PAOG - Under the Radar CBD Biopharma Player Could Offer Major Upside

Augusut 13, 2020 -- InvestorsHub NewsWire -- via Goldman Small Cap Research -- PAO Group, Inc. (OTC - PAOG) is an emerging cannabis and CBD company targeting growth via two tracks. The Company is in the early stages of developing a  cannabis extract-based therapy to treat various respiratory diseases and illnesses including COPD and COVID-19. PAOG also owns a growing cannabis cultivation operation focused on hemp cultivation.

Investment Higlights (Summary)

Via its recent acquisitions, PAOG has re-positioned itself as an emerging CBD Biopharma company on a development path to treat two major respiratory diseases that each represent billions in potential market sizes. PAOG also acquired a cannabis cultivation operation generating $300,000 in annual revenue.

Leveraging a series of favorable studies, the Company is set to engage a CRO to initiate the process for potential FDA approval of RespRx, its new flagship COPD treatment. COPD represents an estimated $14.1B market by 2025.  

After completing a recent 25 patient study using RespRx to treat COVID-19 symptoms, PAOG is preparing to commence a similar development pathway for this disease. Management expects to soon file a CTAP (Coronavirus Treatment Acceleration Program) application and given the current pandemic, it is likely to be fast-tracked. 

Next Steps (Summary)

We should note that a number of CBD Biopharma companies are publicly traded, with market caps ranging as high as $100M or more. Based on our cursory due diligence we found one firm, Avianna (OTC – AVCNF – NR), which is also targeting the COVID-19 arena, that has a current market cap of around $27M. Perhaps as PAOG moves along the development path on either the COPD or COVID-19 track, it can trade toward this figure, assuming current financials and information are available.

Valuation and Conclustion (Summary)

As progress and milestones on the development path occur, PAOG’s shares warrant a closer look as they could serve as catalysts to drive the overall valuation higher for PAOG’s shares.
 

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SOURCE: Goldman Small Cap Research