PAO Group, Inc. Rallies 21% On Monday; Investor Update This Morning Adds Fuel To Bullish Sentiment

April 13 11:20 2021

PAO Group, Inc. (USOTC: PAOG) stock closed 21% higher Monday preceding its planned investor update released this morning. In a pre-market release on Tuesday, PAOG updated investors about its expanding CBD-based therapeutics and nutraceuticals program that now includes two promising treatment candidates. The first is RespRx, targeting COPD, and the second, CBD RELAX-RX, a nutraceutical designed to treat anxiety and depression. The market opportunity is substantial, with estimates calling for at least a $25 billion combined market opportunity within five years. 

Investors stayed bullish after the release, sending shares roughly 9% higher in early morning trade. Highlights from its update discussed the potentially transformative acquisition of RespRx from Kali-Extracts, Inc. (OTC Pink: KALY) in 2020. That treatment is under development for Chronic Obstructive Pulmonary Disorder (COPD) with CBD compounds derived from a patented cannabis extraction method – U.S. Patent No. 9,199,960 entitled “METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT.” According to a prior release, that extraction process provides quality extracts comparable to GW Pharma (NASDAQ: GWPH). GW Pharma was purchased by Jazz Pharmaceuticals (NASDAQ: JAZZ) for $7.2 billion earlier this year. Thus, investors have reasons to be bullish.

Also catching a good amount of attention is the announcement that PAOG is working with Veristat, a contract research organization (CRO). That agreement is expected to leverage Veristat’s expertise, which is dedicated to advancing clinical therapies and treatments through regulatory approval. PAOG is also expected to soon announce new breakthroughs in its CBD RespRx pharmaceutical research.

Other deals are earning attention as well.

Partnerships To Accelerate Commercialization

Last month, PAOG released a comprehensive update on its CBD Nutraceutical Development Program, saying that the first CBD nutraceutical product is expected to come to market before the end of the year. That effort is supported by Alkame Holdings, Inc. (USOTC: ALKM) and North American Cannabis Holdings, Inc. (USOTC: USMJ), who will contribute to the logistics and marketing side of the product launch.

Now, with the run toward commercialization in play, investors are paying close attention to how PAOG can capitalize during the remainder of the year. Notably, investors appear to be investing ahead of the news, purchasing what they believe are significantly undervalued shares. In February, shares traded approximately 100% higher than current levels, and the information this morning could ignite a rally back toward those levels. Volume on Monday was substantial, with more than 47 million shares trading hands. Follow through today could indicate momentum is on PAOG’s side.

Revenue Is A Defining Advantage For PAOG 

Of interest as well is that PAOG is a generating company. That, in and of itself, could help drive share prices higher. 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. In fact, it could have helped secure its second acquisition and retain Veristat to represent its interests.

In addition to revenues, many think that PAOG can benefit from consolidation in the sector. With JAZZ purchasing GW Pharma for $7.2 billion earlier this year, investors quickly turned back to CBD stocks, especially toward emerging players that can be partnered with or purchased at discounted prices. However, those prices have been rising, causing some to speculate that the consolidation pace will speed up in 2021. And that could be excellent news for PAOG.

Keep in mind that PAOG shares are higher by more than 385% YTD. Thus, the 21% gain on Monday only adds to an already staggering share price increase. Moreover, the rally started last week is news-based, and the update on Tuesday added fuel to the bullish premise that PAOG could deliver at least two catalysts later this year. 

Better still, with two therapeutics in play, PAOG is ideally positioned to create shareholder value from partnerships and/or licensing agreements. In fact, with its drugs targeting billion-dollar markets, it’s likely that as the company nears its planned commercialization that offers could be entertained. The patented extraction process could be the lynchpin in getting a deal done if they elect to go that route.

Clearly, investors are responding well to the company’s developments. For a nano-cap stock, PAO Group has an impressive product pipeline in mid and late-stage development. As each program moves closer to getting its product approved for sale, PAOG could see a run. 

With multiple shots on goal, having an agreement with a CRO, and partnerships that can accelerate product commercialization, PAOG is a small stock that could deliver massive rewards. This one is definitely ripe for consideration.

 

Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Hawk Point Media was compensated three-thousand-five-hundred-dollars by wire transfer to produce research, video, email, newsletters, and editorial commentary for PAO Holdings Group, Inc.. by a third party. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Media strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: Hawk Point Media
Contact Person: KL Feigeles
Email: [email protected]
City: Miami Beach
State: Florida
Country: United States
Website: https://www.greenlightstocks.com

  Categories: