October 19th, 2017
News, Top News
VANCOUVER, BC–(Marketwired – Oct 19, 2017) – Pivot Pharmaceuticals Inc. ( OTCQB :PVOTF ) (“Pivot” or the “Company”), an emerging biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals, today announces the execution of a Binding Letter of Intent to acquire Absorbent Concepts Inc. (“ACI Foods” or “ACI”). Based in Abbotsford, British Columbia, ACI processes, packages and distributes gluten-free, organic hemp nutrition products including hulled seeds, cold-pressed hemp seed oil, and high percentage protein powder. For the 12-month period ending October 31, 2017, ACI forecasts revenues of approximately CAD $2.0 million, a 300% increase over the comparable period in the prior year. ACI holds hemp processing and cultivation licenses under Health Canada Industrial Hemp Regulations (IHR). The transaction is subject to customary closing conditions.
“We are excited to welcome ACI Foods to the Pivot family and together look forward to becoming a dominant force in the global hemp industry,” says Pivot CEO Patrick Frankham. “With impressive revenue and rapid growth in only three years of existence, we see an opportunity to help expand ACI Foods to significantly increase product offerings and sales. We consider this acquisition to be a strategic initiative to enable market share dominance in the hemp segment of the cannabis industry. The timing of this acquisition is in anticipation of the forthcoming legislative changes in Canada regarding the legal status of cannabidiol (“CBD”). Accordingly, the recent announcement by the World Anti-Doping Agency (WADA) that CBD will be removed from its list of banned substances effective January 1, 2018, further solidifies Pivot’s strategy of developing fast-to-market cannabinoid based products.”
ACI intends to submit an application to Health Canada for an authorized Dealer’s License which will allow it to produce and supply CBD oil as well as conduct cannabinoid research and development. Pivot Pharmaceuticals will use CBD produced at ACI’s facility, as well as other cannabinoids, to formulate nutraceutical and pharmaceutical products which can support health claims and provide therapeutic benefits. The market for CBDs in the form of functional foods, oils, orals and topicals is expected to show substantial growth, reaching $2.1 billion in consumer sales by 2020, with hemp-based sources attributing for $450 million of sales.
Peter Scales, founder of ACI states that, “With the phenomenal increase in consumer demand for functional food and natural health products, this transaction with Pivot Pharmaceuticals provides ACI with the ability to not only expand our nutritional business, but allows us to accelerate the development of hemp-based nutraceutical, pharmaceutical and veterinary products.” Mr. Scales serves as a board member and as chair of the National Standards and Grading Committee of the Canadian Hemp Trade Alliance, and will remain president of ACI.
Industrial hemp, the legalized cousin of marijuana, contains significant quantities of cannabinoids (e.g. CBD), a group of molecules shown through an expanding body of anecdotal and scientific evidence to have potential medical and health benefits. Hemp has less than 0.3% tetrahydrocannabinol (“THC”), the psychoactive ingredient in marijuana.
About ACI Foods Inc.
Founded in 2014 in Abbotsford, British Columbia, Canada, ACI Foods processes, packages and distributes gluten-free, organic hemp-based products including hulled seeds, cold-pressed hemp seed oil, and high-percentage protein powder. ACI is certified organic internationally through the Organic Crop Improvement Association (OCIA), registered Kosher through the Orthodox Union, and approved by Health Canada and the US Food and Drug Agency. ACI Foods holds hemp processing and cultivation licenses under Health Canada Industrial Hemp Regulations (IHR). For more information please visit www.ACIFoods.com
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals Inc. is an emerging biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot’s wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. (“PGS” or “Pivot Green Stream”), conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals. PGS has acquired worldwide rights to BiPhasix™ Transdermal Drug Delivery platform technology (topical) and Solmic Solubilisation technology (oral) for the delivery and commercialization of cannabinoid, cannabidiol (CBD), and tetrahydrocannabinol (THC)-based products. PGS’ initial product development candidates will include topical treatments for women’s sexual dysfunction (PGS-N005), as well as psoriasis (PGS-N007), and an oral product (PGS-N001) for cancer supportive care. PGS will seek to register these as Natural Health Products (NHP) for consumers. Products following the NHP pathway have shorter development cycles and can generate revenue faster than traditional pharmaceuticals. For more information please visit www.PivotPharma.com
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as anticipate, believe, estimate, expect, intend, and similar expressions, as they relate to Pivot, ACI Foods, or Pivot Green Stream, or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, such as the level of business and consumer spending, the amount of sales of Pivot’s products, the competitive environment within the industry, the ability of Pivot to continue to expand its operations, the level of costs incurred in connection with Pivot’s expansion efforts, economic conditions in the industry, and the financial strength of Pivot’s customers and suppliers. Pivot does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
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