June 29, 2018 – Vancouver, BC – 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.
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.
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.
ON BEHALF OF THE BOARD
“Marcos Agramont” CEO & Director
COMPANY MEDIA :
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.