VANCOUVER, BC / ACCESSWIRE / May 15, 2019 / EastWest Bioscience (the "Company"or "EastWest") (TSX.V: EAST) announces that on May 13, 2019 they signed a Letter of Intent to joint venture with Continental Agro Trade Corporation ("Continental") to secure a ready stockpile of Hemp flower containing CBD for EastWest's production of high-grade CBD isolate. This stockpiled Hemp supply will be ready for processing into CBD isolate within Eastwest's Penticton Facility immediately upon approval for Eastwest's Cannabis Processor license.
Continental will be joint venturing to provide harvested hemp flower containing CBD exclusively to EastWest. The strategic alliance further solidifies EastWest's vertically integrated seed-to-sale strategy and secures the Company's supply of hemp flower to produce CBD isolate, a required ingredient for the CBD consumer products under development.
On October 17, 2018, the Cannabis Act came into force which stated that the legal sale of edible cannabis, cannabis extracts, and cannabis topicals will be permitted no later than October 17, 2019. It curently appears market demand for CBD is going to be higher than anticipated and media suggests supply will be limited in October when edible cannabis, cannabis extracts and cannabis topicals will be permitted. In anticipation of retail stores being able to market CBD products, EastWest is preparing its retail chain Sangster's to carry a variety of CBD products under the Sangster's brand as well as EastWest's own house branded products.
The Sangster's acquisition brought to the Company an extensive catalogue of NPNs (Natural Product Numbers) and valuable consumer behavior data. Combining this with the Company's current CBD product development in the US, its ability to manufacture short runs of new formulations in Canada through Orchard Vale Naturals, EastWest is well positioned to offer consumer CBD products that have been market tested in the US and manufactured in Canada.
This joint venture mirrors the vertical strategy the Company is taking in the USA, by securing supply of high-quality CBD hemp flower, extracting CBD derivatives and manufacturing CBD consumer products within its own group of companies.
"Together with EastWest's brands, manufacturing and US operations, securing this agreement with Continental for our Canadian CBD processing plans is a big win for the Company,"states Rodney Gelineau, CEO of EastWest, "It is a definite win for the company and moves us further toward CBD production in Penticton, BC."
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 June 30, 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 Continental Agro-Trade Corporation
Continental Agro Trade Corporation, located in Abbotsford BC, holds an Industrial Hemp Licensed and contracts farmers to grow, harvest, and sell hemp for exclusive acquisition by companies licensed to purchase and process hemp products including CBD. Continental currently sub licenses farms located Western Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
"Rodney Gelineau"
Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website: www.eastwestbioscience.com
Contact: Nicholas Vincent - Investor Relations on 1-800-409-1930 or [email protected].
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 Group