TORONTO, April 24, 2018 /CNW/ - Xanthic Biopharma Inc. (formerly Aurquest Resources Inc.) ("Xanthic", CSE: xTHC) is pleased to provide a business update on the licensing and strategic partnership agreement (the "Agreement") with Avitas CBD Water, LLC ("Avitas") that was previously announced on March 21, 2018.
Avitas' use of CBD derived from non-cannabis and non-hemp sources has allowed expedited product development and commercialization with a very low capital investment. Avitas' management team has made significant progress in the weeks since entering the partnership with Xanthic. Label artwork has been finalized, which prominently features the "Powered by Xanthic" brand. Avitas CBD water is being produced at a nationally recognized third party soft drink bottling facility, with the first production expected to be complete in early May. Avitas CBD water will be competitively priced with other infused waters.
Avitas' first production run will be rolling out across the states of Washington and Oregon. Avitas has already secured distribution agreements with customers representing over 700 retail locations. These locations include premium grocery retailers and convenience stores.
Ryan Maxson, co-founder and CEO of Avitas, commented, "We have been thrilled by the response to Avitas CBD water. We are already expanding our efforts to approach customers in additional markets, and looking to have distribution in more than 1000 retail locations by the end of June. We appreciate the support that we have received from Xanthic, and are proud to be partnered with them."
Tim Moore, CEO of Xanthic, also commented, "Avitas' management team has done a terrific job of making early progress. We see huge potential for Avitas, and will continue to work with their management to build that business as a vehicle to expand awareness of the Xanthic brand."
Avitas has the secured access to CBD derived from a non-cannabis and non-hemp sustainable source for use in bottled water and related beverages. Due to the source of this CBD, Avitas' strategy is to distribute its products outside the cannabis dispensary network into broad based retail channels such as corner stores, gas stations, grocery stores and other retail locations. For more information visit www.avitaswater.com.
Xanthic, through its wholly-owned operating subsidiary, Xanthic Biopharma Limited, provides valuable intellectual property to cannabis industry participants, enabling its strategic partners to produce high quality, innovative, non-combustible cannabis, and cannabis-infused products which deliver consistent THC and/or CBD levels and improved bioavailability. Using a proprietary process, Xanthic allows its strategic partners to deliver superior cannabinoid solubility, improved bioavailability, accurate micro-dosing and greater consistency versus competitive infused products. Through its investment in Avitas CBD Water, Xanthic has access to non-cannabis derived CBD-infused products that qualify for distribution outside of the cannabis dispensary network and into mainstream retail.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. There is no assurance that the Agreement with Avitas will successfully produce benefits for Xanthic. Although such forward-looking statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
SOURCE Xanthic BioPharma