EastWest Bioscience 80% Ethyl Alcohol Hand Sanitizer Receives FDA Approval
Thursday, May 28, 2020 10:30 AM
PENTICTON, BC / ACCESSWIRE / May 28, 2020 / EastWest Bioscience's ("EastWest") (TSXV:EAST) manufacturing subsidiary, Orchard Vale Naturals ("Orchard Vale" or the "Company"), has received U.S. Food and Drug Administration ("FDA") approval for its 80% ethyl alcohol hand sanitizer liquid spray. This will allow Orchard Vale to distribute its hand sanitizer to the American market, adding revenue streams to its US operation.
The 80% Ethyl Alcohol provides the Company significant latitude in its customer base. Doctors' Offices, Dental Offices and other medical practitioners require a 80% content in order to meet its requirements.
Manufacturing has started this week in the Company's 34,000 Sq Ft Penticton, BC facility with additional manufacturing being conducted in Ontario. The initial manufacturing run of 50,000 litres will be followed up shortly with additional production later in June.
In Canada, the Company has received pre-orders from its National Chain of Sangsters stores along with its existing independent distribution network in Canada.
The Company will now begin marketing its hand sanitizer in the United States and will utilize Azema Sciences' ("Azema") Kentucky, USA facility as warehousing and logistic central for its US distribution.
"Orchard Vale Naturals is experiencing strong momentum in its supplement manufacturing in Penticton and is now introducing new revenue streams which will take advantage of the Company's existing assets. Our focus is in increasing top-line sales and aggressively cutting costs to bring us closer towards our goal of positive EBITDA later in 2020," says Rodney Gelineau, EastWest Chief Executive Officer.
The Company also announces, subject to its stock option plan and subject to approval by regulatory authorities, the grant of 6,000,000 stock options to certain directors, officers, employees and consultants issued pursuant to the Company's stock option plan. The options vest over a 3 year period, exercisable at a price of $0.05 per share and expire in May 2023. The shares issuable upon exercise of the options may not be traded for 4 months and one day from the date of grant.
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 health and hemp products. EastWest currently has more than 200+ NPN's in its stable of products.
EastWest's 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.
In Canada, EastWest has a 34,000 Sq. Ft, Health Canada-licensed, GMP (Good Manufacturing Practices) - certified manufacturing facility and produces premium nutraceutical brands, offering natural products for a preventive care lifestyle.
In the USA, EastWest Science USA Inc. ("Eastwest USA") has a joint venture with Azema Sciences Inc. ("Azema"), a company related by common management and directors, 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 USA, EastWest's US operating division, will be the preferred distributor for Azema's finished goods, 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. EastWest currently has TSX approval for sale of its consumer products in 21 US States.
The joint venture provides EastWest USA with continuous supply of premium CBD, as it is developing value added CBD consumer goods for the US market for the pet, skin care, functional food and supplement categories. The joint venture will also generate additional revenue streams: EastWest USA will retail CBD material manufactured by the joint venture and market the co-packing/bottling services provided by the joint venture.
Situated on a wholly owned 6-acre property, which is currently home to its 18,000 sf CBD processing facility, Azema Sciences is one of approximately 110 licensed Hemp processors in Kentucky. The joint venture specifies exclusive access for EastWest USA to 9,000 square feet of Azema's facility, which will co-locate EastWest USA with Azema's CBD processing, tincture bottling and logistics operations. Co-locating provides EastWest USA with the real estate and resources to build out its own nutraceutical manufacturing adjacent to Azema's CBD operations, providing significant efficiencies to its logistics and warehousing of product.
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 Bioscience has used its initial capital to acquire all of the necessary assets to capitalize on manufacturing aspects and focus on the finished products of the fully integrated model. The Company continues to focus on manufacturing consumer products for our end customers, manufacturing for private label customers in the US, as well as providing co-packing services to small and independent wholesalers and retailers. The Company will continue to focus its energy on cost control and revenue generation.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website: www.eastwestbioscience.com
Contact: 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.
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SOURCE: EastWest Bioscience Inc.