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Alkame Holdings, Inc. (OTC Pink: ALKM) Confirms First Shipment in $1M PPE Deal with Aladyn; New Manufacturing Facility Will Boost Expansion

Alkame Holdings, Inc. (OTC Pink: ALKM) is on a revenue-driving mission. Adding to an already busy 2021, the company announced earlier this week that it secured a $1 million contract to provide Aladyn Protection Systems, LLC with hand sanitizer. That deal adds to several other deals that could make 2021 its best year ever.

On Tuesday, ALKM confirmed that the first truckload of branded premium hand sanitizer is out for shipment to Aladyn, marking the beginning of a potentially lucrative and long-term business relationship between the two. The deal comes as ALKM continues to monetize opportunities in multiple product sectors. Earlier this year, ALKM took a short-term shift in its business focus to capitalize on sales opportunities in the PPE market, with products originally developed and sent to Oregon hospitals that were in desperate need during the pandemic. However, that shift could prove more valuable than expected. And thanks to its enhanced co-packing services, the venture could become an impressive revenue-generating business.

Already, ALKM has a dozen subsidiary companies targeting diversified sectors and opportunities. And as the global markets continue to recover economically from the headwinds of COVID-10, they expect to add even more accretive revenue-generating businesses to its portfolio. Beyond its new PPE contract, ALKM has deals in place to help develop and distribute several additional products, including Shmellins Caramel Sauce, Simple CBD Lemonades, New & Improved EVERx CBD Sports Waters, and Humble Harvest CBD Tea.

The company's entry into the CBD-based beverage sector has been a success, with its EVERx CBD sports drink attracting significant interest from the rapidly growing CBD consumer base. ALKM also plans to produce a new high-quality line of teas in collaboration with Quencha Tea, capitalizing upon consumer trends that are moving away from sodas and other sugary beverages. The excellent news is that its efforts to increase its distribution line benefits from the opening of ALKM’s newest production facility, which significantly increases the amount and types of products the company can produce at the same time.

Between its beverage lines, co-packing services, and other subsidiaries, ALKM is growing into an impressive company. And with ALKM’s new sources of revenue, its current share price may not fairly reflect even its intrinsic value.

Targeting Many Opportunities

In fact, with several of its long-term goals well past initial stages of development, investors may have an opportunity to still take advantage of ALKM’s undervaluation. Through its business strategy that emphasizes collaborative efforts, ALKM is now ideally positioned to capitalize on a wide variety of market opportunities. The company already has interests in consumer bottled water and other ready-to-drink goods, home pet products, horticulture and agriculture, and hand sanitizers. Better still, the diversity in that portfolio targets multiple industries creating multiple revenue streams.

Keep in mind, too, ALKM already has products in the market. It’s EVERx CBD Sports Water, which is a collaboration between Puration, Inc. (OTC Pink: PURA) and North American Cannabis Holdings, Inc. (USOTC: USMJ) is building impressive brand presence. And to reach additional consumers, EVERx CBD is introducing a new sugar-free variety, which will be produced alongside the company’s other beverage products at ALKM’s new manufacturing facility. The new factory is said to have doubled ALKM's manufacturing capacity, and with the products produced at its existing facility already penetrating markets, the enhanced production and distribution center will likely play a key role in expanding the company's ability to meet surging demand and extend its distribution reach.

Identifying Potentially Lucrative Trends and Opportunities

Still, the company's core strength is its ability to adapt to changing economic and industry trends and capitalize upon emerging opportunities. This was evidenced this month through the signing of a substantial deal for ALKM’s wholly owned subsidiary, Bell Food and Beverage, Inc. to produce 270,000 units of Oregon Blueberries for international food manufacturer Pacific Flavors International Inc. Indeed, businesses across the world have experienced supply chain issues due to the pandemic, and ALKM is showing they can maximize emerging opportunities through owned subsidiaries, and versatile manufacturing facilities.

One of ALKM’s smartest moves this year also exemplifies the company’s ability to adapt to and overcome new challenges. As the COVID-19 pandemic approached, ALKM decided to temporarily switch their focus to the production and supply of personal protective equipment such as hand sanitizer. That effort started out as a short term strategy to serve the critically unmet needs of hospitals and other facilities. As noted, while the company sold PPE products earlier this year, that shift most recently resulted in securing a $1 million purchase agreement to supply Aladyn Protection Systems, LLC for an assortment of PPE-related products.

Further, ALKM's entry into the personal protective equipment industry may prove to be a long-term market opportunity for the company. And with the manufacturing and shipment processes able to be integrated into its other co-packing services, the developing business could eventually deliver another substantial high-margin revenue stream to ALKM.

Looking Ahead In 2021

Undoubtedly, with its solid infrastructure and diversified portfolio, ALKM is well-positioned to take advantage of opportunities from the many different markets it serves. Better still, with its new logistics facility coming on line, ALKM’s ability to meet demand in national markets is in play. Moreover, not only will the new facility expedite the bottling and commercialization processes of its current beverage lines, but it will also support in the fulfillment of its existing deals with Aladyn Protection Systems and Pacific Flavors International, Inc.

The best news is that all of its revenue streams are creating both near and long-term value to the company. In fact, combining sales from its subsidiaries, ALKM expects to deliver $15 million this year, making its current market cap unreasonably low. But, with several fresh deals and an enhanced manufacturing facility, that valuation disconnect could soon be fixed.

 

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