AgraFlora Organics International Inc.
(“
AgraFlora” or the “
Company”)
(
CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF),
a growth oriented and diversified international cannabis company,
is pleased to announce that the Company has entered into a
definitive agreement to acquire 50 per-cent of the issued and
outstanding shares of Eurasia Infused Cosmetics Inc. (“Eurasia
Infused”). AgraFlora and Eurasia will collaborate to integrate the
Company’s vertically integrated, farm-to-face CBD processing,
manufacturing and distribution model into the Asia Pacific region.
Eurasia Infused, by way of a commercial concession with Hong
Kong domiciled CBD Group Asia Limited (“CBD Group Asia”) controls a
distribution agreement for CBD and hemp-derived beauty and wellness
products for the territories of People's Republic of China
(“China”) and Hong Kong Special Administrative Region. The
distribution agreement extends to AgraFlora's diverse portfolio of
CBD-infused and/or hemp-oil-derived CPG personal care products, for
which CBD Group Asia will have an exclusive for sales in China,
including but not limited to:
- CBD-infused cosmetics;
- Hemp body soaps;
- Hemp-derived lotions and skin serums; and,
- CBD-infused sunscreen; and,
CBD Group Asia’s principals boast over ten years’ experience
specializing in the importation and customization of premium
Canadian consumer packaged goods (“CPGs”) for the Chinese
marketplace. CBD Group Asia management team have previously
distributed premium Canadian CPGs into China’s largest retail
chains and C-stores, including RT-Mart International Ltd and
Carrefour SA. RT-Mart alone operates over 484 retail locations
covering 233 cities and 29 provinces in China and generated $20
billion in sales in 2018.
AgraFlora and CBD Group Asia have commenced collaboration on a
variety of product customization and distribution initiatives for
its Whole Hemp Health line of all natural skin care products, with
the objective of tailoring the Company’s product offering for rapid
uptake into the Asian CPG markets. The Company’s Whole Hemp Health
product line derived from 100 per-cent organic Canadian hemp seed
oil and is presently marketed by way of brick-and-mortar retail
outlets, Amazon Prime, as well as direct to consumer, through an
integrated Shopify e-commerce platform. AgraFlora and CBD Group
Asia’s ongoing CPG customization and distribution deliverables
include:
- National CPG listings, leveraging CBD Group Asia’s high-traffic
distribution channels;
- Hemp oil certificate of Analysis (“COA”) authorization;
- Product and packaging customization;
- https://wholehemphealth.ca/pages/preview
- Development of a full-spectrum CBD facial serum, infused with
hemp root oil;
- Architecture of a network of Chinese Canutra/Whole Hemp Health
branded pop-up shops, further expanding the company's retail
footprint and brand presence in an economical and contemporary
manner;
- Integration into CBD Group Asia’s proprietary direct to
customer Asia sales WeChat platform;
- Unencumbered access to 1.08 billion current daily users
- Customs brokerage; and,
- Logistics optimization;
Brandon Boddy, Chairman and Chief Executive Officer of
AgraFlora, stated: “Chinese based consumers have long been
enamoured with premium Canadian CPGs. AgraFlora’s CBD distribution
agreement with CBD Group Asia complements our pursuit to capture
international shelf space for our innovative, ultra-premium suite
of cannabinoid-infused personal care products, within jurisdictions
positioned for geometric growth.
“CBD Group Asia has selected AgraFlora as its partner of choice
for CBD commercialization and distribution, due to the first-rate
nature of our assets, human capital and manufacturing capabilities.
According to Hong Kong based investment company Regent Pacific
Group, the CBD market in China alone is forecasted to be worth
US$15 billion by 2024, citing beauty and wellness as the primary
catalysts.”
By way of its wholly owned, cannabinoid-infused
cosmetics/topicals subsidiary, Canutra, AgraFlora is equipped with
robust cultivation, extraction, manufacturing and distribution
capabilities from the company's flagship facility in Kent County,
New Brunswick. Canutra owns and operates 76 acres of unzoned, arid
agricultural land, including 1,000 feet of river frontage.
The Company's New Brunswick facility, formerly a federally owned
farm and research facility, boasts over 17,500 square feet of
commercial-grade production facilities, as well as 12 separate
free-standing structures. Canutra was granted an industrial hemp
licence by Health Canada for its New Brunswick land parcel and
expects the imminent award of its 2019 Health Canada cannabis
research licence.
Canutra manufactures and distributes premium personal care,
cosmetics and cannabinoid-infused product lines including a suite
of trusted consumer brands such as Whole Hemp Health; a Canadian
all-natural, hand-made skin care line, formulated with
100-per-cent-Canadian organic hemp seed oil.
James Foster, CEO of CBD Group Asia, commented: “Canadian
manufactured CBD cosmetics products are considered to be from
amongst the highest valued by Chinese consumers for their high
quality, their brand innovations and integrity. Partnering with
AgraFlora gives us direct access to some of the most well-known
brands in Canada to sell through our distribution channels in
Asia.
“Our proprietary sales platform utilises WeChat a Chinese mobile
application with 1.08 billion current daily users offering the
largest standalone app currently in the world. We look forward to
making this venture a lasting success as Asian marketplaces
continue to open up and develop.”
Under the terms of the Securities Purchase Agreement (the
“Agreement”), AgraFlora will acquire 50 per cent of the issued and
outstanding shares in the capital of Eurasia Infused, in exchange
for an aggregate of 15 million common shares in the capital of the
Company, based upon the five-day volume-weighted average price
(“VWAP”) of AgraFlora common shares for the five trading sessions
prior to the announcement of the definitive agreement. The closing
of this acquisition is subject to customary terms and
conditions.
A finders fee is payable on this transaction.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Service Canada and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company has a successful record of creating shareholder value and
is actively pursuing other opportunities within the cannabis
industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 682-2928
For additional
information:AgraFlora Organics International Inc.
Tim McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy
Scalabrini, Maricom Inc.E: rs@maricom.ca T: (888)
585-MARI |
The CSE and Information Service Provider have not reviewed and
does not accept responsibility for the accuracy or adequacy of this
release.
Forward-Looking Information Cautionary
Statement
Except for statements of historic fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking statements
including, but not limited to delays or uncertainties with
regulatory approvals, including that of the CSE. There are
uncertainties inherent in forward-looking information, including
factors beyond the Company’s control. There are no assurances that
the business plans for AgraFlora Organics described in this news
release will come into effect on the terms or time frame described
herein. The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
statements. Additional information identifying risks and
uncertainties that could affect financial results is contained in
the Company’s filings with Canadian securities regulators, which
are available at www.sedar.com.
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