Isodiol further aligns its business strategies
around core competencies and expands its sales force globally to
capitalize on the untapped market for its registered Active
Pharmaceutical Ingredient (API), CBD extracts, and contract
manufacturing capabilities.
Isodiol International Inc.
(
CSE:
ISOL)
(
OTCQB:
ISOLF)
(
FSE: LB6A.F)
(the “Company” or “Isodiol”), a global CBD
innovator and market leader, announces plans to pursue a focused
business strategy designed to improve its market leadership and
fully leverage the potential of recent acquisitions.
“Over the past 6 months, we made significant
investments that built a diverse foundation for the Company through
acquisitions, and we are now shifting our focus to optimally
operating our various business segments. Specifically, we are
leveraging these recent acquisitions to scale up and maximize the
growth of the Company, while taking advantage of developing
opportunities that are arising from positive changes in regulations
that affect hemp and CBD around the globe,” said the Company’s CEO,
Marcos Agramont.
To give effect to these initiatives, the
Company is sharpening its focus on three core business strategies
designed to increase shareholder value through primary Business to
Business (B2B) revenues and secondary retail revenues.
Nutraceutical, Pharmaceutical, and Clinical
Supply of CBD Ingredients
The Company is an industry leader in CBD,
supplying the market with CBD extracts in four
categories:
- NUTRA99: A nutraceutical-grade CBD isolate
derived from US Farm Bill Compliant hemp.
- ISO99: A proprietary extracted
nutraceutical-grade CBD isolate derived from EU organic certified
hemp.
- Spectreus: A full-spectrum hemp oil extract
derived from US Farm Bill Compliant hemp.
- BSPG API: An MHRA (The Medicines and
Healthcare Regulatory Agency) registered Active Pharmaceutical
Ingredient (API) for use in clinical trials and for formulation of
Finished Pharmaceutical Products (FPPs).
As of today, the Company is able to sell its API
as a regulatorily compliant import into Canada to Licensed Dealers
(LDs) and for use in the manufacture of approved consumer products
by Licensed Producers (LPs). This is a significant accomplishment
that places the Company at the forefront of the CBD market in
Canada, which is reflected by the multiple pending supply
agreements with industry leading LPs.
The recent acquisitions of Farmtiva, LLC and
Round Mountain Technologies, LLC and the Company’s previously
announced expansion into China are intended to create a unique
captive supply of select strains of biomass in order to feed our
current and future extraction and refining facilities
globally. The Company believes these efforts will further
manufacturing its global expansion based on a strong supply
infrastructure. In line with the expansion of its supply
capabilities, the company is adding new sales forces globally that
are designed to capitalize on the untapped market for API sales and
Finished Pharmaceutical Products (FPP), as well as the sponsorship
of various clinical research studies and trials in multiple
countries.
The Company is allocating additional resources
to its ongoing global licensing and distribution efforts that, to
date, include the anticipated 3Q 2018 approval of its subsidiary,
Canadian National Pharma Group, Inc., as a certified Licensed
Dealer (LD) by Health Canada, which will open new import, export,
manufacturing, and distribution opportunities for the Company in
Canada and beyond. The Company is supplying its BSPG API for
clinical studies and trials in Brazil and working toward
distribution and marketing approvals that can be replicated
globally.
This ingredient supply business segment is
intended to be a major growth opportunity for the Company going
forward for use in multiple forms of CBD products. The
Company believes it is the preeminent pure, natural CBD molecule
supplier in the industry and will continue to supply the key active
ingredient for the highest quality consumer brands and Finished
Pharmaceutical Products in the industry.
Contract Manufacturing of Consumer Products
Containing CBD Ingredients
The Company previously focused on the
development of brands for the purpose of showcasing the potential
of its CBD ingredients and its contract manufacturing
capabilities. As a manufacturer of CBD-based consumer
products, the Company intends to increase its production capacity
in this core competency and reduce its efforts at operating brands
long term. The Company will continue to incubate and develop
brands as R&D endeavors, evaluate their potential for market
success at scale, and determine whether to license or dedicate
long-term resources to the brand. In each case, the Company
intends to retain the contract manufacturing rights for these
brands, provide its partners with scale production, and capture the
B2B revenue stream.
Isodiol’s newly formed subsidiary known as
IsoBev, Inc. controls the Azure Bottling and Culinary Coffee
manufacturing facilities. Through these facilities, the
Company can formulate infused water products both internally and as
private labels with capacity of over 5 million bottles of water
monthly. The Company also is well positioned in the
speciality coffee and tea market, and it can private label over 100
varieties of coffees and teas utilizing exclusive ingredient
contracts with farms in Brazil and Columbia. Each of these
products can be infused with hemp extracts and CBD. IsoBev is
exploring additional expansion plans and partnerships for this
division and is developing opportunities to expand its beverage
product offerings into both alcoholic and non-alcoholic hemp-based
beers and other beverages.
Additional manufacturing efforts include the
Company’s expansion of operations at the Bradley’s Biosciences
facilities in Phoenix, Arizona. With this expansion,
Bradley’s will have state of the art clean rooms and manufacturing
capabilities to handle increased production and demand for contract
manufacturing of CBD-based e-liquids and FDA-registered nicotine
e-liquids. Bradley’s will begin manufacturing Kure’s Vape Juice Bar
Blends and Salts on Tap, which will increase the company’s
profitability.
