AgraFlora Organics Receives Purchase Order from Asian CBD Distribution Joint Venture
October 30 2019 - 3:05AM
AgraFlora Organics International Inc.
(“
AgraFlora” or the
“
Company”) (
CSE: AGRA) (Frankfurt:
PU31) (OTCPK: AGFAF), a growth oriented and diversified
international cannabis company, is pleased to announce the Company
has received its inaugural purchase order (the “PO”) from its 50
per-cent owned joint venture, Eurasia Infused Cosmetics Inc.
(“Eurasia Infused” or the “JV”).
Eurasia Infused, by way of a commercial concession with CBD
Group Asia Ltd. (“CBD Group Asia”), controls distribution
agreements for CBD and organic cannabis sativa seed oil infused
consumer packaged goods (“CPGs”), for the territories of People's
Republic of China, as well as the Hong Kong special administrative
region. This distribution agreement extends to AgraFlora's existing
portfolio of CBD-infused and organic cannabis sativa seed oil
derived product suite.
Hong Kong domiciled CBD Group Asia Ltd., has previously
distributed premium Canadian CPGs into China's largest retail
chains and C-stores, including RT-Mart International Ltd. (“RT
Mart”) and Carrefour SA. RT Mart alone operates over 484 retail
locations covering 233 cities and 29 provinces in China and
generated $20 billion in sales in 2018.
On October 25, 2019, the JV issued AgraFlora an initial purchase
order to supply its organic cannabis sativa seed oil infused face
serum and lip balm. This initial purchase order will secure
high-visibility Asia Pacific shelf space for AgraFlora's existing
CPG product offering.
According to a report by Grand View Research, Inc., the Chinese
CBD category is estimated to potentially be worth up to $15 billion
by the year 20241. Additionally, the global CBD skin care
marketplace, including the Asia Pacific regions, is expected
to reach $1.7 billion by 2025, expanding at a CAGR
of 32.9% over the forecast period.
Over the past 60 calendar days, Agraflora and CBD Group Asia
have collaborated on a variety of product customization, branding
and distribution initiatives, with the objective of tailoring the
Company's product offering for rapid uptake into the Asian CPG
markets. The JV’s continuing CPG customization and distribution
deliverables, culminating with this initial PO, include the
following:
- Brand testing, focus groups and data mining initiatives;
- Successful YuShop Global (HK) Ltd. product listings for
CBD-infused CPGs:
- Active user footprint of over 500 million consumers; and
- Permits immediate access to China/Hong Kong's burgeoning
CBD-infused CPG marketplaces;
- National CPG listings, leveraging CBD Group Asia's high-traffic
distribution channels,=including the introduction of high-traffic
retail channel partners, as well as 1,500 luxury health spas;
- Organic cannabis sativa certificate of analysis (“COA”)
authorization;
- Product and packaging customization;
- Development of a full-spectrum CBD facial serum, infused with
hemp root oil;
- Initial three SKUs fully customized/import certified for the
Chinese/Hong Kong marketplaces packaged for shipment from the
Company's co-packer to fulfill POs;
- Architecture of a network of Chinese Canutra/Whole Hemp
Health-branded pop-up shops, further expanding the Company's retail
footprint and brand presence in an economical and contemporary
manner; and
- Integration into CBD Group Asia's proprietary direct to
customer Asian sales WeChat platform providing unencumbered daily
access to 1.08 billion current WeChat customers.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora
stated: “Asia is a largely untapped CBD marketplace and represents
the next enormous market opportunity to benefit from the global
secular trend towards the legalisation of cannabis. In an
expeditious manner our JV with CBD Group Asia has allowed us to
penetrate this growth-based marketplace with our existing suite of
premium cannabinoid-infused CPGs and realize top line
revenues.”
The JV is positioned to capitalize on current and future market
trends in the rapidly expanding global cannabinoid-infused CPG
space. Existing turnkey cultivation/manufacturing capabilities
further bolster the Eurasia Infused’s ability to swiftly expand the
breadth of its current product line to more than 40 SKUs. Eurasia
Infused is finalizing the development phase of a suite of
innovative SKUs, specifically tailored of the Asia Pacific theatre,
including:
- Organic infused cosmetics with anti-aging properties;
- CBD tinctures;
- CBD capsules; and
- CBD-infused candies.
The JV will work to integrate Cannessence, AgraFlora’s recently
announced terpene-infused, organic cannabis sativa seed oil
formulation, into its distribution channels. Cannessence when
coupled with organic cannabis sativa seed oil, will boast a
uniquely formulated terpene profile resulting in amplification of
the activation of the endocannabinoid system (the “ECS”),
optimization of cannabinoid uptake and standardization of
pharmacological effects within the ECS of both humans and pets.
Eurasia Infused anticipates that it will market its Cannessence
product portfolio in capsule, topical and tincture format and aims
to position Cannessence within the marketplace as an
over-the-counter (OTC) substitute to conventional CBD.
____________1
https://www.healtheuropa.eu/asia-pacific-cannabis-markets/93798/
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Services Canada Inc. and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company is also retrofitting a 51,500-square-foot good
manufacturing practice (“GMP”) edibles manufacturing facility in
Winnipeg, Manitoba. AgraFlora has a successful record of creating
shareholder value and is actively pursuing other opportunities
within the cannabis industry. For more information please visit:
www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 398-3147
For additional information: |
|
|
|
AgraFlora Organics International Inc. Tim
McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy Scalabrini, Maricom Inc.E:
rs@maricom.ca T: (888) 585-MARI |
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Statement
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news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
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the business plans for AgraFlora Organics described in this news
release will come into effect on the terms or time frame described
herein. The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
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