CBD Health

With traditional anxiety medications such as benzodiazepines being highly addictive, there’s been a keen interest in using cannabidiol (CBD) to treat the mental health condition. And there’s a clear need for better treatments, as anxiety currently plagues 18.1% of adults in the US (40 million people). That number has soared over the past year due to the COVID-19 pandemic.

There are two challenges in getting CBD approved for anxiety treatment: a lack of sufficient clinical research into the effects of CBD on anxiety and thus lack of Food and Drug Administration (FDA) approval, and lack of quality and standardization of CBD products currently on the market. Luckily many researchers are looking to solve these issues by conducting proper studies.

Empower Pharm is a Canadian pharmaceutical company that wants to help those seeking cannabinoid treatment for a number of ailments, including anxiety. A Phase I clinical trial is currently in the works to evaluate out how a synthetic CBD tablet (Empower CBD^TM) might help those combatting anxiety.

Aubrey Dan, co-founder and executive chairman of EmpowerPharm, believes that synthetic cannabinoids have the potential to relieve a variety of health issues. By preparing synthetic CBD into an active pharmaceutical ingredient (API), they seek to develop a product that is 99.9% pure.

This would differ greatly from products currently available, as most contain a smaller percentage of CBD. For example, Dan explained, the average CBD oil has between 65% to 80% total cannabinoids. Additionally, EmpowerPharm aims to remove all traces of tetrahydrocannabinol (THC).

A lack of THC is ideal for anxiety, as some individuals have reported it can actually cause anxiety depending on the dose.

EmpowerPharm was able to source a synthesized CBD API that’s been GMP-approved by Health Canada and the FDA. Within the next few months, Health Canada is expected to perform an inspection and, if things go as planned, Dan and his team will begin their Phase I clinical trial.

Empower Pharm hopes to find significant evidence that this formulation can be used as a safe and effective CBD pharmaceutical for anxiety.

Image Credit: Hal Gatewood

Image Source: https://unsplash.com/photos/_jbClosDsD4

Taking care of our teeth typically requires regular dentists visits and keeping some toothpaste and floss handy. But some research suggests that we may also want to consider adding cannabidiol (CBD) to our repertoire of oral care products.

Gum Disease

Gum disease–otherwise known as periodontitis–is a type of infection that can cause harm to the soft tissues in the mouth. If not treated in a timely and appropriate manner, it can damage bones. Periodontitis can lead to tooth loss.

Pre-clinical research has linked CBD to anti-inflammatory effects; in fact, the cannabinoid may help prevent significant inflammation of the gums and help slow tooth loss.[1]

Plaque

Proper oral care involves fighting tooth decay and cavities, both of which can be caused by the buildup of plaque on the teeth. Plaque can develop when food remnants are left on the teeth for a long time. Certain foods can accelerate this process, such as carbohydrates.

Bacteria can thrive in the mouth as a result of the presence of plaque, which can inevitably lead to the production of acids. Acids can damage enamel and may lead to cavities and gingivitis. Brushing with toothpaste and flossing every day can help remove plaque from teeth. But aside from the conventional fluoride-based toothpaste products on the market, CBD may also play a role in getting rid of plaque.

In one small study, dental plaque was collected from participants and treated with various substances, including CBD. Compared to traditional toothpaste, CBD and cannabinoids were shown to rival common oral products in terms of keeping plaque at bay.[2]

Tooth Sensitivity

Tooth sensitivity may not always require a pain reliever to alleviate discomfort, depending on severity. Instead, CBD may help to calm tooth sensitivity to hot or cold. The cannabinoid has been shown to reduce pain by interacting with endocannabinoid receptors and calming inflammation that can contribute to tooth pain.[3]

CBD appears to play a potential beneficial role in oral health, pending greater study, but you should also first speak with your dentist or doctor before adding CBD to your regimen.

