VANCOUVER, BC / January 21, 2019 / EastWest Bioscience (the “Company” or “EastWest”) (TSX.V: EAST) announces that it has completed the fifth of the five planned Sangster’s Health Center Stores converted from a franchise owned to a corporate owned store. The Sangster’s Country Hills Mall Store at 450 Country Hills Blvd, NE, Calgary Alberta will re-open tomorrow, January 22nd, 2019 at 10AM MST. Country Hills Mall is a boutique mall located in one of Calgary’s newer communities. The mall conveys an air of urban sophistication and retail charm where Sangster’s enjoys the company of 50+ other unique shops, boutiques and services. An official Grand Opening event for this store as well as the other newly converted Calgary corporate store at the Marlborough Mall is anticipated to be mid-March in conjunction with the Sangster’s 2019 Spring Product Flyer.
“We are pleased to have the final of our five corporate stores opened,” explains Ciska Asriel, President of Sangster’s. “While Sangster’s is committed to the franchise model, we understand a handful of corporate stores provides operational options and opportunities. Our strategy is to use the corporate stores for testing and launching new ideas, promotions, products, retail design and merchandising options and upgrades, et cetera before we roll them out to the broader franchise. In addition to using corporate stores to development and establish new ideas, if the appropriate franchisee opportunity arises, we also maintain the option of converting it back to a franchise store.”
EastWest’s Strategic Plans for Sangster’s
EastWest continues to develop its Sangster’s Superstores concept and plans in the future to convert its corporate stores into these Sangster’s Super Centres. The Superstore concept envisions the integration of traditional health products stores with pharmacies to take advantage of anticipated Canada Health regulatory changes enabling the sales and distribution of CBD health products in the natural health space. Though the passage of the Farm Bill that legalized hemp derived CBD as natural products in the US hints at a similar outcome in Canada, the Company is still considering the eventuality that CBD in Canada could remain as a controlled substance, with CBD products distributed only as prescribed medical and pharmaceutical products. Consequently, the Company is exploring strategic opportunities for also adding medical clinics into its Sangster’s Superstores which are intended to have pharmacies.
EastWest is also pursuing other major acquisitions that will further expand EastWest’s revenues and distribution footprint and will be updating markets and shareholders with additional revenue streams as part of its vertically integrated model.
About EastWest Bioscience Group
EastWest Bioscience is a seed-to-sale organization that offers world class manufacturing and premium hemp-based consumer goods. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium hemp products. EastWest is strategically positioned in mainstream consumer markets with wholistic natural products and has developed distribution channels into mainstream stores and markets in Canada. The Company has a Health Canada licensed, GMP (Good Manufacturing Practices) certified manufacturing facility and produces premium brands offering natural products for a preventive care lifestyle. EastWest consumer product lines are divided into four distinct brands: 1) Natural Advancement – natural biopharmaceutical health supplements; 2) Earth’s Menu – all-natural hemp superfoods; 3) Natural Pet Science – pet food and pet supplements; and 4) Chanvre Hemp – all-natural health and beauty products. The organization will continue to focus on ongoing development of innovative, hemp-based consumer products through advanced science with clean, natural ingredients to complement its current product offerings.
About Sangster’s Health Centres
Sangster’s Health Centres occupies a distinguished position in the Canadian natural health products and natural health industry in Canada. Founded in 1971, Sangster’s stores and people have been providing their customers knowledge and hundreds of product remedies for the safe, natural prevention and treatment of disease and ailments for almost 50 years. Sangster’s has introduced and developed over 200 exclusive Sangster’s products (vitamins, mineral, herbs, proteins, natural body care and organic foods) putting the Sangster’s name and branded products into thousands of Canadian households. Today, Sangster’s continues to grow as a national brand name with franchise stores located across Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
Co-Founder, Chief Executive Officer and Director
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.