Passage of the U.S. Farm Bill and legalization of hemp to unlock a multi-billion-dollar wellness market for CBD
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OTTAWA, Dec. 12, 2018 /CNW Telbec/ - LiveWell Canada Inc. ("LiveWell" or the "Company"), (CSE: LVWL), anticipates the passage of the U.S. Agriculture Improvement Act of 2018, known as the Farm Bill, will unlock a multi-billion-dollar market for wellness products made from hemp CBD and other hemp-derived cannabinoids.
The Farm Bill, which passed the Senate 87-13 on Tuesday, Dec. 11, 2018, will legalize industrial hemp, including interstate commerce for hemp and hemp-derived CBD. The measure must still pass one final vote in the House of Representatives before being sent to President Trump to sign into law. Pundits expect that to happen by the end of the year.
With the legal ambiguities lifted, LiveWell Canada anticipates tremendous market demand for CBD in 2019.
Legalization and acceptance of CBD for its health and wellness benefits is accelerating at a rapid pace globally. CBD is most commonly being used for anxiety, insomnia, pain and nausea, but is being investigated as a treatment for other conditions. Earlier this year, the U.S. FDA approved the CBD drug, Epidiolex, for the treatment of childhood epilepsy.
The World Health Organization has also recommended descheduling CBD as a controlled substance among its 194-member states. The Brightfield Group of Chicago forecast the market for CBD from hemp could reach US$22 billion by 2022.
"We believe the market for hemp CBD could exceed the industry forecasts because of the huge shift to self-directed care and wellness among consumers. With the legal barriers and ambiguities removed, there will be greater awareness and acceptance of CBD as an alternative product for functional outcomes," says David Rendimonti, President and CEO of LiveWell Canada. "We are only seeing the tip of the iceberg of what this industry will become."
About Hemp CBD
CBD, short for cannabidiol, and other cannabinoids, can be extracted from both hemp and cannabis, but CBD derived from hemp is more economical to produce and faces fewer legal restrictions worldwide than cannabis. That's because of its low THC content, the ingredient that makes you high.
There are three different strains of cannabis—Cannabis sativa L., Cannabis indica and Cannabis ruderalis. Years of selective cultivation of Cannabis sativa L. has produced two sub-types of the strain: medical cannabis (marijuana) and industrial hemp. The two plants differ in terms of appearance and cannabinoid composition, most notably in that hemp possesses only trace amounts of the THC found in medical cannabis.
The anticipated passage of the Farm Bill would legalize all products made from industrial hemp, including CBD, if they contain no more than 0.3 percent THC.
About LiveWell Canada
LiveWell is strategically positioned to be a leader in the emerging CBD market. As announced on Dec. 3, 2018, LiveWell has signed a binding letter of agreement to merge with Vitality CBD Natural Health Products Inc. (the "Merger"), one of the largest industrial hemp cultivation and extraction operations in North America, with approximately 20,000 acres harvested in 2018. The Merger will bring together U.S. and Canadian assets to create one of the first fully integrated, large-scale hemp CBD companies: Production capacity of CBD isolate anticipated to reach 3,000 kilograms per day by mid-2019; CBD research, product development and GMP manufacturing facilities; international sales and distribution networks, and experienced leadership.
LiveWell's team of researchers and scientists recently completed a seven-month study and major market report on CBD, has published a white paper on CBD from Industrial Hemp, is working on CBD product formulations and partnering with other research entities.
On Oct. 5, 2018, LiveWell announced it was acquiring Acenzia Inc., a Windsor, Ont.-based developer and manufacturer of nutraceutical products for the health and wellness market. Acenzia specializes in patented therapeutics specific to particular medical conditions and personalized diagnostics. It also offers a manufacturing facility that is certified by Health Canada, is FDA registered and has NSF certifications for GMP, for Sport, and is USDA-Certified Organic. The acquisition is expected to close in the near future.
LiveWell is also a late-stage cannabis cultivation applicant and has greenhouses under construction in Ontario and Québec.
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements about the Company and its business. Often, but not always, forward-looking statements can be identified by the use of words such as "plan", "continue", "expect", "schedule", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements (including negative variations) that certain events or conditions "may" or "will" occur. Such statements are based on the current expectations of management. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of unknown and known risk factors and uncertainties affecting the Company. Further, the Company cautions that this foregoing list of material factors is not exhaustive, and readers are encouraged to read all Risk Factors disclosed in the Company's Management Discussion & Analysis dated October 26, 2018.
In respect of the forward-looking statements and information concerning the anticipated benefits and completion of the Merger, including the anticipated timing for completing the definitive agreement, the Company has provided such statements and information in reliance on certain assumptions that it believes are reasonable at this time. Further, there can be no assurance that the Merger will occur, or that it will occur on the terms and conditions contemplated in the binding letter of agreement. Following the due diligence, the Merger could be modified, restructured or terminated.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For more information, visit livewellcorp.com
SOURCE LiveWell Canada Inc.
For further information: Media, English - Deborah Stokes, 819 576-3789 - [email protected]; French - Dorra Jemail, 819 718-2042, [email protected]; Investors, Nicole Marchand - 416-428-3533, [email protected]; Company, David Rendimonti, President and CEO, Steven Archambault, Chief Financial Officer, Tel: 819 718-2042