Alkame Holdings, Inc. (OTC PINK: ALKM) rose by 7% on Tuesday after announcing its proprietary water treatment technology expansion plans. Also, in its news, ALKM announced new patent application filings with the United States Patent Office to protect the innovations.
The news is another step forward for ALKM, which is making significant advances in its proprietary functional water technology. Specifically, ALKM has streamlined and improved its water manufacturing processes, resulting in fluoride-free, alkaline water with a lower oxidation-reduction potential (ORP) and its highest-ever oxygen content. The result is a “good-for-you” water that has been shown to aid in lactate clearance after exercise, toxin removal, and decreased recovery times.
The announcement is another milestone met for ALKM. Moreover, this new and improved water treatment technology can help ALKM penetrate several market sectors in addition to the production agreements already in place. The strengthening of its IP portfolio could also deliver substantial value, with approved patents potentially leading to partnerships, licensing, and collaborative arrangements.
The rally on Tuesday added to gains made last week after ALKM announced a deal through its wholly-owned subsidiary West Coast Co-Packer, Inc.
Subsidiary Deal In February
The gains on Tuesday followed another value-creating announcement made last week. In late February, ALKM said its wholly-owned subsidiary, West Coast Co-Packer Inc., received an initial purchase order for its Handout Protection hand sanitizer and wash combo single-use packets.
That agreement was channeled through their Canadian Personal Protection Equipment (PPE) distributor, TheraProducts Canada, Inc., and because of its usefulness during the ongoing pandemic, it is expected to lead to multiple new orders. Rightfully so.
Handout Protection could find itself a best-in-class product after demonstrating effectiveness in killing known COVID-19 strains and the new coronavirus variants known to spread 50% quicker than COVID-19. Investors took the news as a positive, noting the product as a potential revenue-generating game-changer for ALKM.
Few are debating its quality. In fact, it’s one of the few portable hand wash and sanitizer packets that allow people to wash and sanitize their entire hand. More specifically, Handout Protection enables users to clean not only their palms but also the tops and sides of the hands, including the fingers, under the nails, and up to the wrist to fight and kill bacteria and germs. And, with the pandemic raging and with hand sanitizing not expected to become less critical in the coming months and years, the product could earn and sustain high demand levels.
Best of all, ALKM expects this initial purchase to translate into additional near-term orders and generate a potentially substantial revenue stream through its subsidiary asset. That could be great news for ALKM’s share price going forward.
Other 2021 Value-Drivers
Other initiatives are expected to drive shareholder value higher in 2021. Moreover, with its diversified strategy, ALKM can benefit from having multiple shots on goal. Already, ALKM is developing value through its exposure to health and wellness products, its aquaculture water treatment division, an interest in CBD co-packing services, and its plans to enter the billion-dollar pet health and wellness sector. Another recent announcement has ALKM included in partnerships to penetrate the emerging industrial-use hemp markets with other publicly traded companies.
Thus, modeling Alkame Holdings from a forward-looking valuation could make more sense and account for projects that could deliver meaningful new revenue streams in the coming quarters. Alkame already provided insight into how it expects to grow its operations.
As noted, its wholly-owned subsidiary is already generating revenue from a purchase order for its premium gel-hand sanitizer. Those orders are expected to continue as the PPE market is showing no signs of slowing demand. Moreover, West Coast CoPacker is also ideally positioned to capitalize on its opportunities by being a specialty liquid and single-serve manufacturer, co-packer, private labeler, and contract packager. Growth there benefits ALKM.
ALKM, also through West Coast Co-Packer, Inc., announced a deal with Puration, Inc. (OTC Pink: PURA) to extend its services as the bottler of EVERx CBD-infused Sports Water. There, ALKM intends to grow the partnership and bring the companies closer together to initiate multiple new CBD-infused consumer products. An update in February detailed plans for the two companies to produce and test market a CBD-infused liquid sugar and a CBD pet food supplement. The two are also in the early stages of developing other CBD-infused products, as well as hemp-derived beverages and edibles.
Early Stage Agreements To Enter Nutraceuticals Markets
Two other deals can accelerate near-term growth. First is an agreement with PAO Group, Inc. (OTC Pink: PAOG) to co-development and distribute PAOG’s nutraceutical product line. There, ALKM has the potential to tap into PAO’s expected growth as they expand their reach into the CBD and nutraceuticals markets. ALKM suggests that the deal with PAOG could be quickly accretive to earnings since little to no capital expense is necessary to advance the initiatives.
Another deal is with North American Cannabis Holdings, Inc. (OTC Pink: USMJ) to help USMJ revitalize its interests and investments in the cannabis and CBD space. USMJ has recently announced several new initiatives to utilize its expertise to target broad opportunities in the cannabis sector. More details on how that partnership can add value are expected in the coming weeks.
Thus, even with the 7% spike on Tuesday, the current share price may be missing the near-term catalyst potential in play for ALKM. And that could expose a massive opportunity at these share price levels.
Still, consider ALKM as a “longer” term investment. In other words, give the company time to develop, with an investment time horizon set at three quarters, not three days. Moreover, take time to learn about and understand the inherent value from its more than ten subsidiaries and ALKM’s willingness to invest in new ventures and opportunities.
Undoubtedly, ALKM is positioned to capitalize on its multiple shots on goal in 2021. Moreover, with the many things in play at ALKM, there should be no shortage of news. If invested, watch the wires. If not, consider the value opportunity at these undervalued levels.
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