Exclusive focus on CBD product sales and cannabinoid medicine
TORONTO, May 16, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD extraction, product development and distribution, announced today that the Company is restructuring its assets towards the potential $22 billion American CBD industry, and is focusing exclusively on hemp-derived cannabinoid extraction, and manufacturing and distributing proprietary medical grade products.
"Alternate Health's foundational goal has always been to lead the cannabis industry in innovation and new product development, using the research garnered through our software to effectively and efficiently serve patients," says Howard Mann, CEO of Alternate Health. "With our recently announced $20M transaction with Blaine Labs, an FDA-approved production facility, we are uniquely poised to capture market share in this emerging industry. Since joining Alternate Health in December 2018, I have evaluated the various courses of business, and I feel CBD opportunities represent the Company's most significant and attainable business model."
The Future of the Cannabis Industry
According to reports by market research firm Brightside Data, reported in Inc. Magazine, the U.S. CBD industry is estimated to reach $22 billion by 2022. The industry is currently valued at $591 million, but industry analysts expect demand to grow as stricter government regulations and oversight boost consumer confidence in CBD products. A key development will be the upcoming launch of national standards in product manufacturing, moving towards FDA-regulation and cGMP standards.
Alternate Health was founded on the assumption that a value-added approach is the best strategy to capture the medical cannabis industry. Fundamentally, cannabis is an agricultural product, and as the international supply of cannabis grows, we expect profit margins to reflect this fact. The Company believes the long-term future of the industry will be based not on cultivation, but rather on extraction, product manufacturing and distribution.
Focus on CBD and Cannabinoid Medicine
Alternate Health was created in 2014 to provide software solutions to the nascent cannabis industry. Through the Company's Electronic Medical Records (EMR) and Patient Management systems, Alternate Health has built an extensive physician and patient base in key markets across North America. The Company's network is a key synergy that led to the acquisition of Blaine Labs, a leading FDA-approved and cGMP-certified medical product manufacturer based in California.
By focusing the Company's expertise in extraction on hemp-derived cannabinoids, Alternate Health expects to turn Blaine Labs into a leader in CBD products as well. The Company's existing experience with FDA-approved and cGMP-certified manufacturing is a considerable advantage to Alternate Health's expansion into the CBD industry, staying ahead of tightening regulations and standards. Blaine Labs also has distribution relationships with major retailers, including Walmart, CVS, Amazon and Walgreens, with the potential for significant growth using Alternate Health's inventory management and point-of-sale systems.
Restructuring Recreational and Adult-Use Cannabis Assets
Alternate Health's focus on value-added products and services led the Company to explore opportunities in California's craft cannabis industry, including extraction, product development and distribution. The Company has developed and acquired assets in this sector, including licenses and cannabis products and brands. But Alternate Health has held off commercializing these assets, assessing developments in local California regulations and the relationship between state governments and federal enforcement.
The Company believes it is best to focus the extraction and software assets, including inventory management and point-of-sale, towards the CBD industry. Currently, the black market continues to be strong, while state legislation remains weak. These factors have created an uncertain industry, prone to misrepresentation. Alternate Health is currently evaluating the best options for either restructuring or selling assets to move the Company's business completely in line with a CBD focus.
A Leaner, More Profitable Alternate Health
Alternate Health expects the immediate impact of the repositioning will bring significant cost-savings as we push for greater efficiencies and fewer redundancies in our operations. The Company's acquisition of Blaine Labs provides a solid revenue base and product expertise to anchor Alternate Health's pivot into the global CBD industry. In-house extraction and software distribution are expected to maintain generous margins, while sales growth will be boosted from new markets in both Alternate Health's existing physician network and export opportunities across Latin America.
"Alternate Health is focusing all our assets and expertise in creating immediate value for our shareholders," says Howard Mann. "We believe the CBD industry represents the best opportunities for the Company."
Based on the Company's existing assets in extraction, product manufacturing and software-driven distribution, Alternate Health expects few delays in launching new products in both the United States and Latin America. The Company has an advantage with Blaine Labs' experience in FDA-approved products and cGMP manufacturing and Alternate Health expects to leverage these assets to move ahead of the competition.
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) an international leader in the CBD industry, including extraction, product development and distribution. Alternate Health's industry-leading software systems provide the platform for the company's diverse operations, including blockchain tax collection systems, CBD product distribution, hemp-derived extract manufacturing and the first medial cannabis online portal approved by the Florida Department of Health. Through Alternate Health's subsidiary, Blaine Labs, the Company is a leader in cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens.
Alternate Health's corporate office is located in Toronto, Canada, with additional offices in Venice, California, and San Antonio, Texas. The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders. Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., and Canopy Growth Corporation. For more information about Alternate Health Corp., visit www.alternatehealth.com.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects, anticipated growth and potential revenues are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Alternate Health Corp.
For further information: Investor Contact: Jim Griffiths | Investor Relations, Jim Tykoliz | Company Director, 1.416.607.5757