Alternate Health to Acquire Leading American CBD Manufacturer
Toronto, Ontario--(Newsfile Corp. - October 30, 2019) - Alternate Health Corp., (CSE:AHG) (OTCQB:AHGIF) ("Alternate Health" or the "Company"), an international leader in CBD product development and distribution, announced today that the Company has signed an agreement (the "Agreement") to acquire 51% of Mr. Custom White Label, LLC, ("MCWL"), a California-based white label / private label manufacturer of hemp-derived CBD products.
"In this acquisition, Alternate Health is securing a leading position in the global hemp-derived CBD industry," says Howard Mann, CEO of Alternate Health. "As state governments strengthen CBD regulations, we see a tremendous opportunity in manufacturing our hemp-derived products in FDA-registered and cGMP-certified facilities."
Mr. Custom White Label - At the forefront of CBD private labelling.
As California's premier white label / private labelling company, MCWL uses pharmaceutical-grade equipment in its state-of-the-art, cGMP facility in greater Los Angeles. MCWL manufactures over 200 product SKUs, including hemp gummies, sublingual tinctures, bath bombs, lotions, chocolate bars, soft gels, hand soaps, lip balms, and transdermal patches. A full product list can be found at www.mrcustomwhitelabel.com/.
"We are excited to merge Alternate Health's pharmaceutical experience and know-how into our advanced CBD manufacturing business," says Bob White and Ese Roberts, Founders of MCWL. "Together, we are creating a best-in-class CBD company, with a level of expertise, production capacity, and commercial networks few competitors can match."
Strategic Plan and Growth Strategy
Alternate Health's strategic plan is to combine MCWL's operations and the Company's Blaine Labs subsidiary into the world's first fully vertically integrated hemp-based CBD manufacturer and distributor. The Company aims to garner a dominant role in worldwide direct-to-consumer sales and retail distribution of CBD products made in accordance with FDA standards. Alternate Health will seek to extend its FDA-registered, drug manufacturing license to include MCWL's cGMP facilities.
State governments from California to Florida are currently drafting and finalizing new CBD regulations that will require all CBD manufacturing practices be done according to established FDA and cGMP standards. Moving forward, it is essential that CBD products are manufactured, tested, and packaged in FDA and cGMP-compliant facilities.
Alternate Health is in advanced negotiations to sign private label agreements with several major CBD brands and network marketing companies, which would include production both at Blaine Labs and MCWL's facilities. The Company expects the transaction to close within eight weeks, with revenues reflected in the first quarter of 2020.
"Over the past six months, Alternate Health has acquired Blaine Labs, a licensed pharmaceutical company, and launched our wholesale division, Alternate CBD," says Howard Mann. "By acquiring Mr. Custom White Label, we expect to complete the acquisition of assets, machinery and manpower necessary to capture a dominant role of the CBD market that New York bank Cowen & Co. estimates to reach $16 billion by 2025."
Alternate Health has agreed to purchase a controlling 51% stake in Mr. Custom White Label LLC, including its cultivation, extraction and manufacturing businesses. The parties have agreed to undergo a third-party assessment to reach a fair evaluation. Consideration will be paid in common shares of Alternate Health Corp.
About Alternate Health
Alternate Health is an international leader in the hemp-derived CBD industry, including extraction, product development, and distribution. Through Alternate Health's subsidiary, Blaine Labs, the Company has 23 years of experience in FDA-registered and cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens. For more information about Alternate Health Corp., visit www.alternatehealth.com.
About Mr. Custom White Label
Mr. Custom White Label is a California-based CBD company, specializing in white label / private label manufacturing using pharmaceutical grade equipment with full integration from seed to production lab. At the forefront of the CBD white label industry, Mr. Custom White Label combines cGMP manufacturing with FDA-standards that matches big box store capacity. With an on-site compound pharmacist and in-house formulation team, Mr. Custom White Label offers our clients a fully customizable experience with quick turnarounds with competitive prices. For more information, visit www.mrcustomwhitelabel.com/.
Scott Holtby | Investor Relations
Jim Tykoliz | Company Director
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, including with respect to the closing of the letter of intent, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
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