PAO Group, Inc. Has Two CBD-Based Therapeutics In Play; Planned Launch For One In September Puts Catalyst In Play

April 06 08:58 2021

PAO Group, Inc. (USOTC: PAOG) stock is likely to build positive momentum ahead of plans to launch its first CBD-based nutraceutical product next quarter. In a release last month, PAOG said it has supplemented its RespRx COPD program, adding CBD RELAX-RX, a nutraceutical targeting the treatment for anxiety and depression. That market is expected to reach a value of $18 billion by 2025 and puts a second billion-dollar market opportunity in play.

The September 2021 “go-to-market” would be a sure catalyst for PAOG. And helping that cause is Alkame Holdings, Inc. (OTC Pink: ALKM) and North American Cannabis Holdings, Inc. (OTC Pink: USMJ), slated to provide logistical and marketing expertise. Combined, the three should have the firepower needed to bring this potentially lucrative revenue-generating asset to market. 

Further, the run toward commercialization could put the stock back into rally mode and send shares back toward highs of $0.02 set in February. From current levels, that translates into a more than 177% gain. And that increase could stem from news of just a single product launch. PAOG has other promising products in the queue as well. 

PAOG Could Rally Ahead Of Planned September Launch

Investors should note that PAOG is developing a comprehensive CBD nutraceuticals program that could deliver substantial long-term rewards despite its sub-penny price. In fact, its investment and research in developing targeted CBD-based pharmaceutical and nutraceuticals products positions PAOG for both near and long-term gains. Better still, with the company already expecting to post revenue this year, commercialization of either CBD RALAX-RX or RespRx later this year would compound revenue growth and help to crush current revenue estimates. That would be great news for the company and its investors. 

The transformation at PAOG began after it acquired RespRx from Kali-Extracts, Inc. (OTC Pink: KALY). That asset is a patented development-stage CBD-based treatment for Chronic Obstructive Pulmonary Disorder (COPD). The patent, by the way, is a crucial asset that protects methodology to extract potent CBD properties derived from cannabis. That market protection could be valuable on several business fronts.

In fact, it not only protects PAOG’s investments in research but also positions them to benefit from licensing and partnership opportunities. And those could come ahead of its planned CBD nutraceutical products launch in Q3. There, two treatments are in play.

Video Link: https://www.youtube.com/embed/mlG8HDv06uk

CBD-Based Therapeutics Targeting Massive Markets

Its first, RespRx, is a CBD nutraceutical product targeting the Chronic Obstructive Pulmonary Disorder (COPD) market. That debilitating disease affects more than 60 million people and has an addressable treatment market that surpassed $10 billion in 2016. It’s listed as the third leading cause of death worldwide, with the market expected to surge to a $14.1 billion treatment opportunity by 2025. 

Helping to expedite its development and planned approvals, PAOG is working directly with the Puerto Rico Consortium for Clinical Investigation (PRCCI). The good news is that the relationship could extend to additional research partnerships and accelerate the development of other CBD-based initiatives.

In fact, the existing relationship could benefit the development of CBD RELAX-RX in that market. As noted, that nutraceutical targets a billion-dollar anxiety and depression market opportunity that is expected to reach $18 billion in size by 2025. Importantly, don’t let PAOG’s market cap fool you. Although they are a small company, with assets and patents in hand, they are well-positioned to earn a share of a lucrative opportunity.

Moreover, with CBD showing itself to be a safer alternative to prescribed pharmaceuticals, PAOG could be as well-positioned as any to capitalize on opportunities in these two markets. 

Having revenues helps.

Revenue Is A Defining Advantage For PAOG 

Keep in mind, PAOG has a unique advantage over most of its nano-cap peers- they are generating revenues. That, in and of itself, is worthy of higher valuations. Earlier this year, PAOG said it expects to generate $300,000 in sales from its cannabis cultivation subsidiary. Although not a lot by large-cap standards, for PAOG, it could be enough to bring its products to market and increase R&D efforts to target other CBD-based therapeutics and nutraceutical market opportunities. 

For now, though, PAOG has as good a chance as any to maximize its assets. In fact, given time, there is reason to believe they can earn a similar growth trajectory to that of GW Pharma (NASDAQ: GWPH). That company took years to develop a product, had massive swings in share price, and endured years of shareholder scrutiny. But they pioneered a sector that opens the door to even the smallest of companies.

Thus, with CBD-based therapeutics now widely accepted as effective treatments and sold across the country, PAOG could very well exceed expectations, especially with partnerships and/or licensing agreements to provide development capital. Still, PAOG expects to market its first product on its own by September, putting a near-term catalyst in play, regardless of whether it inks a deal.

That could make the next two quarters an exciting time to be a PAOG shareholder. And if they can successfully bring RespRx and/or CBD RELAX-RX to market as planned, the rewards can be substantial. 

Precedent Of Value In CBD-Based Therapeutics

Look no further than the deal that Jazz Pharma (NASDAQ: JAZZ) made to acquire GW Pharma. They purchased that company for $7.2 billion earlier this year and caused a rush for investors to find emerging players in the sector. It was at that same time that PAOG saw a massive surge in value. And, with investors rotating back toward the CBD sector, PAOG could again be in focus.

Better still, its two drugs in development and a patented extraction process in hand could produce the initial wave of interest. Additional value can be earned when investors affirm the company as a viable products-based contender in its respected markets. 

Thus, despite its roughly 260% year-to-date gains, PAOG could have substantial room to run higher. That is especially true if its first planned product launch stays on schedule for next quarter. Certainly, PAOG would be ideally positioned to create shareholder value from partnerships and/or licensing agreements if it does. In fact, either type of agreement could initiate a formidable development campaign that leverages its patents, secures its competitive advantage, and maximizes its opportunities in at least two billion-dollar treatment markets.

All of the scenarios above bode well for PAO Group, Inc. They also make this nano-cap CBD therapeutics company well-positioned for exponential growth in 2021. In short, keep PAOG in focus.

 

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