PAO Group, Inc. Approaches a Probably Transformative Catalyst with Launch of First CBD-Primarily based Nutraceutical in 2021 (OTC Pink: PAOG)
Give PAO Group (OTC Pink: PAOG) investors credit for their patience. Also, thank them for understanding that the company's long-term forecast is excellent with several expected catalysts only weeks away. Anyone can be a revenue-generating game changer for PAOG.
Additionally, a recent surge in volume and price suggests new investors are jumping into the action. And with PAOG's bullish update last month, it's hard to blame them. It has brought PAOG's short- and long-term value proposition into focus. While the longer-term scenario could deliver exponentially better returns, the planned catalysts could also bring significant gains for the stock by year-end.
Therefore, regardless of an investor's time horizon, positioning yourself in front of at least two expected catalysts could be a wise decision. Here is what happens.
CBD-based nutraceuticals close to expected launch
First and foremost, PAOG is close to completing development on two valuable CBD-based assets. Both target significant market opportunities. In fact, the combined potential for its COPD and anxiety nutraceuticals alone exceeds a $ 16 billion chance. The better news is that PAOG believes its drugs can address additional indications that also offer lucrative opportunities.
And with PAOG saying they are close to applying for regulatory approvals, their optimism could be replaced with product launches in the next two quarters. If so, current stock prices could rise exponentially.
Rightly so, especially given that the markets are pricing forward-looking multiples. Updates have helped fuel bullish sentiment. In June, PAOG reiterated that the first of two CBD nutraceuticals is still on the way to launch by the end of this year. And with analysts expecting the CBD nutraceuticals market to grow more than 200% to $ 16.4 billion by 2027, PAOG is in the right sector at the right time. Better still, PAOG is in a late stage of development which could help position itself as a leader in treating targeted indications.
Yet they have more than one product; they have the infrastructure to bring these nutraceuticals to market. There, partnerships with Alkame Holdings, Inc. (ALKM) and North American Cannabis Holdings, Inc. (USMJ) could accelerate marketing processes and pool resources to develop, package and market its CBD-based therapeutics.
Incidentally, these products could generate increasing market demand.
CBD RELAX-RX is a potential billion dollar asset
Although ranked second in the clinic, CBD RELAX-RX is expected to be the first nutraceutical to hit the market. This drug targets the multi-billion dollar anxiety and depression treatment market. And it's a market that continues to grow in size and in demand, supported by patients who want alternative treatment to existing drugs. PAOG believes that CBD RELAX-RX could be an answer.
That's because the nutraceutical is specifically designed to provide top-notch treatment, using a CBD extraction process that some say is comparable to that made by GW Pharma, which sold for $ 7 billion last year was sold to Jazz Pharmaceuticals (NASDAQ: JAZZ). And it is this extraction process that could offer even more shareholder value on the IP side. More on that later.
Even so, the chance is getting bigger. While CBD RELAX-RX could become a revenue-generating game changer for PAOG, it has a second chance at treatment goals that could prove to be equally lucrative.
That potential comes from RespRx, its second late-stage CBD-based therapeutic aimed at treating chronic obstructive pulmonary disease (COPD). Much like the depression and anxiety treatment markets, this one is targeting a multi-billion dollar opportunity.
It also has investors and PAOG upbeat about success, thanks to the program, which leverages data from 2015 studies suggesting that CBD helps open the bronchi. In addition, these studies show that the treatment could be effective and safe. The results showed that the nutraceutical was well tolerated and lacked the often serious side effects associated with current standards of care.
Even better, many experts believe that once a viable CBD-based alternative becomes available, it will have the opportunity to take advantage of significant market demand. And this market opportunity is in PAOG's crosshairs.
Still, a small share of this market would represent a massive stream of steady revenue. Hence, even second or third place is still a potential billion dollar value – and PAOG is poised to snag its share of the price.
Keep in mind that PAOG also owns some IPs of its own. The company's CBD-based treatments are based on a patented process for extracting cannabidiol – "METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUD THE CANNABIS PLANT" (US Patent No. 9,199,960), which produces an extract that works with the Quality from one of the industry's pioneers, GW Pharma. This gives PAOG a significant opportunity to monetize the RespRX platform and extraction process through licensing agreements, thereby maximizing the value of that intellectual property. With this money, the company could then finance the development of new products. Licensing can play an essential role in complementing these initiatives. Better still, its intellectual property alone could become a cash cow for the company.
In short, PAOG is positioned for significant growth. The best news … the rewards for his work are expected to be coming soon. That bodes well for the company and its investors.
Watch out for catalysts in Q3 and Q4
Indeed, there is growth on the table. And with at least two short-term catalysts in mind, investors may be right if they expect value to rise by the end of the year.
And since these announcements may have a game-changing impact on the company, trading ahead of the news could be a wise consideration. After all, launching either product for less than a dime a share could be a life-changing investment for some and a life-saving product for others. PAOG thus creates a win-win opportunity.
And finding an early investment opportunity in companies that successfully accomplish this mission usually delivers exponential returns. So PAOG deserves to be in the game.
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