VANCOUVER, BC / ACCESSWIRE / June 20, 2019 / EastWest Bioscience (the "Company" or "EastWest") (TSX.V: EAST) announces that, further to its News Release on April 30th, 2019 that the Company has signed a Definitive Agreement with Azema Sciences Inc. ("Azema" or "Azema Sciences") to Joint Venture on a preferred supply and distribution agreement, specifically for the supply of bulk CBD and finished CBD products, and distribution 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 which are ready for sale in the USA and globally. EastWest Science USA ("EastWest USA"), EastWest's US operating division, will be the preferred purchaser and distributor for Azema's finished goods. These finished products will include CBD creams, tinctures and salves, which are complementary products to EastWest's existing 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. The Joint Venture specifies exclusive access for EastWest USA to 9000sf 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.
"Integrating our operations tightly with Azema's makes sense, as it will provide EastWest USA with many benefits, such as flexibility of raw material supply and direct shipping to retail wholesale distributors. While also ensuring a stable source of CBD material necessary for EastWest USA's expected rapid expansion." states Rodney Gelineau, CEO of EastWest Bioscience.
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.
"Partnering with Azema Sciences will provide EastWest a significant opportunity to take its data from its Canadian health food customers and allow Eastwest the unique and early opportunity to take the benefits from CBD and integrate it in unique products," continues Gelineau, "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."
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. EastWest and Benchmark Botanicals (BBT-CSE) also have a Joint Venture Intent to accelerate acquisition of Processor, Analytical and Research and Development licenses under the Cannabis Act in EastWest's Penticton facility. These three classes of the Cannabis Act license will allow Benchmark and EastWest to build out an extensive extraction, laboratory, and research facility at EastWest's Health Canada Certified facility.
In the USA, EastWest USA has a Joint Venture with Azema Sciences, 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. EastWest currently has TSX Approval for sale of its consumer products in 21 US States.
EastWest's international expansion continues with reach into important key markets in New Zealand, Australia, and Asia through a distributor agreement with New Zealand Hemp Brokers. Headquartered in Rotorua, New Zealand, NZ Hemp Brokers have quickly grown to become one of the country's most trusted industrial hemp wholesalers, and New Zealand's only import/export broker specialising in hemp products. NZ Hemp Brokers is licensed by the NZ Ministry of Health to grow, trade in and process industrial hemp, are registered brokers and certified in hemp medicine by the NZ Hemp Foundation.
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
"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.
Neither 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.
SOURCE: EastWest Bioscience Group