In conjunction with the Company’s redoubled
focus in contract manufacturing, Isodiol’s Board of Directors
determined to cancel and unwind the prior announced transaction
with BeTru Organics, Inc. The Company has agreed to continue
contract manufacturing products for BeTru and intends to retain
that B2B revenue stream.
With the unwinding of the BeTru transaction,
Isodiol is finalizing its innovative marketing strategy with the
kathy ireland® brand of health and wellness products pursuant to
the Company’s licensing agreement with Level Brands Inc. (NYSE
American: LEVB), and the Company intends to launch
this product line with sales commencing the week of July 23,
2018.
Total Vertical Integration of Key Revenue
Streams
Isodiol executed on its pre-existing business
plan to establish total vertical integration, which culminated in
the acquisition of its own retail store platform and helps ensure
that the Company’s key innovations make it to market. The
acquisition of Kure and the expansion of the CBD
store-within-a-store concept inside the Kure retail locations
demonstrates the Company is well underway to becoming one of the
best positioned companies in the industry to conduct R&D from
seed to marketplace. With this unique positioning and the CBD
sector developing at a pace that is projected to outperform
recreational and medical cannabis, the Company believes it can
scale up and capitalize on market penetration quicker than its
competitors.
At the cultivation level, the Company will
continue to pursue new hemp farming and manufacturing capabilities
throughout the world, which is intended to meet commercial demand
and regulatory requirements and further expand operations and
revenue opportunities.
General Updates
As previously announced, the Company will focus
on the manufacture of CBD derived from hemp versus alternative
sources such as novel hop strains. This decision is due to recent
favorable legislative and regulatory developments legalizing hemp,
new agricultural opportunities that are making hemp commercially
more affordable, and clinical data that is providing pharmaceutical
certainty about the health benefits and safety of hemp-derived
CBD. This strategic shift includes termination of the
Company’s licensing arrangement with Peak Health. The
Company’s strategy concerning hemp was further affirmed by
yesterday’s announcement that the entirety of Senator McConnell’s
Hemp Farming Act of 2018 was included in the Senate’s passage of
the Agriculture Improvement Act of 2018 (Farm Bill).
“Going forward, the Company will focus on its
hemp-derived CBD ingredients until such time as hops become a
commercially viable source of CBD isolate. Previously, the
future of CBD derived from hemp and cannabis was uncertain due to
regulatory challenges. However, as regulators and medical
practitioners throughout the world embrace hemp, the Company finds
no reason to deviate from its roots and foothold in today’s
expanding marketplace,” said Agramont.
Agramont further stated, “Isodiol has been
fortunate to have business opportunities in many different aspects
of the CBD market and stay in front of trends and new
developments. Now it is incumbent upon the Company to focus
on its core competencies and opportunities and make a push into the
mainstream. We believe CBD has a benefit for every person,
and we intend to make those benefits a reality by powering every
product category in the market.”
In conjunction with this strategic refocusing,
the Company welcomes its current CEO, Marcos Agramont, into the
role of President of the Company’s primary operating subsidiary,
Iso International LLC (“Iso”), effective June 1, 2018. That
position previously was held by Iso’s outgoing President, Troy
Nihart.
Isodiol is pleased to announce that its common
stock (OTCQB:ISOLF) was up-listed
in the U.S. securities market from the Pinksheets to OTCQB by OTC
Markets Group Inc. as of June 2018.
For more information on Isodiol, please visit
www.isodiol.com
About Isodiol International
Inc.
Isodiol International Inc. is
the market leader in pharmaceutical grade pure, natural CBD and the
industry leader in the manufacturing and development of CBD
consumer products.
Isodiol is the pioneer of many firsts in the CBD
industry, including the commercialization of 99%+ pure, natural
isolated CBD, micro-encapsulations, and nanotechnology for the
highest quality consumable and topical skin care products. Most
recently, the Company received approval for its CBD designated as
an Active Pharmaceutical Ingredient for use in Finished
Pharmaceutical Products, as was announced on April 26, 2018.
Isodiol’s growth strategy includes the
development of over-the-counter and pharmaceutical drugs and
continued international expansion into Latin America, Asia, and
Europe.
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ON BEHALF OF THE BOARDMarcos
Agramont, CEO & Director
INVESTOR
RELATIONS:Ir@isodiol.comwww.isodiol.com
Forward-Looking Information:
This news release contains "forward-looking information" within the
meaning of applicable securities laws relating to statements
regarding the Company's business, products and future the Company’s
business, its product offerings and plans for sales and marketing.
Although the Company believes that the expectations reflected in
the forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. Readers
are cautioned not to place undue reliance on forward-looking
information. Such forward-looking statements are subject to risks
and uncertainties that may cause actual results, performance and
developments to differ materially from those contemplated by these
statements depending on, among other things, the risks that the
Company's products and plan will vary from those stated in this
news release and the Company may not be able to carry out its
business plans as expected. Except as required by law, the Company
expressly disclaims any obligation and does not intend, to update
any forward-looking statements or forward-looking information in
this news release. Although the Company believes that the
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will
prove to be correct and makes no reference to profitability based
on sales reported. The statements in this news release are made as
of the date of this release.
The CSE has not reviewed, approved or disapproved
the content of this press release.