PuraVerde: Maximizing efficiency in Cannabis

For anyone in cannabis, it is very well known that this is one of the most volatile, rapidly evolving industries in America, particularly for investors and operators. The regulatory landscape and the fact that this is a re-emerging industry makes it very challenging to create sustainable businesses; the current economic environment showing financial distress is hitting all industries alike, and if we add all these ingredients up, we can find ourselves in a complex situation to navigate, especially when it comes to creating and growing businesses in this industry. However, there are companies out there whose model has allowed them not only to survive, but to thrive in difficult financial times, and in markets where recreational use is not even live yet; one of those is PuraVerde, a premier medical cannabis processor in Oklahoma.Find out more about Pura Verde by clicking here.

Oklahoma’s Cannabis Market Overview in relation to PuraVerde’s business strategy:

Although the state has not legalized recreational use yet (but there is increasing public pressure to vote this issue in upcoming elections), it was in mid-2018 where the state legalized medical use and their market got established. Uniquely in their legalization strategy, the state will allow for licensees to export products once federal legalization occurs, differentiating itself from other medical and adult markets in America, as local operators will have the opportunity to capitalize on this by rapidly expanding their networks, early and right after federal legalization. This is one of the pillars of PuraVerde’s strategy, as they have worked to establish relationships with nation-wide distributors in preparation for federal legalization.

In the first six months after medical legalization, the state generated $1M dollars in revenue, and increased the total sales to $345M in 2019, $800M in 2020, $945M in 2021, and bringing in $543M the first 8 months of 2022. The team at PuraVerde has been operating in the state for almost 4 years, holding a cultivation and processing licenses, and they have established the company as a leader in the medical cannabis space with their unique approach of innovation, technology, and maximizing efficiency while cutting down costs, making it a highly profitable company right out the gate. Taking in consideration that Oklahoma has one of the lowest costs of cannabis production nationwide, and that PuraVerde has implemented efficiency as a pillar for making business, it is of no surprise that their costs of production are significantly low compared to their competition, making them more profitable than competitors while keeping product costs low even at the retail level. This has allowed them to get over $10M in profits in the time they have been in business.

PuraVerde’s Leadership Team

The leadership team at PuraVerde is uniquely diverse in strengths, skills, background, and future vision for the company. Matt Mastrangelo, CEO and co-founder, has a background in the wholesale and retail industries bringing more than 25 years of experience to the table. Ryan Bishop, COO and co-founder, brings over 23 years of experience in real estate, including international large development projects and residential construction. Peter Bishop, CFO, has more than 20 years of experience in entrepreneurship and small/start-up businesses. Their unique approach in developing a sustainable company by keeping expenses low while maximizing efficiency in production has allowed them to work with 13 tested and recognized brands, of which some are owned by the company and some others work with them for private labeling of products.

Their approach to serve both end consumers and other cannabis businesses is unique; the company is using nanotechnology for research and development of products, to enhance the cannabis experience of the patient/consumer, but they also help cannabis manufacturers to cut their production costs significantly. Their focus in innovation, technology and automation has allowed them to sustainably grow their footprint in the local market, and they will be ready to expand throughout other cannabis markets as mentioned previously once federal legalization occurs.

Pillars of growth for PuraVerde

The company is currently raising capital to expand upon their current mode; considering its uniqueness in the industry, the leadership team has envisioned the roadmap of success according to three key pillars of growth:

– National Campaigning: PuraVerde aims to distribute their products by partnering with Mr. Checkout, a company with a distribution network that covers most of the continental US states, Canada, and certain countries in the Caribbean. With their home state’s legal set up, the company is positioned to be with the early risers in expansion after federal legalization occurs, allowing them to (potentially) get more market share in other states and territories, and making them a strong competitor against other manufacturer and brands, since their model allows them to significantly reduce and keep costs of doing business down.

– Talent acquisition: a great company is built not only with the best strategy, but also with including the best talent to achieve heightened levels of success, and the leadership team at PuraVerde is aware of that. Their capital raise is envisioned to also help recruit top talent for their mid and upper-level management team to ensure long term success of the expansion plans.

– Automation: the company currently has a state-of-the-art space of 20,000 sqft in which they work their magic, including a research and development laboratory, kitchen, processing equipment, etc. As they are aware what are the key areas to reduce costs and maximize efficiency even more, by automating more of their processes in their facility, they ensure their profitability stays stable even with the ever-evolving volatility of the industry. This also taps on the company’s capability for research and development of products and other molecules, as they have developed a process that allows them to convert CBD to THC while decreasing costs of production.

This is an exciting investment opportunity that can be a game changer in the industry as we know it, even with its ever-changing environment. Investors can find PuraVerde’s deck and information here.

(Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).