VANCOUVER, BC / April 8, 2019 / EastWest Bioscience (the “Company” or “EastWest”) (TSX.V: EAST) expands on its vision, strategy, and outlook for the future and comments on its 2Q financial results for the three months ended January 31, 2019.
“It has been a very busy operational quarter,” explains Rodney Gelineau, CEO of EastWest Bioscience. “The team has been tasked with integration of the Sangster’s purchase, as well as re-positioning five stores as corporate stores. The operational goal for each of those corporate stores is to turn them into Sangster’s SuperCentres, which will be a combination of health food store and pharmacy. We also launched the Chewy Goodness Hemp Snack Bars under our Earth’s Menu food line and the first shampoo and conditioner products under our ChanvreHemp body care line. Overall, the company’s sales increased substantially from the previous quarter.”
“Through the balance of the year we are aggressively pursuing product development for both the non-CBD and CBD product lines being developed for Canada, the USA, and the EU. With the recent news of mainline stores in the US selling CBD in their stores, we strongly anticipate the regulatory approval of our operations entering into the US markets. Overall, we expect our measured, focused, market-oriented operations, product development, and sales efforts to contribute to a steady, focused, healthy growth in our top line and we anticipate 2019 being a very good year.”
Highlights from the quarterly financials include:
In the near term, the Company anticipates continued top-line revenue growth as it develops and releases new products and moves forward with expansion into the USA and the EU.
“Our hemp-based products are already unique, and we continue to gain shelf space,” explains Gelineau. “With the infusion of CBD into our existing products, we anticipate a significant competitive advantage. Additionally, EastWest is working on several joint ventures which will allow the Company to fully realize assets and generate additional revenues for the EastWest group of companies.”
The medium goal is to achieve profitability through economies of scale.
Sangster’s sells nutraceutical, sports nutrition, food, and body care products to and collects royalties from its franchisees, sells products on-line, and operates corporate retail stores in Saskatchewan and Alberta. The acquisition adds significant components to the vertically integrated health and wellness supply chain model of EastWest. These beneficial components include built-in store shelves to sell product through, in-house customer data with valuable R&D insight into current and future product development, piloting opportunities for marketing and merchandising strategies, and a ready platform for developing the SuperCentre model of natural health and pharmaceutical products. These components give EastWest a retail foundation to develop and sell products with combinations of hemp, CBD and natural product ingredients.
“The Sangster’s acquisition provides EastWest a national retail footprint for the implementation for the sale of EastWest’s CBD product line, currently under development in the USA,” says Gelineau. “Additionally, the existing data from our retail stores is providing valuable insight for the development of our unique health and wellness products.”
The company expects to have significant corporate developments to announce in the near to medium term.
About EastWest Bioscience Group
EastWest Bioscience is a vertically integrated wellness company with the infrastructure to become a global giant in the Hemp & CBD consumer health market. 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) ChanvreHemp – all-natural health and beauty products. The organization will continue to focus on the ongoing development of innovative, hemp-based consumer products through advanced science with clean, natural ingredients to complement its current product offerings.
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.