VANCOUVER, BC / ACCESSWIRE / April 30, 2019 / EastWest Bioscience (the "Company" or "EastWest") (TSX-V: EAST) announces that on April 29, 2019 they signed an LOI with Azema Sciences Inc. ("Azema" or "Azema Sciences") to Joint Venture on a preferred supply and distribution agreement for bulk CBD and finished CBD products throughout the US and Globally.
EastWest is entering into a joint venture with Azema, securing for EastWest first rights on Azema's output of bulk CBD and finished CBD products manufactured, and which are ready for sale in the USA and globally. EastWest Science USA ("EastWest USA"), EastWest's US operating division, will be the preferred distributor for Azema's finished goods. These finished products will include CBD creams, tinctures and salves which are products not currently in EastWest's catalogue. Additionally, EastWest will have first right of refusal to all potential opportunities relating to Azema's Kentucky based CBD processing facility.
Situated on a wholly-owned 6-acre property, which is currently home to its 18,000sf CBD processing facility, Azema Sciences is one of approximately 110 licensed Hemp processors in Kentucky and is a manufacturer of Hemp derived CBD derivatives and CBD infused Consumer Packaged Goods. Under the joint venture, EastWest USA will have exclusive access to 9000sf of the facility to build out EastWest's own Nutraceutical manufacturing operations and to process CBD under Azema's license. The facility is equipped with ample power and utility supply, multiple loading sites for large scale logistics, is zoned appropriately, and is available immediately to EastWest.
With operations based in Lebanon, Kentucky, Azema Sciences is situated in the heart of Kentucky's Hemp country, with an estimated 80% of the state's CBD Hemp farming within 100 miles of the facility. Kentucky's licensed Hemp production grew to more than 42,000 open air acres and around 66 greenhouse acres in 2019. This growth is due mainly to strong commercial support from the Kentucky Department of Agriculture, being one of the first states to embrace pilot hemp programs allowing tobacco farmers to transition to hemp, and the direct political support of state legislators, Senate Majority Leader Mitch McConnell who introduced the hemp Farming Act of 2018 that was contained within the 2018 Farm Bill.
EastWest is focused and actively working on consumer products in anticipation of widespread approval of CBD product availability to exploit its extensive catalogue of products for formulation with CBD where it is beneficial. The partnership with Azema will ensure that EastWest will have an ongoing supply of CBD to fulfill its manufacturing requirements for the US market.
"Azema Sciences is scaling up to be a mass producer of CBD isolate for consumer product development which directly complements EastWest's line of finished consumer goods and manufacturing. The value to both companies from this joint venture is clear and mutual," states Rodney Gelineau, CEO of EastWest Bioscience. "The collaborative nature of this agreement ensures long term benefits to both parties."
"Partnering with a manufacturer of CBD in the heart of Kentucky Hemp country is a major step toward achieving our fully integrated target in the US, and vital to delivering our four lines of consumer products, nutraceuticals, pet products, functional foods and health and beauty products to the biggest CBD market in the world."
A period of negotiation and exchange of information is required to finalize terms and the definitive and binding Joint Venture Agreement will be complete on or about May 31, 2019.
About EastWest Bioscience Group
EastWest Bioscience is a vertically integrated wellness company with the infrastructure to become a global giant in the Hemp & CBD consumer health market. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium hemp products. EastWest is strategically positioned in mainstream consumer markets with wholistic natural products and has developed distribution channels into mainstream stores and markets in Canada. The Company has a Health Canada licensed, GMP (Good Manufacturing Practices) certified manufacturing facility and produces premium brands offering natural products for a preventive care lifestyle. EastWest consumer product lines are divided into four distinct brands: 1) Natural Advancement - natural biopharmaceutical health supplements; 2) Earth's Menu - all-natural hemp superfoods; 3) Natural Pet Science - pet food and pet supplements; and 4) ChanvreHemp - all-natural health and beauty products. The organization will continue to focus on ongoing development of innovative, hemp-based consumer products through advanced science with clean, natural ingredients to complement its current product offerings.
About Azema Sciences
Azema Sciences is a Canadian company specifically formed as a manufacturer of CBD with operational headquarters in Lebanon, Kentucky, USA. Specializing in the manufacture of bulk CBD and CBD infused consumer goods, Azema has the resources, location and access to premium grade Hemp to produce premium grade derivatives. Aligned with Kentucky Hemp farmers and licensed by the Kentucky Department of Agriculture as a Hemp Processor, Azema is strategically positioned to feed the growing demand for CBD and other Hemp derivatives.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: EastWest Bioscience Inc.