Alternate Health targets Mexican and Latin American CBD industry with joint venture agreement
TORONTO, May 9, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in technology and extraction solutions for the regulated cannabis industry, announced today a key step forward in the Company's pharmaceutical-grade CBD product manufacturing strategy, having signed a joint venture agreement with Oltecate Enterprises ("Oltecate"), a COFEPRIS-licensed Mexican CBD distributor, with an eye for expansion throughout Latin America.
Alternate Health's expansion into the Latin American CBD market complements the Company's recent US$20 million acquisition of Blaine Labs, previously announced on May 5, 2019. With 23 years of experience producing FDA-approved and cGMP-certified medical products, Blaine Labs is uniquely positioned to manufacture a wide range of CBD products that meet international export standards. As Alternate Health rapidly expands Blaine Labs CBD product line, the Company expects Mexico to be a key growth market for future sales and a jumping off point for further distribution throughout Latin America.
"With this acquisition, we are taking another major step in consolidating the global CBD market," says Howard Mann, CEO of Alternate Health. "We now boast the addition of nation-wide Mexican CBD licenses to our hemp-based medical product assets, including extraction, distribution and product development."
Based in Tecate, Baja California, Mexico, Oltecate's headquarters are strategically located along the US-Mexican border with California. Oltecate currently holds four federal CBD licenses issued by COFEPRIS, the Mexican equivalent of the U.S. Food and Drug Administration (FDA). Currently, Mexican law prohibits cannabis and hemp cultivation and extraction, but imports of CBD products are legal with the appropriate COFEPRIS license. These licenses allow Alternate Health to import and distribute products in numerous growing markets across Mexico, including:
Medical and Pharmaceutical Products: Medical, sanitary and hygienic CBD products and CBD dietary supplements, including veterinarian uses in animals.
Non-Medical Products: Cosmetic and topical products including makeup, lip pencils, sprays, oils and creams.
Other Medical Products: Dermatological patches for medical uses.
Drinks: Bottled water and water-based and water-soluble CBD products.
"The Mexican CBD market offers tremendous opportunities for growth and expansion," says Mr. Federico Cabo, owner of Oltecate Enterprises. "With this agreement, Alternate Health and Oltecate are at the forefront of the Latin American CBD industry."
Oltecate's founder, Federico Cabo, has agreed to join Alternate Health's Board of Directors, offering the Company decades of experience and deep connections throughout Mexico's beverage and alcohol industry, including major retail chains. These relationships will be essential as the Company targets a strong retail presence across the country and expands across other major markets in Latin America. Within 90 days, Alternate Health is targeting product rollout in Mexican stores.
Alternate Health also intends to launch its CanaPass Patient Management System in Latin America's medical CBD market. The Company intends to use its expertise in Electronic Medical Records (EMR) and medical education modules to build a direct doctor-to-patient distribution system, based on the U.S. model developed Dr. Robert Blaine of Blaine Labs in Santa Fe Springs, California. Alternate Health is also preparing to register its products with COFEPRIS to allow insurance reimbursement for medical patients.
Terms of the Agreement
Under the agreement, the parties will be establishing a Mexican corporation with the name of Alternate Health Latin America S. de. R. L. de. C.V. ("AHLA"). The company will be 55% owned by Alternate Health and 45% by Oltecate. AHC will source products in California to be imported by Oltecate using its Licenses for distribution by AHLA. On closing, as consideration for granting AHLA exclusive distribution rights for product imported with its licenses, Federico Cabo, owner of Oltecate Enterprises, will receive 1,500,000 common shares of Alternate Health Corp. Mr. Cabo will provide logistic capabilities and an estimated 18,000 square foot warehouse to the company moving forward, and provide sales management and regulatory support on an ongoing basis.
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international cannabis company, focusing on technology and value-added services. Alternate Health's industry-leading software systems provide the platform for the company's diverse operations, including blockchain tax collection systems, cannabis distribution, extract manufacturing and the first medical cannabis online portal approved by the Florida Department of Health.
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