quality water-based products that target a variety of unique markets. The company has created a solid foundation through its accretive partnership strategies, as well as its focus on targeting a wide range of potential market opportunities. ALKM has created multiple shots on goal, identifying applications for its products in sectors involving consumer bottled water and RTD products, household pet products, horticulture and agriculture, hand sanitizers, and other areas that could benefit from premium water-based solutions.
Other examples of already-available products from ALKM include its EVERx CBD Sports Water, a collaboration with Puration, Inc. (OTC PINK: PURA) and North American Cannabis Holdings, Inc. (USOTC: USMJ). The company has just announced a new sugar-free variety of this product, and both offerings will greatly benefit from the new production capabilities of the Salem facility. Remember, these products have already seen success being produced in the original facility – the doubled production capacity of the new plant could be transformational in strengthening the company’s brand presence nationwide.
Finally, the company management has demonstrated that it is quick to adapt and not to be deterred by outside challenges. The global pandemic in 2020 created roadblocks for industries across the board, but ALKM spent the time exploring potential avenues for its technology to be of use in a nation then-plagued by shortages of essential goods. The company temporarily switched its focus to the production of premium personal protective equipment (PPE) such as hand sanitizer in 2020, a move that paid off tremendously in the form of a $1 million purchase agreement with Aladyn Protection Systems, LLC. The brief shift into the PPE sector could result in long-term opportunities for ALKM as it is complementary to its usual co-packing services, bringing additional revenues to the company’s overall earnings from its main portfolio.
All things considered, ALKM has crafted an incredibly solid foundation that grants the company multiple shots at generating revenues from diversified markets. The near-operational status of its newest facility will effectively double its client and production capacity and be instrumental in the manufacture of its existing and upcoming products. With these developments expected to be completed very soon, investors may be wise to consider a purchase before the company’s estimated $15 million in annual revenues start becoming a reality.
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