LiveWell Finalizes Hemp CBD Supply Agreement with Tilray
-LiveWell to supply a monthly minimum of 150 kilograms of wholesale CBD-
Ottawa, Ontario, March 14, 2019 (GLOBE NEWSWIRE) -- LiveWell Canada Inc. ("LiveWell" or the “Company"), (CSE: LVWL), today announced it has finalized its CBD supply agreement with Tilray Inc. (NASDAQ: TLRY). LiveWell will supply Tilray with a monthly quantity of up to 300 kilograms of hemp-derived CBD isolate, or an equivalent amount of full-spectrum CBD extract. The Company expects to begin shipping Tilray its product during the second quarter of 2019.
As part of its diligence process, Tilray conducted laboratory testing on the Company’s product, as well as performing a site visit to the Company’s manufacturing facility in Eureka, Montana. The results of this due diligence met Tilray’s product and manufacturing standards.
We’re thrilled to have the opportunity to partner with Tilray, one of the best known and most stringent companies in the cannabis and cannabinoid space,
said David Rendimonti, President and CEO of LiveWell Canada.
As we’ve previously outlined, one of our key priorities is capturing greater market share in wholesale. The finalization of this milestone agreement is a strong validator of our ability to produce and supply some of the highest-quality hemp-derived CBD available on the market. We look forward to a strong continuing relationship with Tilray.
Under the terms of the agreement, LiveWell will initially supply Tilray with up to 150 kilograms per month of wholesale CBD isolate, or an equivalent amount of full-spectrum CBD extract, cultivated and processed from hemp, and meeting jurisdictional regulations. As of August 2019, the amount increases to 300 kilograms per month, with an option to increase to 500 kilograms per month. The Agreement is in effect until January 31, 2020, at which time it will automatically renew for successive 12-month terms unless either party has opted out of such renewal.
LiveWell continues to leverage its leadership in the wholesale CBD market. In addition, the Company aims to penetrate the consumer products space in the second half of 2019.
LiveWell is an innovative Canadian health and wellness company focused on the advanced research of CBD and other cannabinoids. Utilizing state-of-the-art manufacturing facilities, LiveWell aims to cost-effectively extract and refine large quantities of hemp-derived CBD, better enabling it to develop, market and distribute wholesale and consumer products.
Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in twelve countries spanning five continents.
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 Tilray’s CBD supply agreement, and the timing for penetrating the consumer products space, the Company has provided such statements and information in reliance on certain assumptions that it believes are reasonable at this time.
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.