Image Credit: Jenny Friedrichs

Image Source: https://pixabay.com/photos/brushing-teeth-tooth-health-dentist-787630/

References

1. Napimoga MH, et al. Cannabidiol decreases bone resorption by inhibiting RANK/RANKL expression and pro-inflammatory cytokines during experimental periodontitis in rats. Int Immunopharmacol. 2009; 9(2):216-222.
2. Stahl V & Vasudevan K. Comparison of efficacy of cannabinoids versus commercial oral care products in reducing bacterial content from dental plaque: a preliminary observation. Cureus. 2020; 12(1):e6809.
3. Russo EB. Cannabinoids in the management of difficult to treat pain. Ther Clin Risk Manag. 2008; 4(1):245-259.

Cannabidiol (CBD) is turning out to be a cannabinoid that appears effective in the treatment of a wide variety of illnesses and conditions. Recently, CBD has shown promise in the treatment of cocaine addiction, which is a worldwide health problem that leads to other illnesses and a marked loss of productivity and quality of life.

Addiction is studied in animal models using a few different methods. One is called self-administration in which a lever can be pushed to access the substance being studied; in this way, researchers can measure drug-seeking behavior. Another method is called conditioned place preference in which a drug is given in a particular environment; when given a choice of environments, a preference emerges for the one in which the drug was received. This is used to measure memory of a drug experience.

A recent study was conducted on adult male mice using conditioned place preference.[1] To evaluate the effects of CBD, researchers administered CBD (10 mg/kg) prior to giving them cocaine, immediately after, and under other conditions.

Researchers found that preference for the cocaine context was reduced 20 days after the administration of CBD. Additionally, CBD modified motor activity and reduced the consolidation of cocaine memory. However, CBD did not have an effect under the other conditions studied.[1]

The findings suggest that CBD could be effective against certain drug-associated memory processes, given its ability to delay both cocaine preference and cocaine memory consolidation.

While the data on CBD and drug-seeking behavior has been mixed, another study that evaluated self-administration of heroin found that CBD also selectively affected long-term memory associated with the drug experience.[2]

There is an urgent need for therapeutics that can safely help people recover from addiction. Further study is warranted to evaluate benefits of using the cannabinoid in the treatment of addiction to cocaine and other drugs of abuse.

Image Credit: Erin Hinterland

Image Source: https://pixabay.com/photos/leaves-cannabis-plant-herbal-5424615/

References

1. Chesworth R. Cannabidiol (CBD) reduces cocaine-environment memory in mice. Pharmacology, Biology and Behavior. 199:173065.
2. Ren Y, et al. Cannabidiol, a nonpsychotropic component of cannabis, inhibits cue-induced heroin seeking and normalizes discrete mesolimbic neuronal disturbances. J Neurosci. 2009;29(47):14764-147649.

San Diego, CA – January 28, 2021 – Creo, an ingredient company with a proprietary platform for producing natural rare cannabinoids without the cannabis plant, announced today that it has produced cannabigerol (CBG) and cannabigerolic acid (CBGA) through fermentation at 12,500-liter scale, with performance matching or exceeding expectations. Creo is the first fermentation-based cannabinoid company to successfully produce finished CBGA.

Rare cannabinoids such as CBG and CBGA (“CBG/A”) are being studied for a range of potential benefits; but they’re only found in small quantities in the plant and can be challenging to extract, making CBG/A hard to produce at scale. To enable broader access to CBG/A, Creo has partnered with biotech industry-leader Genomatica to create a patented fermentation technology platform that produces consistent high-quality, rare cannabinoids, sustainably, at scale, and at a higher purity level than traditional methods. Commercial production and supply are expected to begin in Q2 2021.

“With this demo run, Creo has cemented its leadership position in the emerging market for fermentation-based cannabinoids,” said Creo CEO, Roy Lipski. “This is a very significant milestone for Creo and a major step towards enabling cannabinoid ingredients to reach every household, through wellness, beauty, food and beverage products.”

According to a recent report on cannabinoids and the bio revolution by Raymond James, a financial services firm, the global market for cannabinoids produced by fermentation is estimated to grow from $10 billion in 2025 to $115 billion by 2040.

