Canbud Signs Letter of Intent with Hempsana For Accretive Revenue Partnership
Toronto, Ontario--(Newsfile Corp. - January 19, 2021) - Canbud Distribution Corp. (CSE: CBDX) (FSE: CD0) ("Canbud" or the "Company") is pleased to announce it has signed a Letter of Intent with Hempsana Inc. ("Hempsana") to develop and manufacture CBD products for distribution to the medical-patient channel.
The United Nations Commission on Narcotic Drugs (CND) accepted and passed a World Health Organization (WHO) recommendation to remove cannabis and cannabis resin from Schedule IV of the 1961 Single Convention on Narcotic Drugs on December 2, 2020.This is a major historic win that is highly anticipated to clear the way for an expansion of cannabis research and medical use.
The Biden Administration as incoming POTUS touted their support for cannabis decriminalization during their election campaign.
Canbud believes that the Democrat control of the Congress coupled with the UN decision, provides potential for explosive growth of medical cannabis demand in the US and globally.
According to Research and Markets, the world's largest market research store, publication in October 2020, Global CBD Oil & CBD Consumer Health Market 2020, "The global CBD oil and CBD consumer health market size is expected to reach USD 123.2 billion by 2027, expanding at a CAGR of 25.6% over the forecast period."
Canbud is positioning itself to exploit the growth opportunity in the medical CBD and CBD consumer health/nutraceutical markets with strategic moves to synergize with higher margin distribution channels. Pursuant to the patient distribution network development announced last December 29th, 2020, the Company has entered into a strategic partnership with Hempsana, an innovative Canadian cannabis company specializing in cannabis derivatives with a focus on Extraction & Purification. Hempsana's Health Canada Licenced EU GMP compliant facility provides them with access to wholesale and retail channels internationally, including the EU, Asia, South America, US, and Canada.
Raj Ravindran, CFO, comments: "This strategic partnership with Hempsana is further evidence of our aggressive approach to create accretive revenue streams. This partnership will expand to create more partnerships with global CBD brands to serve the Canadian market as well as other international jurisdictions."
"We are excited about this endeavour with Canbud and the synergies between the companies as we move forward. This partnership provides Hempsana a pathway into the medical consumer segment of the cannabis industry; more importantly, medical patients will gain access to high-quality cannabis products from Hempsana. By further diversifying our distribution channels we continue to execute on accelerating revenue growth by monetizing our expertise in the medical cannabis sector," says Randy Ko, CEO and President of Hempsana.
The company has granted 300,000 incentive stock options to a consultant of the corporation. The options have an exercise price of 22 cents and a term of 4 years expiring on January 15, 2025.
About Canbud Distribution Corp.
Canbud Distribution Corp is a science and technology health and wellness company that encompasses plant based, psychedelic pharmaceutical and non-psychedelic nutraceutical, and hemp cannabinoids (CBD) verticals.
For further information, please contact:
Robert Tjandra, President and COO
Tel: 1 416 847 7312
About Hempsana Inc.
Hempsana Inc. is a Canadian cannabis company specializing in cannabis derivatives focussed on Extraction & Purification, and End-Product Manufacturing. The Company has approval for CBD oil extraction in the EU and has been granted Health Canada's Standard Processing and Industrial Hemp Licenses. Product and Service Offerings include high-quality cannabis derivatives, and end-product development services for cannabis companies.
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Certain information set forth in this news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Corporation, including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking information. The Corporation undertakes no obligation to update forward-looking information except as otherwise may be required by applicable securities law.
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