Transaction Includes Licensing, Manufacturing, Co-marketing and Distribution Agreements
VANCOUVER, Aug. 8, 2018 /PRNewswire/ – Pivot Pharmaceuticals Inc. (CSE: PVOT / OTCQB: PVOTF / FRA: NPAT) (“Pivot” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Pivot Naturals LLC, has entered into a Binding Letter of Intent with Healthcare Options for Patients Enterprises LLC, dba HOPE Cannabis Products (“HOPE”). Based in Las Vegas, Nevada, HOPE is a fully licensed extractor, manufacturer and distributor of cannabis products including effect-based vape cartridges, syringes, micro-dosed oral sprays, pre-rolls, infused pre-rolls, infused cold brew coffee and infused lemonade.
- Pivot enters Nevada cannabis market with a strategic partner;
- HOPE is fully licensed to manufacture, distribute and sell cannabis products in Nevada;
- Pivot to receive 10% royalty payment on Net Sales from all RTIC based-products sold by HOPE in Nevada;
- HOPE to manufacture and distribute ‘Pivot Naturals’ product line in Nevada;
- Pivot to manufacture and distribute HOPE’s product line in California;
Definitive Agreements will be completed on or before August 31, 2018 and will include the following:
HOPE was founded by a group of medical doctors who felt the time was right to harness the healing power of cannabis. They set out to create a company that would develop cannabis products to help people improve their lives. All of HOPE’s products are produced with the finest cannabis and use only the healthiest extraction methods to ensure their customers get the best and safest cannabis experience.
Dr. Howard Rubin, HOPE’s CEO, commented, “We are excited to work with the Pivot team and will immediately work to coordinate the production and sale of the RTIC powder so that we can provide Nevada consumers, as well as other licensed cannabis edible manufacturers, unique solutions and a suite of cannabis powderized products.”
Patrick J. Rolfes, President of Pivot Naturals LLC, stated, “I am thrilled that we have partnered with such an ethical and forward thinking company. This partnership not only monetizes the RTIC technology, but validates our strategy to formulate unique and differentiated products. Dr. Rubin and his team understand our vision of creating the best science-based health and wellness biocannabis products for consumers. Upon execution of these Agreements, Pivot will be well positioned to generate significant revenues in the State of Nevada, and with California coming online in Q4 2018, we now have access to two of the largest cannabis markets in the U.S.”
The U.S. is the epicenter of the legal cannabis market and it appears it will hold that position for the foreseeable future. In 2017 the worldwide legal marijuana trade grew by 37% and was worth $9.5 billion. At $8.5 billion, the U.S. accounted for 90% of it. At $0.6 billion Canada’s 2017 share was 6%. The rest of the world combined made up the remaining 4%.1 Nevada’sDepartment of Taxation had projected that in the first year of legal recreational sales, dispensaries would sell $265 million worth of retail marijuana and generate roughly $50 million in tax revenue. However, through the first 10 months, Nevada dispensaries have sold north of $340 million and brought in $55 million in taxes.2 The total combined sales in Nevada for medical, recreational and marijuana-related goods since recreational became legal is $433.51 million.
About Healthcare Options for Patients Enterprises LLC (“HOPE”)
HOPE’s premium cannabis products are created by doctors and scientists specializing in pain management, orthopedic surgery, internal medicine, medical psychology, psychopharmacology, and biochemistry with the vision of helping people live better and healthier lives. For more information please visit www.hopemmj.com
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot’s wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. (“PGS” or “Pivot Green Stream”), conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals. Pivot’s wholly-owned U.S. subsidiary, Pivot Naturals LLC, based in Costa Mesa, California, will manufacture and supply finished powderized cannabis products such as food additives, capsules, bulk powder and stick packs to the California market. PGS has acquired “RTIC” Ready-To-Infuse Cannabis oil-to-powder technology and Thrudermic Transdermal Nanotechnology (transdermal); acquired worldwide rights to BiPhasix™ Dermal Drug Delivery platform technology (topical), Solmic Solubilisation technology (oral), and Solumer™ Oral Drug Delivery technology; and an option to acquire worldwide rights to TriVair™ Nasal and Pulmonary Breath-Propelled Drug Delivery Systems™ for the delivery and commercialization of cannabinoid, cannabidiol (CBD), and tetrahydrocannabinol (THC)-based products. For more information please visit www.PivotPharma.com
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as anticipate, believe, estimate, expect, intend, and similar expressions, as they relate to Pivot Pharmaceuticals Inc., Pivot Green Stream Health Solutions Inc., Pivot Naturals, LLC, Healthcare Options for Patients Enterprises LLC, HOPE Cannabis Products Ltd., or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, such as the failure to meet the conditions imposed by the CSE or other securities regulators, the level of business and consumer spending, the amount of sales of Pivot’s products, statements with respect to internal expectations, the competitive environment within the industry, the ability of Pivot to continue to expand its operations, the level of costs incurred in connection with Pivot’s expansion efforts, economic conditions in the industry, and the financial strength of Pivot’s customers and suppliers. Pivot does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.