New joint venture, Emerald Health
Naturals, secures exclusive Canadian rights to sell proprietary
non-cannabis health products that support the human endocannabinoid
system
Emerald Health Therapeutics Inc. (EHT) (TSX-V:EMH) (OTCQX:EMHTF)
(Frankfurt:TBD) launched today a multi-pronged program to market
and sell a proprietary, award-winning non-cannabis line of
endocannabinoid-supporting nutritional products in Canadian
grocery, natural health product, and pharmacy stores. EHT has
entered into a 51:49 joint venture, to be called Emerald Health
Naturals (EHN), with San Diego-based Emerald Health Bioceuticals,
Inc. (EHB). EHN has secured exclusive Canadian marketing and sales
rights to EHB’s unique nutritional supplements, which use
non-cannabis, non-psychoactive plant-based ingredients to provide
potentially beneficial support to the body’s endocannabinoid
system.
In this initiative, EHN has agreed to acquire
the assets of GAB Innovations (GAB) and has granted non-exclusive
sub-distribution rights to VANC Pharmaceuticals (VANC). Both GAB
and VANC have established networks and a history of sales success
in the natural health product and pharmacy channels. Gaetano
Morello, ND, the founder of GAB, has been appointed CEO of EHN.
Market research commissioned by EHT identified
that approximately 6 of 10 current legal cannabis users also use
natural health products. This strong consumer overlap between the
two markets creates a unique opportunity for EHT to establish its
health brand and begin sales of endocannabinoid-supporting products
in natural health product channels. These channels are not expected
to be authorized to sell cannabis under the anticipated Canadian
federal cannabis regulations for recreational use expected in 2018.
If these channels are approved in the future, EHT would be well
positioned to leverage its brand and channel presence to introduce
its cannabis-based products into these channels.
“As familiar and trusted sources of health
products, we believe that pharmacy, natural health product, and
grocery stores will become important channels for products that
beneficially affect the endocannabinoid system,” said Chris Wagner,
CEO of EHT. “This acclaimed non-cannabis product line gives us
first-mover advantage in these channels and positioning if they are
approved to sell cannabis-based products in the future. These
channels would also be ideal for new products we are developing
around advancements in formulation, delivery, and dosing.”
“We were recently honored with the Best New
Supplement Award at one of the largest natural product trade shows,
a testament to the quality and innovativeness of our product line,”
noted Jade Beutler, CEO of EHB. “We look forward to introducing
these natural health products to the Canadian marketplace, which
along with other legal cannabis markets is showing tremendous
appetite for non-psychoactive products that may provide wellness
benefits.”
EHT is leveraging multiple relationships to
launch this initiative:
- Formed a joint venture with San Diego-based Emerald
Health Bioceuticals. EHT will receive 51% of the shares of
EHN in exchange for an investment of $5,000,000. EHB will receive
49% of the shares of EHN in exchange for granting the joint venture
exclusive Canadian distribution rights with respect to EHB’s
product line.
EHB developed and launched its over-the-counter
product line of cannabis-free nutritional supplements in the U.S.
The products feature PhytoCann-Complex™, EHB’s proprietary
formulation designed to support the body’s endocannabinoid system
and its central role in the orchestration, maintenance, and balance
of health and wellbeing. The products include Endo SleepTM, Endo
InflameTM, Endo BrainTM, Endo BlissTM, Endo CalmTM.
EHB’s management and scientific advisory board
(SAB) comprise experts in natural health medicine, product
development, and marketing. They have decades of experience working
with active ingredients, desired formulations, delivery and dosage
forms, and have access to source ingredients and industrial-scale,
pharmaceutical quality manufacturing. For example, the SAB includes
Michael T. Murray, ND, a leading authority on natural medicine, and
Giovanni Appendino, PhD, a thought leader who has researched
cannabis and cannabinoids for over 15 years. CEO Jade Beutler
and the EHB leadership team have built significant, commercially
successful natural health product brands.
EHB is a 70%-owned subsidiary of Emerald Health
Sciences Inc. (Sciences), which also owns approximately 37% of the
issued and outstanding shares of EHT. There will be no change in
the share ownership of EHT by Sciences as a result of the joint
venture. The joint venture with EHB was approved by the independent
directors of EHT.
- Appointed Gaetano Morello, ND, as CEO of EHN.
Dr. Morello is a clinician at the Complex Chronic Disease Program
at BC Women’s Hospital in Vancouver and a private practice in West
Vancouver. He treats complex chronic diseases including
fibromyalgia, chronic fatigue syndrome, myalgic encephalomyelitis,
and chronic lyme disease. He has seen first-hand not only the
benefits of authorized cannabis on this population but also other
plant extracts targeting the endocannabinoid system. He serves on
the Quality Assurance Committee for the College of Naturopathic
Physicians of British Columbia and other health and medical panels.
Dr. Morello has a B.Sc. in Cell Biology/Nutrition from the
University of British Columbia and a Doctorate in Naturopathic
Medicine from Bastyr University.
- EHN has acquired certain assets of GAB, a
company founded by Dr. Morello that has been a distributor of
nutritional supplements into natural health channels since 1996.
