Passage of the U.S. Farm Bill and legalization
of hemp to unlock a multi-billion-dollar wellness market for
CBD
/NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
OTTAWA, Dec. 12, 2018 /CNW Telbec/ - LiveWell Canada
Inc. ("LiveWell" or the "Company"), (CSE: LVWL),
anticipates the passage of the U.S. Agriculture Improvement Act of
2018, known as the Farm Bill, will unlock a multi-billion-dollar
market for wellness products made from hemp CBD and other
hemp-derived cannabinoids.
The Farm Bill, which passed the Senate 87-13 on
Tuesday, Dec. 11, 2018, will legalize
industrial hemp, including interstate commerce for hemp and
hemp-derived CBD. The measure must still pass one final vote
in the House of Representatives before being sent to President
Trump to sign into law. Pundits expect that to happen by the end of
the year.
With the legal ambiguities lifted, LiveWell Canada anticipates
tremendous market demand for CBD in 2019.
Legalization and acceptance of CBD for its health and wellness
benefits is accelerating at a rapid pace globally. CBD is most
commonly being used for anxiety, insomnia, pain and nausea, but is
being investigated as a treatment for other conditions. Earlier
this year, the U.S. FDA approved the CBD drug, Epidiolex, for the
treatment of childhood epilepsy.
The World Health Organization has also recommended descheduling
CBD as a controlled substance among its 194-member states. The
Brightfield Group of Chicago
forecast the market for CBD from hemp could reach US$22 billion by 2022.
"We believe the market for hemp CBD could exceed the industry
forecasts because of the huge shift to self-directed care and
wellness among consumers. With the legal barriers and ambiguities
removed, there will be greater awareness and acceptance of CBD as
an alternative product for functional outcomes," says David Rendimonti, President and CEO of LiveWell
Canada. "We are only seeing the tip of the iceberg of what this
industry will become."
About Hemp CBD
CBD, short for cannabidiol, and other cannabinoids, can be
extracted from both hemp and cannabis, but CBD derived from hemp is
more economical to produce and faces fewer legal restrictions
worldwide than cannabis. That's because of its low THC content, the
ingredient that makes you high.
There are three different strains of cannabis—Cannabis sativa
L., Cannabis indica and Cannabis
ruderalis. Years of selective cultivation of Cannabis
sativa L. has produced two sub-types of the strain:
medical cannabis (marijuana) and industrial hemp. The two plants
differ in terms of appearance and cannabinoid composition, most
notably in that hemp possesses only trace amounts of the THC found
in medical cannabis.
The anticipated passage of the Farm Bill would legalize all
products made from industrial hemp, including CBD, if they contain
no more than 0.3 percent THC.
About LiveWell Canada
LiveWell is strategically positioned to be a leader in the
emerging CBD market. As announced on Dec.
3, 2018, LiveWell has signed a binding letter of agreement
to merge with Vitality CBD Natural Health Products Inc. (the
"Merger"), one of the largest industrial hemp cultivation
and extraction operations in North
America, with approximately 20,000 acres harvested in 2018.
The Merger will bring together U.S. and Canadian assets to create
one of the first fully integrated, large-scale hemp CBD companies:
Production capacity of CBD isolate anticipated to reach 3,000
kilograms per day by mid-2019; CBD research, product development
and GMP manufacturing facilities; international sales and
distribution networks, and experienced leadership.
LiveWell's team of researchers and scientists recently completed
a seven-month study and major market report on CBD, has published a
white paper on CBD from Industrial Hemp, is working on CBD product
formulations and partnering with other research entities.
On Oct. 5, 2018, LiveWell
announced it was acquiring Acenzia Inc., a Windsor, Ont.-based developer and manufacturer
of nutraceutical products for the health and wellness
market. Acenzia specializes in patented therapeutics specific
to particular medical conditions and personalized diagnostics. It
also offers a manufacturing facility that is certified by Health
Canada, is FDA registered and has NSF certifications for GMP, for
Sport, and is USDA-Certified Organic. The acquisition is
expected to close in the near future.
LiveWell is also a late-stage cannabis cultivation applicant and
has greenhouses under construction in Ontario and Québec.
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements about the
Company and its business. Often, but not always, forward-looking
statements can be identified by the use of words such as "plan",
"continue", "expect", "schedule", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed"
and other similar words, or statements (including negative
variations) that certain events or conditions "may" or "will"
occur. Such statements are based on the current
expectations of management. The forward-looking events and
circumstances discussed in this release may not occur by certain
specified dates or at all and could differ materially as a result
of unknown and known risk factors and uncertainties affecting the
Company. Further, the Company cautions that this foregoing list of
material factors is not exhaustive, and readers are encouraged to
read all Risk Factors disclosed in the Company's Management
Discussion & Analysis dated October 26,
2018.
In respect of the forward-looking statements and information
concerning the anticipated benefits and completion of the Merger,
including the anticipated timing for completing the definitive
agreement, the Company has provided such statements and information
in reliance on certain assumptions that it believes are reasonable
at this time. Further, there can be no assurance that
the Merger will occur, or that it will occur on the terms and
conditions contemplated in the binding letter of agreement.
Following the due diligence, the Merger could be modified,
restructured or terminated.
The forward-looking information contained in this press
release represents expectations of the Company as of the date of
this press release and accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, it does not undertake
to update this information at any particular time except as
required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation
Services Provider accepts responsibility for the adequacy or
accuracy of this release.
For more information, visit livewellcorp.com
SOURCE LiveWell Canada Inc.