“We’re excited to be with Creo at the forefront of innovation in this fast-moving industry,” said Nelson Barton, Senior Vice President, Research and Development, Genomatica. “We’re glad to have demonstrated, yet again, Genomatica’s expertise in driving fermentation-based processes from idea to commercial readiness, and to showcase our technology delivering another performance product in health and wellness.”

Creo’s cannabinoids are produced in the USA, in an FDA registered, food cGMP-compliant facility. Creo’s global manufacturing partner has over 4,000 scientists, research chemists, engineers and plant operators dedicated to delivering for customers in a wide range of consumer and industrial markets.

Creo’s promise of greater sustainability is why it makes its cannabinoid ingredients using one of the world’s oldest natural processes – fermentation. Fermentation requires less water, energy and land than the plant-based approaches typically used to extract cannabinoid ingredients.

For more information, visit www.creoingredients.com.

About Creo

Creo is an ingredient company that produces rare and novel cannabinoids using the age-old natural process of fermentation, coupled with cutting-edge technological innovation. Founded in 2016 and based in California, Creo’s mission is to enable the creation of cannabinoid products that help people everywhere while doing less harm to the planet. Creo’s technology partner and major shareholder is industry-leading biotech firm Genomatica. To learn more, visit www.creoingredients.com.

About Genomatica

Genomatica is harnessing synthetic biology to remake the world of everyday products and materials through the power of clean manufacturing. The company is developing more sustainable, higher-performance key ingredients for everyday products, using plants and waste rather than fossil fuels or other non-sustainable sources like palm oil. Genomatica has already commercialized ingredients to make better plastics, spandex and personal care products, and is working on nylon, household cleaners and more. To learn more, visit www.genomatica.com.

Accepting applications from candidates for its new franchise opportunity in the growing CBD industry

Austin, TX (January 28, 2021) Elevated Wellness, an Austin-based pharmacy-produced CBD brand that harnesses the power of science and the safety of pharmacy licensing to create potent, chemical-free CBD products, is excited to announce the launch of its franchise opportunity. Consumer research firm Nielsen conservatively projected that the 2020 market for U.S. hemp-based CBD would be a $2.25 billion to $2.75 billion industry. The company further projects that by 2025, the market will generate $6.9 billion, a threefold increase over five years.

“For anyone who has considered getting into the CBD market, now is the time. The CBD market is crowded and in the absence of regulatory requirements, there are a lot of poor quality, counterfeit products out there. Elevated Wellness offers prospective franchises something that no one else can – products rooted in pharmacy science and created and produced within a government-regulated lab,” said Kush Patel, CEO of Elevated Wellness. “We offer a turnkey, affordable business model that allows franchise partners to step in and successfully operate with the backing of our support team.”

The Elevated Wellness franchise package includes an exclusive territory, access to branding tools, marketing tactics, ongoing operational support, and training.

When legislation passed in 2018 that lifted regulations against industry hemp growth, a slew of poorly organized CBD companies began to sprout. Elevated Wellness differentiates itself from competitors with proprietary sourcing and extraction methods, third party testing, and products generated within a licensed pharmacy. “CBD is medicine so it only makes sense that consumers have access to products made using medical-grade equipment in medically-approved facilities,” stated Chris Adlakha, PharmD, COO of Elevated Wellness. “Our customers can trust they are getting the safe and potent products that meet their health and wellness needs.”

Shivam Patel, CFO of Elevated Wellness, added that the marketing support is a huge differentiator. “Our marketing initiatives are designed to help franchisees succeed,” stated Shivam Patel. “Our team has more than a century of combined experience in the healthcare industry so franchisees will have access to our insights and marketing strategies that will help them grow their businesses and build loyal customers.”

Elevated Wellness products contain pure US-grown organic hemp and are always non-GMO, gluten-free, and mostly vegan certified. All labs in which each Elevated Wellness products are formulated are state-of-the-art ISO-5, USP-795, and USP-800 compliant.