GAB has represented some of North America’s leading manufacturers
of natural health supplements including Enzymatic Therapy, a
leading manufacturer of natural supplements; Thorne Research, a
leading physician brand in both Canada and the U.S.; as well as
Terry Naturally, Wisdom Sweet Leaf, and others. GAB has represented
hundreds of SKUs to a network of over 2,000 health food and
pharmacy stores across the country. GAB recently sold its
proprietary Sealicious® omega-3 product line to Natural Factors,
one of Canada’s largest producers of natural supplements.
- Granted VANC Pharmaceuticals Inc. (TSX-V:VANC)
(OTCQB:NUVPF) a non-exclusive right to distribute EHN’s
endocannabinoid-supporting products to Canadian pharmacies. VANC
has a well-established sales team and key relationships with
Canada’s largest pharmaceutical wholesalers as well as pharmacy and
grocery chains. VANC will concurrently issue to EHN 3,030,303
warrants to purchase shares of VANC.
“We believe the sales potential for cannabis
products in pharmacies is significant and providing these products
through the pharmacy channel would be a natural fit as pharmacists
play a key role in promoting public safety through education and
awareness. We will take a lead role to develop this channel with
Emerald Health Naturals, starting with these cannabis-free
endocannabinoid-supporting products,” said Bob Rai, CEO and
Director of VANC.
“Our mission is to broadly realize the medicinal
benefits of a range of products that interact with the
endocannabinoid system, which plays a vital role in modulating key
functions of the human body. Emerald Health Bioceuticals and its
internationally recognized advisors have created a unique product
line that we believe can assist the endocannabinoid system in its
role,” said Dr. Morello, CEO of EHN. “As a practitioner of natural
medicine for over 26 years, and having assessed hundreds of
patients using legally authorized cannabis, I believe Canada’s
steps to legalize recreational cannabis will be beneficial for
patients with many medical conditions. I am excited about the
potential of EHT’s cannabis and non-cannabis products, and to take
on a role to help realize the medicinal and commercial potential of
these products.”
Completion of the transactions set out in this
press release are subject to the approval of the TSX Venture
Exchange.
Join us on our journey of making lives better through
cannabis science.
About the
Endocannabinoid System (ECS)
The ECS is a biological system with a vital role
in regulating human health and disease. A lack of endocannabinoid
“tone” may have adverse consequences in various physiological
processes. The ECS is activated by endocannabinoids produced
naturally in the body, but also by cannabis or non-cannabis
plant-based cannabinoids that mimic those produced in the body.
Phyto-CannTM Complex is formulated with non-cannabis herbal and
botanical cannabinoids that may favorably impact the ECS, along
with health and wellness.
About VANC Pharmaceuticals
Inc.
VANC Pharmaceuticals aims to become the partner
of choice for forward-thinking pharmacies across Canada. With an
established sales force, distribution network, and team of highly
experienced professionals in pharmacy, point-of-care testing and
health technology, VANC’s goal is to provide pharmacists with
innovative, value-added products and services to expand their scope
of practice and support their evolving role as front-line
healthcare providers.
About Emerald Health
Therapeutics
Emerald Health Therapeutics (TSX-V:EMH) (OTCQX:EMHTF)
(Frankfurt:TBD) is a Licensed Producer under Canada’s Access to
Cannabis for Medical Purposes Regulations and produces and sells
dried cannabis and cannabis oil for medical purposes. It is adding
a 500,000 ft2 greenhouse in Metro Vancouver to serve the
anticipated legal Canadian adult-use cannabis market starting in
2018. Emerald owns 50% of a joint venture with Village Farms
International, Inc. that is converting an existing 1.1 million ft2
greenhouse in Delta, BC to grow cannabis. Emerald’s team is highly
experienced in life sciences, product development and large-scale
agribusiness. Emerald Health Therapeutics and Emerald Health
Bioceuticals are both part of the Emerald Health group, which
includes multiple companies focused on developing cannabis and
cannabinoid products with potential wellness and medical
benefits.
Please visit www.emeraldhealth.ca for more
information or contact:
Rob Hill |
|
Ray Lagace |
CFO |
|
Investor Relations
Manager |
(800) 757 3536 Ext.
#5 |
|
(800) 757 3536 Ext.
#5 |
|
|
invest@emeraldhealth.ca |
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 Note Regarding Forward-Looking
Statements: Certain statements made in this press release that are
not historical facts are forward-looking statements and are subject
to important risks, uncertainties and assumptions, both general and
specific, which give rise to the possibility that actual results or
events could differ materially from our expectations expressed in
or implied by such forward-looking statements. Such statements
include completion of the joint venture; establishing a brand;
sales of non-cannabis products; development of sales channels;
expansion of permitted sales of cannabis; leveraging of
distribution channels; development of new products; the benefits
and effects of certain products.
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statement will materialize and readers are cautioned not to place
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forward-looking statements involve risks and uncertainties related
to, among other things, failure to obtain regulatory approvals;
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sale activities; results of scientific research; regulatory
changes; availability of products; changes in prices and costs;
demand for products; as well as the risk factors described in the
Company’s annual information form and other regulatory filings. The
forward-looking statements contained in this press release
represent our expectations as of the date hereof. Forward-looking
statements are presented for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such
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undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
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