Alkame Holdings, Inc. Updates West Coast Co-Packer Website, Signs Production Agreement With Pacific Sauces, And Reiterates $15M 2021 Revenue Goal (OTC PINK: ALKM)

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Alkame Holdings, Inc. Updates West Coast Co-Packer Website, Signs Production Agreement With Pacific Sauces, And Reiterates $15M 2021 Revenue Goal (OTC PINK: ALKM)

August 25
07:52 2021

Alkame Holdings, Inc. (OTC PINK: ALKM) is making moves to make its diversified offerings better. The company announced a major upgrade to its wholly-owned subsidiary,West Coast Co-Packer website, a new deal with Premier Sauces, and continued penetration into the PPE markets. Best of all, ALKM still believes it can reach its goal to deliver $15 million in revenues by the end of 2021.

The effort is there. Last month, ALKM announced that its wholly-owned subsidiary West Coast Co-Packer had received a $200,000 purchase order for its 0.13fl. oz. (4mL) Handout brand single-use packets. That followed receiving a 1,500-gallon shipment of its proprietary hand sanitizer gel to facilitate completing production of its $1M purchase agreement with Aladyn Protection Systems, LLC. That deal is the first step toward ALKM reaching to the more than $2B US hand sanitizer market opportunity.

In addition to its $200,000 sanitizer deal, ALKM expanded operations at Bell Food & Beverage Inc. , another of its subsidiary companies. That company recently secured a deal with Pacific Flavor Inc. to process, pack, and ship 270,000 units of Oregon Blueberries at ALKM’s enhanced facilities. It’s the first deal that showed its upgraded facility’s flexible and high-capacity capability. ALKM’s subsidiary has been the contract manufacturer for Pacific Flavor Inc. for the past five years, exporting hundreds of thousands of blueberry jars to Japan.

Building Value Step By Step

Indeed, at less than a penny a share, the value of these deals doesn’t appear to be reflected in the stock price. Still, step by step, ALKM is putting the pieces to make 2021 its most successful years in history. Moreover, they think that these incremental contracts will ultimately lead to bigger ones, thus keeping its $15 million revenue target square in its crosshairs.

And if ALKM continues to leverage its current contracts into bigger ones, its a goal that’s possible, noting the massive potential from the PPE sector. Many investors believe that if ALKM reaches its revenue target, a big portion will come through that channel.

Others expect that its collaborative efforts heading into the back half of this year will provide the golden ticket. So far, that strategy has allowed ALKM to take financial interest in and focus on a variety of market opportunities that have the potential to deliver substantial independent revenue streams. It’s further leveraging its proprietary technologies to contribute toward producing a variety of premium water-based goods, including bottled water and other ready-to-drink products, household pet products, horticulture and agriculture products, hand sanitizers, and more.

Partnerships are helping as well. ALKM’s collaborative interests certainly deserve attention on the valuation front. One to watch is value earned from EVERx CBD Sports Water, developed in conjunction with Puration, Inc. (OTC Pink: PURA) and North American Cannabis Holdings, Inc. (USOTC: USMJ). That product has sold more than a million dollars of product in 2020. Now, a sugar-free variety is set to be added to the EVERx CBD Sports Water line, produced alongside the company’s other beverage lines in ALKM’s new manufacturing facility. The company expects the sugar-free varierty to attract significant consumer attention.

ALKM has noted that its new and enhanced facility can effectively double the company’s original maximum output, allowing them to speed up the commercialization of their products across the United States. Best of all, the new facility will enable ALKM to efficiently handle a diverse range of production contracts while leaving room to fill its in-house obligations. Thus, there’s room to grow. 

Value Through Diversity

Better still, growth is already happening through ALKM’s approach to seizing upon new market opportunities. As an example, ALKM found success early into the COVID-19 outbreak by temporarily shifting its production focus to personal protective equipment (PPE) to help supply Oregon’s critically under-stocked hospitals. Not only did it help drive new revenues but it also provided essential medical items in a time of worldwide shortages. The short shift in manufacturing priorities paid off in the form of a $1 million purchase order from Aladyn Protection Systems, LLC to supply PPE-related products, primarily its hand sanitizer. Details on that order should be imminent.

Furthering that market opportunity, in early July, ALKM announced it had received a 1,500-gallon shipment of its proprietary hand sanitizer gel. That purchase led to a second substantial purchase order. That adds to revenues generated from its single-use Handout sanitizer packets. The excellent news for those looking long term is that both products can be long-term value drivers for the company.

Aspiring To $15Million

At ALKM, the race to $15 million is on. And with a well-positioned and diversified portfolio of assets, a surge in Q3 and Q4 could get them close. Still, reaching half that ambitious target would likely drive its share price substantially higher. That, too, can be a win for shareholders.

Remember, ALKM’s new manufacturing facility essentially doubles the company’s original production capacity. Thus, ruling out the opportunity for exponential growth mat be premature.

Of course, it’s a sum of the parts that will get ALKM to its goal. And it will be revenues from multiple interests that deliver the revenues they want. And with ALKM regularly providing revenue updates, it shows they are not shy to come face to face with the lofty estimates. That should be an encouraging sign for investors.

One thing for sure. If ALKM reaches its $15 million target, or even touches the $7.5 million mark, its share price likely won’t be anything close to its current $0.0012 level. Hence, for those that like risk-reward propositions, sprinkled with the potential for massive growth, Alkame Holdings, Inc. may indeed be an attractive play.

 

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