ABOUT ELEVATED WELLNESS

Elevated Wellness is a CBD company founded by health care professionals. They have taken it upon themselves to formulate all of their name brand products in facilities regulated by federal agencies, including the FDA, to ensure the absolute highest quality cannabinoid products that people can trust. Elevated Wellness produces superior quality CBD products and accessories. All CBD products are made with US-grown organic hemp and undergo a stringent quality control process. The Elevated Wellness team is customer service focused with the goal of helping people feel better through chemical-free alternatives like CBD. More information on the franchise opportunity and the Elevated Wellness product line can be found at https://elevatedwellness.com.

Media Contact:

Beth Graham

Scientific journals published approximately 3,500 cannabis research studies in 2020, continuing a trend that has been underway for more than a decade. These data were based on a query of studies listed by the National Library of Medicine through the PubMed.gov database.

The number of reputable cannabis studies published every year in fact has risen exponentially since 2000, according to a 2018 study.[1] Many suspect that this growth is attributable to wider access to cannabis and increased interest in the plant’s therapeutic potential.

“The results of the present study demonstrate an ongoing increase in the number of publications related to cannabis in general and to medical cannabis in particular,” the research team wrote in 2018. “The spike in medical publications on medical cannabis…is impressive and encouraging.”[1]

Their team discovered that, of all publications from 2000 to 2018, the majority of published cannabis research was related to psychiatry, neurology, and oncology. The greatest number of publications focused on cannabinoids and HIV, chronic pain, multiple sclerosis, nausea and vomiting, and epilepsy. The bulk of these studies were conducted by researchers in the US and Canada.[1]

“It is noteworthy that the significant growth in the number of publications on medical cannabis since 2013 parallels legislation permitting the use of recreational cannabis in the states of Washington and Colorado in 2012 and in Alaska and Oregon in 2014, and subsequently in many other countries around the world,” the team noted.

Interest in cannabis, particularly in its therapeutic potential, continues to rise. Although there has been a huge jump in the amount of knowledge available, there are still many questions left to be answered.

Further study may illuminate cannabis’ enormous potential for therapeutic applications.

Image Credit: Nick Youngson

Image Source: https://www.picpedia.org/post-it-note/c/cannabis.html

Reference

1. Treister-Goltzman Y, et al. Trends in publications on medical cannabis from the year 2000. Popul Health Manag. 2019;22(4):362-368.

A recent Food and Drug Administration (FDA) conference looked at cannabidiol (CBD) in the context of biological sex differences..

A few key insights stood out at the conference, which took place in November of last year. For starters, the FDA is not just looking at CBD, but other cannabinoids as well.

“The focus of research for many years has been on tetrahydrocannabinol (THC), and it’s left significant gaps in understanding the properties of the well over 100 cannabinoids and 120 terpenes within the cannabis plant,” said David Shurtleff, PhD, deputy director of the National Institute for Health (NIH)’s National Center for Complementary and Integrative Health.

Doctors are reluctant to even discuss CBD with patients whose curiosity has been piqued by hype surrounding the cannabinoid. This is likely attributed to lack of training or even permission to do so, which speaks to lingering stigma.

Cinnamon Bidwell, PhD, director of the Center for Research and Education Addressing Cannabis and Health at the University of Colorado, Boulder, pointed out that CBD might be more effective against anxiety than tetrahydrocannabinol (THC) in females compared to males.

Pain management was another key point of the discussion. Daniel Clauw, MD of the University of Michigan noted that CBD targets the periphery and central nervous system, which is where chronic pain stems from. Women experience 1.5-2 times more chronic pain than men, according to Dr. Clauw, and they may therefore derive more pain relief from CBD.

As for CBD during pregnancy, despite a lack of data on the matter, the general consensus for pregnant women to stay clear of CBD.

The conference also brought to light the inequality between men and women in clinical trials for cannabinoinds, which has been more focused on men, as with many other types of research.

