The partnership allows for both companies to stake a claim in
the expanding $532
billion beauty industry with the
most advanced and only clinically backed CBD skin care line
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TORONTO, Aug. 11, 2020 /CNW/ - Avicanna Inc. ("Avicanna")
(TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company
focused on the development, manufacturing and commercialization of
organic and sustainable plant-derived cannabinoid-based products,
and Red White & Bloom Brands
Inc. (CSE: RWB) (OTC: RWBYF) ("RWB" or "Red
White & Bloom") are pleased to announce that they have
entered into a distribution agreement for the exclusive
distribution of Avicanna's advanced and clinically backed CBD-based
cosmetic and topical products Pura H&W™ by RWB in the US and
certain other markets.
The $532 billion beauty industry
continues growing rapidly and new trends such as the introduction
of CBD cosmetics is anticipated to establish a strong market
presence in markets that permit retail sales such as the United States. The Pura H&W branded
products utilize hemp-derived CBD, the non-psychoactive and
non-controlled cannabinoid, which allows for cosmetic designation
and retail sales.
The launch of this innovative and premium hemp-derived CBD
product line will leverage from the growing use of online platforms
for shopping including Pura H&W's own e-commerce platform,
third party e-commerce channels, and "big box" retailers in
addition to the existing commercial infrastructure of RWB in
the United States.
Brad Rogers, chairman and chief
executive officer of RWB, stated: "Throughout my career, I have
seen tremendous success licensing brands, strategically leveraging
them for the demographics that recognize the best in class quality
& efficacy, and then listing them in big box and specialty
retailers. This agreement paves a path that will allow RWB and
Avicanna to grow together well into the future beyond our news
today."
Under the agreement, which has an initial five-year term, RWB
will exclusively distribute the Pura H&W™ brand and certain
other white label brands at RWB's direction. Having been developed
by researchers and collaborators from world class medical and
academic institutions, the Pura H&W™ line of products has been
developed through a scientific and evidence-based approach. This
approach in product development has allowed Avicanna to
synergistically combine natural ingredients with hemp-derived CBD
in advanced and proprietary formulations that have completed 3
cosmetic human clinical studies. Product development is always
commenced with the consumer in mind and specific needs are
addressed through analysis in observational as well as
interventional clinical studies. Avicanna's hemp-derived CBD
infused cosmetics and topicals equip RWB with the opportunity to
set the standards with advanced research and development for
hemp-derived CBD cosmetics and GMP manufacturing.
The 3 cosmetic clinical studies were completed on Avicanna's
formulations targeted at cosmetic factors associated with aging,
acne-prone skin, and eczema-prone skin. The successfully completed
studies involved 156 patients that were tested for both safety and
certain derma-cosmetic endpoints, including hydration and excess
oil production. The results of all three studies achieved positive
results in the endpoints with no adverse effects, making products
part of one of the only cannabinoid consumer product lines with
human safety and efficacy data.
Aras Azadian, CEO of Avicanna,
commented: "After years of R&D and clinical development of what
we believe is the most advanced line of CBD skin care products, we
are thrilled to have partnered up with the team at RWB, who provide
an ideal partner for Avicanna and the Pura H&W line of
products. We believe their access and expertise in the US market
through commercial and retail channels will allow the Pura H&W
branded products to reach their potential as the leading skin care
brand."
Terms of the agreement
RWB will pay Avicanna an upfront licensing fee in the amount of
two hundred fifty thousand Canadian
dollars (CAD$250,000)
in cash, along with minimum purchase requirements for the rights to
be the exclusive distributor of Avicanna's Pura H&W branded
cosmetic products in the US. Under the agreement, RWB also has the
right to purchase Avicanna's cosmetic products for distribution
into the US and certain other territories under brands of RWB's
choosing. The initial product offerings under the agreement will
include body and face lotions, cosmetic creams, gels and serums, as
well as soaps and bath bombs.
To the knowledge of the Company, it carries out its operations
in compliance with all applicable laws in the jurisdictions in
which it operates.
About Red White & Bloom
Brands Inc.
The Company is positioning itself to be one of the top three
multi-state cannabis operators active in the U.S. legal cannabis
and hemp sector. RWB is predominately focusing its investments on
the major US markets, including Michigan, Illinois, Massachusetts, California, and Florida with respect to cannabis, and the US
and internationally for hemp-based CBD products.
For more information about Red
White & Bloom Brands Inc., please contact:
Tyler Troup, Managing
Director
Circadian Group IR
IR@RedWhiteBloom.com
Visit us on the web: www.RedWhiteBloom.com
Follow us on social media:
Twitter: @rwbbrands
Facebook: @redwhitebloombrands
Instagram: @redwhitebloombrands
About Avicanna Inc.
Avicanna is an Ontario, Canada
based corporation focused on the development, manufacturing, and
commercialization of plant-derived cannabinoid-based products
through its two main business segments, cultivation and research
and development.
Avicanna's two majority-owned subsidiaries, Sativa Nativa S.A.S.
and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna's
cultivation activities. These two companies are licensed to
cultivate and process cannabis for the production of cannabis
extracts and purified cannabinoids including cannabidiol (CBD) and
tetrahydrocannabinol (THC).
Avicanna's research and development business is primarily
conducted out of Canada at its
headquarters in the Johnson & Johnson Innovation Centre, JLABS
@ Toronto. Avicanna's scientific
team develops products, and Avicanna has also engaged the services
of researchers at the Leslie Dan Faculty of Pharmacy at the
University of Toronto for the purpose
of optimizing and improving upon its products.
Avicanna's research and development and cultivation activities
are focused on the development of its key products, including
plant-derived cannabinoid pharmaceuticals, phyto-therapeutics,
derma-cosmetics, and Extracts (defined as plant-derived cannabinoid
extracts and purified cannabinoids, including distillates and
isolates), with a goal of eventually having these products
manufactured and distributed through various markets.
For more information about
Avicanna, visit www.avicanna.com, call 1-647-243-5283, or
contact Setu Purohit, President by
email at info@avicanna.com.
Cautionary Note Regarding Forward-Looking Information and
Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Forward-looking
information contained in this press release may be identified by
the use of words such as, "may", "would", "could", "will",
"likely", "expect", "anticipate", "believe, "intend", "plan",
"forecast", "project", "estimate", "outlook" and other similar
expressions, and includes statements with respect to the ability of
Avicanna or RWB to perform under the agreement, the manufacturing
of the products, the shipping and delivery of the products to
customers in the United States and
worldwide, and the appropriate education and marketing efforts.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management in light of management's experience and perception of
trends, current conditions and expected developments, as well as
other factors relevant in the circumstances, including assumptions
in respect of current and future market conditions, the current and
future regulatory environment; and the availability of licenses,
approvals and permits.
Although the Company believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because the Company can give no
assurance that they will prove to be correct. Actual results and
developments may differ materially from those contemplated by these
statements. Forward-looking information is subject to a variety of
risks and uncertainties that could cause actual events or results
to differ materially from those projected in the forward-looking
information. Such risks and uncertainties include, but are not
limited to current and future market conditions, including the
market price of the common shares of the Company, the delay or
failure to receive regulatory approvals, and the risk factors set
out in the Company's annual information form dated April 15, 2020, filed with the Canadian
securities regulators and available under the Company's profile on
SEDAR at www.sedar.com.
The statements in this press release are made as of the date
of this release. The Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
SOURCE Avicanna Inc.