News - HempMed deal closes
2017-04-11 14:31 ET - News Release
Mr. Jonathan Fiteni reports
MYM NUTRACEUTICALS INC. CLOSES ACQUISITION OF LEADING HEMP CBD BRAND "HEMPMED"
MYM Nutraceuticals Inc. has completed its acquisition of 100 per cent of the brand and assets of HempMed, a Toronto-based developer and marketer of hemp-based cannabidiol (CBD) extracts and oil-infused nutraceutical products.
Pursuant to the acquisition agreement between MYM and HempMed, MYM issued 2,500,000 MYM shares to Anthony Lawand, the owner of HempMed, and a further 1,500,000 will be issued to Lawand upon reaching certain monthly and annual sales targets .
The fast growing HempMed brand is expected to do sales in excess of $1,400,000 in the next 12 months. MYM has plans to build a new high-capacity production facility for HempMed that will increase its sales capacity to handle more than $10,000,000 per year. Further, MYM will open new markets and build an effective online retail strategy for the already popular HempMed brand.
MYM has plans to rebrand the entire line of products including upgrading manufacturing facilities for large-scale production capabilities. Online sales and marketing will be a major focus to accelerate worldwide expansion of CBD product sales. With the additional support both financially and professionally the Company believes the CBD product line will be one of its top performers. MYM has retained the senior staff and founder of HempMed on contract for a minimum of 3 years to drive success within the billion-dollar industry.
The CBD nutraceutical market is growing rapidly worldwide due to an explosion of consumer interest and impressive medical studies on the benefits of high quality hemp CBD products. A recent Forbes magazine article estimated that the CBD market will grow to $2.1 billion market by 2020 with $450 million of those sales coming from hemp-based sources. That's a 700% increase from 2016.
"We are pleased to have the HempMed team on board MYM," commented Jonathan Fiteni, CEO of MYM, "We have high expectations for this business division and we will be investing substantial capital in sales and marketing platforms that will engage a wide range of people who are looking for alternative organic plant based products capable of aiding in the relief multiple ailments with little or no side effects."
The current HempMed product line currently consists of over 20 Hemp products and plan to launch several more groundbreaking products over the next 12 months as a direct result of the transaction. MYM plans on expanding HempMed's existing distribution network, which consists of over 60 retail outlets and online sales portals across Canada, the USA, and Internationally. Furthermore, MYM plans to build a brand-new, robust e-commerce website to drive online sales. The current Product line includes signature tinctures, concentrates and oils, edibles, vape products and a line of fast growing pet CBD products, which will join the multi-billion-dollar pet market.
CBD hemp oil and hemp-based nutraceuticals have been some of the strongest components of the cannabis industry. HempMed has developed proprietary technology that allows their CBD products to be not only very effective but of the highest quality and consistency.
MYM is continuing to negotiate acquisitions of complementary businesses and assets in the technology, nutraceuticals and CBD nutraceutical sectors and is currently in talks with other innovative companies.
MYM Nutraceuticals Inc. is a public company whose primary focus is developing high-end organic medicinal supplements and topical products. MYM has an interest in the development of high-density farming facilities and other technologies that allow MYM to expand its brand into the global market.