Pivot Pharmaceuticals Inc. (OTCQB:PVOTF) (CSE: PVOT), and its wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. (“PGS” or “Pivot Green Stream”), are pleased to announce that Pivot has signed a binding letter of intent to establish a California-based entity (“PGS-California”) in order to accelerate the monetization of the Ready To Infuse Cannabis (“RTIC”) technology as previously announced on December 20, 2017. Pivot plans to build manufacturing facilities in legal cannabis markets throughout North America and Europe, obtain the necessary licensures, and launch products using RTIC technology which transforms cannabis oil into powder for infusion. The letter of intent is subject to customary conditions including regulatory approval, the negotiation of a definitive agreement and satisfactory completion of due diligence.
Pivot seeks to gain market share in the food and beverage segment of the cannabis industry in legal markets in the near term through in-house brand development and by providing co-packing services for other edible brands through strategic partnerships. Co-packing services are an underserved, high-demand segment of the cannabis industry on the B2B side and will help further the awareness and visibility of the “Made with Instant THC” & “Made with Instant CBD” brands.
Pivot will appoint Ross Franklin and Patrick Rolfes to executive leadership roles within PGS-California to help execute its business strategy of conducting research, development and commercialization of cannabinoid-based products. Mr. Rolfes states that “Pat and I look forward to working with Pivot to monetize the RTIC patents. Our facilities will be able to produce a variety of food and beverage products such as capsules, K-Cups, stick packs, baked mixes, liquid shots, protein shakes, topicals, lotions, and bottle beverages.”
Dr. Patrick Frankham, CEO of Pivot Pharmaceuticals, stated that “Pivot continues to execute on its business strategy to upscale cannabis oils into premium healthcare and nutritional products. The California cannabis market is estimated to be worth $7B annually making it an attractive territory for Pivot’s pipeline of products and technologies. We are also delighted to announce that Ross Franklin will join our Scientific Advisory Board. His extensive cannabis product development and commercial expertise will be a great asset to Pivot as we enter the US market.”
Following the passing of Adult Use of Marijuana Act (Prop. 64), cannabis will be legal in California beginning January 1, 2018. California's main regulatory agencies are the Bureau of Cannabis Control (BCC), Department of Food and Agriculture, Department of Public Health and Cannabis Regulatory Authority (CRA). PGS-California will apply for all necessary licenses with the appropriate agencies.
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