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PAO Group, Inc. Stock Rockets 28% After Updates Point Toward Near-Term CBD-Based Nutraceutical Commercialization (PAOG)

PAO Group, Inc. (USOTC: PAOG) stock surged Wednesday by 28% and closed at its highest level since March 12th. Investors took interest earlier in the week following an update by the company that highlighted its plans to expand its CBD-based therapeutics and nutraceuticals program. Two treatment candidates are making their way through the development process. The first is RespRx, an asset acquired last year that targets the treatment of COPD. The second is CBD RELAX-RX, a nutraceutical designed to treat anxiety and depression. Combined, the two assets target a massive market opportunity expected to grow to $25 billion within five years. 

Helping to expedite the planned commercialization of each, PAOG engaged Veristat, a contract research organization (CRO) dedicated to the clinical advance of therapies and treatments through regulatory approval. They noted that Veristat is making substantial progress in validating and supplementing the underlying research behind RespRx. The progress toward bringing at least one of these potentially lucrative products to market has generated investor interest. Moreover, a move higher through current resistance at $0.009 could lead to the stock returning to its February highs, representing a more than 83% increase from current levels.

Adding to the momentum, PAOG is expecting to close on a deal that could expedite the commercialization of its products and provide a stake in a valuable extraction process.



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

PAO Group Sets Stage For Another Acquisition

That good news came in April with PAOG announcing its expectation to close on a deal that would provide new research funding and a 25% interest in a cannabis extraction patent. There, PAOG said it is final negotiations to enter into a partnership to conduct a CBD In Vivo Histological Research Study to accelerate RespRx through regulatory approval. In addition to funding, PAOG would gain a 25% interest in the underlying patented cannabis extraction technology through which the RespRx formula is derived. Longer-term, PAOG could have the opportunity to purchase the patent outright, which inherently brings numerous strategic options to monetize that asset.

Even better, the partnership interest in the underlying cannabis extraction process would immediately help expand PAOG's pharmaceutical development reach beyond RespRx and CBD RELAX-RX.

Keep in mind, the patent could be an enormous revenue-generating asset. In a previous update, PAOG noted that industry professionals believe the extraction process provides an extract comparable to GW Pharma (NASDAQ: GWPH), the pioneer in CBD-based treatment. Better still, that value could be monetized through licensing and partnerships, making it possible for PAOG to reap windfalls without having to bring any product to market. That could be in the plans, noting that GW Pharma was purchased by Jazz Pharmaceuticals (NASDAQ: JAZZ) for $7.2 billion earlier this year. Don't think that PAOG is unaware of that intrinsic value. 

Other deals are earning attention as well.

Additional Partnerships Bring Value

If investors take a longer-term approach to an investment in PAOG, the rewards could be substantial. Following guidance from a March update, PAOG said that its CBD Nutraceutical Development Program could deliver its first product to market before the end of the year. They noted that the logistical side of the rollout is in place, with Alkame Holdings, Inc. (USOTC: ALKM) and North American Cannabis Holdings, Inc. (USOTC: USMJ) supporting the marketing and co-packing requirements for the launch.

The convergence of positive news appears to be making its way to the share price. Moreover, with Veristat helping to expedite approvals, investors may be wise to position ahead of near-term milestones. Many longer-term investors in the company reflect back to February when shares traded sharply higher on substantial volume. Following a similar pattern, the 28% surge on Wednesday was accompanied by the second-highest daily trading volume since March. The highest day, which saw 47 million shares trade hands sent the stock higher by 21%. Comparing the two days could show that overhead resistance could be weakening.

YTD Increase Of 361% 

At the close on Wednesday, PAOG shares are higher by more than 361% year-to-date. And while the 28% surge helped push that percentage higher, it's notable to mention that the stock is substantially higher before that day. It's not a stretch to think that more gains will come.

With two therapeutics in play and a planned expansion of its research programs, PAOG is ideally positioned to create shareholder value in the coming weeks and quarters. In fact, with its drugs targeting billion-dollar markets, an announcement that puts commercialization in specific terms could generate a move higher of exponential proportion. 

And with multiple shots on goal, an agreement with a CRO to expedite planned approvals, and partnerships and acquisitions that add substantial value, PAOG could have a massive year ahead. If all goes as planned, this company could be a portfolio valuation game-changer.

 

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. 

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