Isodiol has signed the definitive agreement on industry leading CBD patents and strategic assets and announces international expansion with Scythian Biosciences Corp and Liberty Health Sciences Inc along with strategic investment led by the Serruya Private Equity Group.
VANCOUVER, B.C., April 17, 2018 (GLOBE NEWSWIRE) -- Isodiol International Inc. (CSE:ISOL) (OTC:ISOLF) (FSE:LB6A.F) (the “Company” or “Isodiol”), a global Bioactive CBD innovator specializing in the development of pharmaceutical and wellness products, is pleased to announce that the Company has finalized the definitive agreement and has closed upon the acquisition of strategic global assets. With the closing of this transaction, the Company has expanded its International Management Team and commenced development on a new state-of-the art processing facility in China for the extraction of cannabinoids and terpenes from organic certified hemp.
The Company has purchased the following strategic assets:
- BSPG Laboratories Limited (BSPGL-UK): organized in the United Kingdom, BSPGL-UK’s business includes, but is not limited to, an operating facility that refines the CBD molecule to a purity of >99.5%, is THC-Free and highly bioactive. Isodiol has acquired 100% of BSPGL-UK.
• Total consideration for BSPGL-UK was $13mm USD with $4.5mm USD having already been paid and an additional $8.5mm USD being paid over the next 16 months.
• Additional milestone payments of $25mm USD in stock will be made upon BSPG Laboratories Ltd. receiving Government approval for an Active Pharmaceutical Ingredient (API), which the Company believes is forthcoming and will provide the platform for which its isolate can be sold to pharmaceutical companies throughout the world for clinical and pharmaceutical use and could substantially increase the global revenue for the Company.
- Purodiol Do Brasil Ltda (PUR-Brazil): organized in Brazil, PUR-Brazil supplies Purodiol pharmaceutical products under ANVISA regulations to patients in Brazil and is currently involved in multiple clinical studies and trials. Isodiol has acquired 99% of PUR-Brazil, which provides an immediate boost to its revenue and substantially expands its customer base in South America.
• Total consideration for PUR Brazil was $2mm USD in cash and $3mm USD in common stock.
- Three Pivotal Processing Patents from Hankang (Yunnan) Biotech Co., Ltd. (HBTC-China): Organized in China, HBTC-China extracts CBD that is used for R&D and commercial purposes. HBTC-China has successfully developed and patented a sophisticated industrial production process to extract CBD from hemp. The Company has purchased these three patents for processing and extracting CBD from HBTC-China and has also secured an exclusive off-take agreement for 100% of their CBD production, currently operating at 1.5 metric-tons daily.
• Total consideration for the acquisition of the three patents and the 100% off-take agreement is $500,000 USD in cash.
Along with the purchase of these patents, the Company has commenced development on a new state-of-the-art processing facility in Yunnan, China that will have the ability to process over 15 metric-tons of hemp biomass daily for the extraction of cannabinoids and terpenes for use in medical, nutraceutical, food and cosmetic industries utilizing these technologies. The company believes this to be the highest capacity processing facility for CBD isolate in the world and is expected to be completed by Q1 2019. This innovative facility requires a capital investment for construction that is budgeted at $5mm USD and equipment costs that is budgeted at $7.5mm USD.
With the commencement of the new state-of-the-art facility, the company is proud to announce that general manager of HBTC-China, Mr. Pan Zongbing, is joining the company as the Vice President of R&D for Isodiol International, and as the Chief Operating Officer (COO) of Isodiol's wholly owned subsidiary, Iso Labs. Mr. Zongbing has studied the biological extraction of CBD from industrial hemp for over 10 years. He has successfully researched and developed the CBD industrial production process and his industrialized mass production technology and equipment is well known around the globe. With Mr. Zongbing, the company is excited to take the next steps in helping the world understand the benefits of CBD for the human body.
“These transactions mark major milestones for Isodiol. The acquisitions ensure the Company has a continued source of CBD and scalability of production as our international expansion continues to generate additional market demand for our products. The addition of the intellectual property and likelihood of obtaining an Approved Active Pharmaceutical Ingredient designation will ensure the Company holds its position as the world's leading purveyor of CBD,” said CEO of Isodiol, Marcos Agramont. “Through this new facility and the industrial-sized, patented extraction methodologies, we will significantly increase our production output of high-purity, bioactive cannabinoids that can be used in pharmaceutical applications.”
Isodiol has also closed a strategic investment for $10,000,000 led by the Serruya Private Equity Group, Scythian Biosciences Corp (“Scythian”) and Liberty Health Sciences, Inc. (“Liberty”) at $.73 with a full 3-year warrant at $1.00. This strategic financing will be allocated towards international expansion and the development of additional manufacturing facilities.
The company is also pleased to announce the continuation of its international expansion in Latin American with Scythian for distribution in Argentina, Jamaica, and Columbia. Scythian has made significant in-roads with the Argentinian government with supply agreements and plans to further that relationship in the CBD industry with this collaboration. The Company will further expand its plans for Jamaica and Columbia in the coming weeks.
In addition, Isodiol announces a strategic distribution partnership for Florida and Massachusetts with Liberty Health Sciences Inc. for Isodiol branded products within the medical dispensary market. This partnership will further expand Isodiol’s reach within two key US states, with the possibility of further expansion.
“These two distribution channels further expand the marketplace for Isodiol and we are excited that both of these companies share similar values in wanting to bring health and wellness to those people within the market they serve,” said Agramont.
The previously announced agreement with BSPG-Hong Kong has been canceled. All stock issuances are subject to 36 month escrow per CSE guidelines.
For more information on Isodiol, please visit www.isodiol.com
About Isodiol International Inc.
Isodiol International Inc. is the market leader in pharmaceutical grade phytochemical compounds and the industry leader in the manufacturing and development of CBD consumer products.
Isodiol is the pioneer of many firsts for the cannabis industry including commercialization of 99%+ pure, bioactive pharmaceutical grade cannabinoids, micro-encapsulations, and nanotechnology for the highest quality consumable and topical skin care products.
Isodiol’s growth strategy includes the development of over-the-counter and pharmaceutical drugs, expanding its phytoceutical portfolio and will aggressively continue international expansion into Latin America, Asia and Europe.
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ON BEHALF OF THE BOARD
Marcos Agramont, CEO & Director
INVESTOR RELATIONS:
Ir@isodiol.com
www.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 to not 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.
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