Shares of North American Cannabis Holdings, Inc. (USOTC: USMJ) surged on Monday by more than 60% after the company confirmed entering into strategic negotiations with Puration, Inc. (USOTC: PURA). The move follows a huge gains made last week when the news broke of the collaboration. The two companies expect to leverage their individual expertise toward a common goal.
PURA produces EVERx CBD Sports Water with over $2 million in annual sales. USMJ runs a cannabis ecommerce business that includes a cannabis products logistics operation. The alliance could translate to multiple efficiencies for each company.
Also last week, PURA announced launching its hemp lifestyle business initiative built around a $1.3 million property purchase in Farmersville, Texas. That location is where the company plans to construct multiple hemp centric enterprises to promote the full industrial potential of hemp. Notably, PURA has already established partnerships with Alkame Holdings, Inc. (USOTC: ALKM) and PAO Group, Inc. (USOTC: PAOG). Now, USMJ can be brought into the mix to potentially make each of those deals stronger. Although there have not been too many details released of yet, investors appear motivated to take advantage of the move.
Also interesting is that the two companies already share the same majority shareholder. Thus, the plan to construct a strategic and synergistic strategy designed to optimize shareholder value for both companies within the evolving cannabis economic sector is certain to travel downstream to the rest of the retail shareholder class. Undoubtedly, the deal is intriguing and could add significant value to multiple parties.
Following the trend on this one makes sense. Moreover, if the Biden administration does his part to relax the laws governing cannabis and how it is regulated in the broadest sense, USMJ could be a high flyer with massive near and long-term potential.
