VANCOUVER, British Columbia, Dec. 20, 2017 (GLOBE NEWSWIRE) -- Pivot Pharmaceuticals Inc.
(CSE:PVOT) (OTCQB:PVOTF) (“Pivot” or the “Company”), an emerging
biopharmaceutical company, is pleased to announce that the Company has
signed a Binding Letter of Intent to acquire ERS Holdings, LLC (“ERS”), a
privately-held California company. ERS has developed a patented
technology called “RTIC” - Ready To Infuse Cannabis (“the
Patent”) and has also filed several continuation patents relating to the
transformation of cannabis oil into powder for infusion into a variety
of food and beverage products such as capsules, K-Cups, stick packs,
baked mixes, liquid shots, protein shakes, topicals, lotions and bottled
beverages.
In exchange for 100% of ERS
(Patent Portfolio and Trademarks for “Instant THC™” and “Instant CBD™”),
Pivot will pay ERS $1,000,000 USD and 5,000,000 Common Shares (“The
Shares”) of Pivot Pharmaceuticals Inc. The Shares will be subject to a
six (6) month restriction with the first 25% of the total number of
Shares to be released six (6) months following the closing date, with
25% to be released every quarter thereafter. Completion of the
acquisition is subject to regulatory approval and standard closing
conditions.
A recent report by Deloitte
suggests that “on sales of recreational marijuana alone, the Canadian
marketplace could be as much as $5B per year to start – a number on par
with the Canadian spirit market (whiskey, vodka, rum, etc.). At the
upper threshold, which takes into account the people who are 'likely to
consume,' marijuana sales alone could be as high as $8.7B, similar to
sales generated by wine.”
Current cannabis
product formulations are either poorly absorbed topicals and orals or
inhaled and smoked carcinogens. Health-conscious adults who seek the
therapeutic benefits of cannabis without the negative health effects
represent a large, untapped demographic. This demographic is also
inundated with edible product choices that are high in sugar, such as
candy or confectionary. Health-seeking consumers who use cannabis daily
represent a large market opportunity for Pivot. The acquisition of ERS
allows Pivot to add to its growing pipeline of cannabis-based products.
Invented
by Ross Franklin and Ed Rosenthal, the invention “relates generally to
methods and compositions of matter for enabling concentrated cannabis
oil to be stable, emulsifiable and flavorless for use in hot beverages
or food by combining cannabis oil with a starch powder or starch-derived
powder. Embodiments also relate to a variety of culinary uses for the
stabilized, emulsified, flavorless concentrated cannabis oil powder.”
Mr.
Franklin, ERS’ CEO, said, “After being courted by some of Canada’s
largest cannabis companies, we selected the Pivot team to help monetize
our patent. Their management team has extensive pharmaceutical and
nutraceutical industry experience and an impressive track record of
bringing products to market. In addition to the food and beverage
markets, we also look forward to integrating 'RTIC' into Pivot’s current
topical, oral and nanoparticulate pipeline.”
Dr.
Patrick Frankham, CEO of Pivot Pharmaceuticals, stated, “Pivot believes
that the anticipated changes in cannabis regulation in Canada and
California will provide an opportunity to launch multiple products into
the healthcare and recreational markets in 2018. We are delighted that
Ross Franklin and Pat Rolfes from ERS have chosen Pivot to help
transform their patents and processes into therapeutic consumer goods.
Pivot is in ongoing discussions with several Canadian Licensed Producers
and Licensed Dealers in order to accelerate commercialization of our
large pipeline of technology-driven products. If a suitable joint
venture partner is not identified by January 2018, Pivot will seek a
Licensed Dealer designation from Health Canada and commence construction
of its own production facility. As a result, Pivot has engaged CBRE,
the world’s largest commercial real estate firm, to help facilitate the
site selection process.”
No comments:
Post a Comment