“NIH has ratcheted up the enforcement of studying sex as a biological variable because women were not included in studies,” noted Betty Jo Salmeron, MD, staff clinician for NIH’s National Institute on Drug Abuse.

A very familiar conclusion was made at the end of the conference–we need more research on CBD in everyone. We can certainly agree with that.

Image Credit: Gerd Altmann

Image Source: https://pixabay.com/photos/equality-male-female-symbol-4070495/

The Company will now have meaningful operations in all 7 cannabis markets that fall within the top 10 most populated states in the U.S.

CHICAGO – Jan. 14, 2021 – Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), one of the largest vertically integrated, multistate cannabis operators in the United States, and Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX:BMWLF) (“Bluma”), a vertically integrated operator in Florida, announced today they have entered into a definitive agreement (the “Agreement”) pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Bluma (“Bluma Shares”) in an all-share transaction that values Bluma at an equity value of US $213 million (the “Transaction”).

“Our strategy at Cresco Labs is to build the most strategic geographic footprint possible and achieve material market positions in each of our states. With Florida, we will have a meaningful presence in all 7 of the 10 most populated states in the country with cannabis programs – an incredibly strategic and valuable footprint by any definition. We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth. Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets,” said Charles Bachtell, CEO of Cresco Labs. “In 2020, we demonstrated the growth and leverage that can be created by focusing only on the most strategic markets, executing high-quality cultivation at scale, and marrying it with a targeted, consumer-focused model of high-volume retail. In 2021, it’s rinse and repeat. We’re using the same playbook to go deeper in strategic states, including Florida – we look forward to bringing our Cresco Labs brands and our Sunnyside stores to the Sunshine State!”

“Bluma’s high-quality cultivation operations, scaled delivery platform, and strategic retail investments combined with Cresco Labs’ track record of execution and capital allocation creates the best path forward to accelerate growth for our business in Florida,” said Brady Cobb, CEO of Bluma. “Our vision for Bluma and One Plant Florida has always been to cultivate remarkable experiences through exceptional cannabis. Our management team took the responsibility to seriously assess potential partners and we’re thrilled to be joining an organization that aligns operationally and shares our passion for creating quality cannabis products.”

Bluma Highlights:

• Bluma Wellness, under its operating subsidiary “One Plant Florida”, has 7 strategically located dispensaries with 8 more locations under legal control and planned to open.
• One Plant stores rank 2nd highest in per-store sales of smokable flower in Florida.
• One Plant stores derive 15% of revenue from home delivery (among the highest in Florida).
• 54,000 sq. ft. of cultivation space (with planned expansion of cultivation capacity, processing lab, and edibles kitchen).
• One Plant dispensaries act as delivery hubs supporting the fleet of 15 delivery vehicles offering 24-48 hour statewide service.

Florida Market Highlights:

• 3rd most populous state in the U.S. with 21.7 million people1.
• 2nd largest growth of state residents in the U.S. in 20201.
• Over 450,000 registered patients in the medical program2.
• A regulatory environment that offers a margin profile through forced vertical integration that is immediately accretive to Cresco Labs’ overall business.
• Significant future growth potential once adult use and/or wholesale sales are introduced.

Financial and Legal Advisors

Cowen is acting as financial advisor to Cresco Labs and provided a fairness opinion to the Company’s board of directors. Bennett Jones LLP is acting as legal advisor to Cresco Labs.

Clarus Securities Inc. and INFOR Financial Inc. are acting as financial advisors to Bluma and each provided a fairness opinion to the board of directors of Bluma. Gowling WLG (Canada) LLP is acting as legal advisor to Bluma.

