U.S. Subsidiary Pivot Naturals LLC To Submit Applications For Cannabis Business Licenses
VANCOUVER, May 23, 2018 /PRNewswire/ – Pivot Pharmaceuticals Inc. (CSE: PVOT / OTCQB: PVOTF / FRA: NPAT) (“Pivot” or the “Company”) is pleased to announce that its wholly-owned U.S. subsidiary, Pivot Naturals LLC, (“PNL”), has executed a lease agreement for a manufacturing facility in Costa Mesa, California’s Measure “X” Zone. Pivot Naturals will immediately submit an application to obtain a Marijuana Business Permit, as well as a Conditional Use Permit and a Business License. Businesses in Costa Mesa’s Measure “X” Zone that meet the requirements for operation can conduct wholesale medical marijuana distributing, manufacturing, processing and transporting as well as establish research and development and testing laboratories.
Pivot intends to use this building to create a state-of-the-art GMP manufacturing facility to begin production of its suite of patented products to be marketed under the brand name ‘Pivot Naturals’. PNL will acquire high quality cannabis oil and isolates and use its patented method to convert oil-to-powder (“RTIC”- Ready To Infuse Cannabis) to launch finished products such as capsules, stick packs and bulk additives for sale and distribution in the California market. RTIC is a patented technology that enables the Company to cost-effectively turn cannabis oil into dry powder, which can subsequently be used in their health and wellness products, baking additives, pet products, and B2B beverage and edibles ingredients. A portion of the manufacturing facility has been earmarked to create production lines of topical creams and oral solutions utilizing the Company’s additional patented drug delivery technologies.
Mr. Patrick J. Rolfes, President of Pivot Naturals, LLC stated “We are excited to have secured our manufacturing facility, which will also serve as our U.S. Corporate offices, in Costa Mesa, California. We can now focus on bringing Pivot’s high-quality and technically advanced products to California consumers through our established relationships with state-wide licensed distributors. I expect that we will receive the necessary local and state manufacturing licenses in July 2018 and complete production equipment installation by August 2018. Pivot Naturals’ capsules, stick packs and bulk powder should be on the shelves of dispensaries in California by Q4 2018. In addition, we have been inundated by requests to supply our patented RTIC powder for white label products and we fully intend to continue to sign manufacturing and supply agreements with respected cannabis brands in our state.”
California, the largest state economy in the US and the sixth largest economy in the world, is also the largest marijuana market on the planet with annual legal sales totaling approximately $2.8 billion in 2016. January 1, 2018 shepherded both California’s economy and its cannabis market into a new era of growth with the legalization of the world’s largest adult-use recreational market. A recent BDS Analytics report says California’s legal cannabis market could grow to $3.7 billion in 2018 and reach $5.1 billion to rival the beer market by 2019.
“Securing a manufacturing facility in California is a major milestone for Pivot, enabling the Company to generate revenue in 2018, in the largest cannabis market in the world,” said Dr. Patrick Frankham, CEO of Pivot Pharmaeuticals. “Mr. Rolfes and his team continue to successfully execute our U.S. business strategy.”
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot’s wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. (“PGS” or “Pivot Green Stream”), conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals. Pivot’s wholly-owned U.S. subsidiary, Pivot Naturals, LLC, based in Costa Mesa, California, will manufacture and supply finished powderized cannabis products such as food additives, capsules, bulk powder and stick packs to the California market. PGS has acquired worldwide rights to “RTIC” Ready-To-Infuse Cannabis powder to oil technology, BiPhasix™ Transdermal Drug Delivery platform technology (topical), Solmic Solubilisation technology (oral) and Thrudermic Transdermal Nanotechnology (transdermal) for the delivery and commercialization of cannabinoid, cannabidiol (CBD), and tetrahydrocannabinol (THC)-based products. PGS’ initial product development candidates will include topical treatments for women’s sexual dysfunction (PGS-N005), as well as psoriasis (PGS-N007), and an oral product (PGS-N001) for cancer supportive care. For more information please visit www.PivotPharma.com
Cautionary Statement
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as anticipate, believe, estimate, expect, intend, and similar expressions, as they relate to Pivot Pharmaceuticals Inc., Pivot Green Stream Health Solutions Inc., Pivot Naturals, LLC, or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, such as the failure to meet the conditions imposed by the CSE or other securities regulators, the level of business and consumer spending, the amount of sales of Pivot’s products, the competitive environment within the industry, the ability of Pivot to continue to expand its operations, the level of costs incurred in connection with Pivot’s expansion efforts, economic conditions in the industry, and the financial strength of Pivot’s customers and suppliers. Pivot does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
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SOURCE Pivot Pharmaceuticals Inc.
