Alkame Holdings, Inc.’s New Production Facility Nears Operational Completion; Expected To Help Generate $15m in New Revenues

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Alkame Holdings, Inc.’s New Production Facility Nears Operational Completion; Expected To Help Generate $15m in New Revenues

June 03
07:44 2021

Alkame Holdings Inc. (OTCMKTS: ALKM) is nearing its next milestone reached, and it could become a catalyst that sends its stock substantially higher. Better said, ALKM is on the verge of transformational achievement.

Last week, the company announced that its wholly-owned subsidiary, West Coast Co-Packer, Inc., is nearing the buildout completion of its new Salem, Oregon production facility. Months in the making, the new manufacturing plant will support both near and long-term business expansion while also providing accretive cost-saving benefits to its existing product portfolio. Better still, according to ALKM, the increased capacity will allow ALKM to quickly ramp up its production rates, positioning the company to reach an expected $15 million in revenues. 

The new facility features five loading docks, three of which are at ground level and two on the second floor. This substantial upgrade compares to the two loading docks at its prior location and is designed to support ALKM’s planned rollout of several new products this year. Further upgrades include modern, compact equipment that is more efficient and allocates substantially more floor space to keep finished goods separate from production and shipping areas. Even better, the facility is built with growth in mind which can expedite expansion into new products and services offerings.

In fact, as it stands, the Salem facility is expected to double the company’s production capacity, which is likely to translate into a sharp rise in 2021 revenues. Alkame noted that the state-of-the-art production line at the Salem location can produce upwards of 10.36 million bottles per year, resulting in an estimated gross revenue potential of $15.5 million per year. Thus, the official opening should expose a considerable value opportunity in ALKM stock, especially with shares trading lower in sympathy with the broader small-cap markets. 

A New Facility Brings New Products

Still, while markets are generally weak, ALKM has taken a path toward increasing shareholder value by building a production facility to maximize its manufacturing and revenue-generating potential during the back half of this year. Key to its growth is the announced expansion of its specialized beverage line.

Last week, ALKM confirmed that its West Coast Co-Packer subsidiary has collaborated with Simple Beverages LLC to develop and introduce a new line of beverages. Specifically, the team will create three new CBD-infused drinks, targeting a massive $3.5 billion CBD-based drink market.

Alkame and Simple Beverage share prior success, working together to release their Lemon-Aide beverage, a coconut-flavored lemonade containing 25mg of CBD in an eye-catching glass bottle. The product has proved to be one of the best-selling items in the company’s portfolio, inspiring the team to further expand the line to include three new flavors: sweet tea, coconut lime lemonade, and “half and half” iced tea and lemonade, all of which contains 25mg of CBD. The water base of the drinks will be produced using Alkame’s proprietary water treatment technology, which makes premium oxygenated alkaline water infused with additional minerals, antioxidants, and electrolytes.

As most know, the CBD market has become more potentially lucrative than ever, thanks to easing legal restrictions and the higher profit margins coming from more easily sourced CBD-rich hemp plants. Now armed with a new production facility and an enhanced logistics network, ALKM can efficiently produce and distribute new products and build its retail footprint nationwide. 

Indeed, the combination of the facility’s opening and the release of the new beverage line could deliver a significant near-term catalyst to inspire ALKM’s valuation. Its partnerships will kick in value as well. 

The Undervalued Potential In ALKM

Alkame Holdings appears to be in its best position ever to capitalize on the multiple revenue-generating opportunities its product portfolio offers. Thus, that position makes it a potentially lucrative time to be a shareholder as well. 

Tapping into its inherent value, ALKM plans to leverage its wholly-owned subsidiaries’ patented technologies that produce high-quality water-based products that open opportunities to unique markets. Already, ALKM is utilizing those assets to create value through its accretive partnership strategies and its focus on targeting a broad range of diverse opportunities. 

In fact, by implementing a comprehensive strategy, ALKM has created multiple shots on revenue-generating goals by targeting its products toward sectors including consumer bottled water and RTD products, household pet products, horticulture and agriculture, hand sanitizers, and other areas that benefit from premium water-based solutions.

Other examples of portfolio products from ALKM include its EVERx CBD Sports Water, a collaboration with Puration, Inc. (OTC PINK: PURA), and North American Cannabis Holdings, Inc. (USOTC: USMJ). There, the pair recently announced a new sugar-free variety of that flagship product, and it’s expected that both products will significantly benefit from the production scale at the Salem facility. Updates are expected soon.

Taking On 2H 2021 With Momentum

Indeed, the remainder of 2021 is set up nicely for growth. And management has undoubtedly demonstrated its ability to adapt and not to be deterred by economic challenges. This was exhibited most when the global pandemic in 2020 created roadblocks for industries across the board. But instead of succumbing to the pressures, ALKM spent the time exploring potential avenues for its technology and logistics expertise to be used in a nation plagued by shortages of essential goods. 

During that period, ALKM temporarily switched its focus to the production of premium personal protective equipment (PPE) such as hand sanitizer, a move that paid off tremendously in the form of a $1 million purchase agreement with Aladyn Protection Systems, LLC. Better still, the brief shift into the PPE sector could result in long-term opportunities for ALKM as it is complementary to its usual co-packing services. Thus, by thinking outside its box, ALKM positioned itself for sustainable and recurring revenue streams from new multi-million-dollar markets.

All things considered, ALKM has crafted an excellent strategy to seize upon multiple shots at generating revenues from diversified markets. And with the near-operational status of its newest facility effectively doubling its production capacity, growth across its production board may come sooner rather than later. 

Best of all, with the infrastructure enhancements expected to be completed within weeks, investors may be wise to consider ALKM stock at current levels. After all, once the company announces its first tranche of business toward its estimated $15 million in annual revenues, the window of opportunity will likely close.


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