PAO Group Inc. (OTCMKTS:PAOG) shares jumped 5% after the company said it will make its first CBD Nutraceutical sales in the fourth quarter. The first shipment will be to the company’s distribution partner North American Cannabis Holdings, Inc. (OTCMKTS: USMJ).
The company is to announce specifics about the shipment at its next formal product launch once the distributor is ready to begin distribution and sales. Once sales to the distribution partner start in the fourth quarter, PAOG projects revenues to grow steadily as the company already has follow-on products lined up.
PAOG is currently developing CBD Pharmaceuticals and Nutraceutical using intellectual property linked to a patented extraction method. Consequently, the company remains well-positioned to target the CBD Nutraceutical Market that is estimated to be worth $5.2 billion, and projected to reach $16.4 billion by 2027.
Additionally, the company is exploring strategic merger and acquisition opportunities as it looks to expand its product line and accelerate revenue growth. The long-term plan is to complement its existing CBD intellectual property while diversifying product production opportunities.
Market Reaction:
On Wednesday, PAOG stock increased 5.86% at $0.0056 with more than 12.85 million shares, compared to its average volume of 8.23 million shares. The stock has moved within a range of $0.0050 – 0.0057 after opening the trade at $0.0053.