Terms

Under the terms of the Transaction, shareholders of Bluma will receive 0.0859 of a subordinate voting share of Cresco Labs (“Cresco Shares”) for each Bluma Share held (the “Exchange Ratio”), subject to adjustment as described below. The Exchange Ratio implies a price per Bluma Share of approximately US $1.12, representing a premium of approximately 29% based on the closing price of Bluma Shares on the CSE as of January 13, 2021. The Transaction will be completed by way of plan of arrangement under the Business Corporations Act (British Columbia). The Exchange Ratio is subject to adjustment in the following circumstances: (i) if the 5-day volume weighted average price of Cresco Shares immediately preceding the 2nd business day prior to the closing of the Transaction (the “Cresco Closing Price”) is below US$9.99 but greater than US$7.00, the Exchange Ratio per Bluma Share will be calculated as US$0.86 divided by the Cresco Closing Price; and (ii) if the Cresco Closing Price is less than or equal to US$7.00, the Exchange Ratio will be fixed at 0.1229 Cresco Shares for each Bluma Share.

The Transaction is subject to, among other things, the approval of Bluma shareholders at a special meeting (the “Special Meeting”), and receipt of all required CSE, regulatory and court approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. Additional details of the Transaction will be provided to Bluma shareholders in an information circular to be mailed in connection with the Special Meeting. It is currently anticipated that, subject to receipt of all required approvals, the Transaction will be completed by the start of the second quarter of 2021.

Recommendation of Bluma Board

The board of directors of Bluma formed a special committee of independent members (the “Special Committee”) to review and recommend the approval of the Transaction by the board of directors. The Special Committee obtained fairness opinions from each of INFOR Financial Inc. and Clarus Securities Inc. stating that, as of the date of the opinions and subject to the assumptions and limitations contained in such opinions, the consideration to be received by holders of Bluma Shares pursuant to the Transaction is fair, from a financial point of view, to the holders of Bluma Shares. Based on the advice and recommendation of the Special Committee, the board of directors of Bluma determined that the Transaction is fair to the shareholders of Bluma, that the Transaction is in the best interests of Bluma and unanimously recommends that Bluma shareholders vote in favor of the resolution to approve the Transaction at the Special Meeting. Shareholders of Bluma holding approximately 40% in aggregate of Bluma Shares have executed voting and support agreements in favor of the Transaction. Certain Bluma shareholders will also agree not to transfer a portion of their resulting Cresco Shares for up to an eight-month period following closing of the Transaction.

About Cresco Labs

Cresco Labs is one of the largest vertically integrated, multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods (“CPG”) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprised of some of the most recognized and trusted brands including Cresco, Remedi, High Supply, Cresco Reserve, Good News, Wonder Wellness, FloraCal Farms and Mindy’s Chef Led Artisanal Edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry. Learn more about Cresco Labs at CrescoLabs.com.

About Bluma Wellness Inc.

Bluma Wellness Inc. owns and operates a vertically-integrated, licensed medical cannabis company in the State of Florida doing business as “One Plant Florida.” One Plant Florida cultivates, processes, dispenses and retails medical cannabis to qualified patients in the State of Florida through multiple retail dispensaries and an innovative next-day door-to-door e-commerce home delivery service, thereby offering convenient access for its customers and meeting the demands of an evolving retail landscape. Bluma Wellness plans to continue expanding its cultivation and distribution operations as the Florida market grows and may enter into other US states where the production, distribution and use of cannabis is permitted under state law.

Forward-Looking Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s and Bluma’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the control of the Company and Bluma. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms.

The forward-looking information and forward-looking statements in this press release includes statements about: the timing and completion of the Transaction and the acquisition of all of the issued and outstanding Bluma Shares, the timing and anticipated receipt of required regulatory, court and shareholder approvals for the Transaction and other customary closing conditions; the anticipated benefits of the Transaction, including the corporate, operational and financial benefits, the parties’ strategic plans and expansion and expectations regarding the growth of the Florida cannabis market.

Developing forward-looking information and forward-looking statements involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to the Company and Bluma and others that apply to the industry generally. Such assumptions include but are not limited to the ability of the combined entity to execute its business plan, the continued growth of the cannabis market in those U.S. states where the cultivation, distribution and use of medical or recreational cannabis is legal and in particular, in the State of Florida, that any changes in US federal or state laws will not adversely affect the businesses or operations of the parties and the ability of the Company to successfully integrate Bluma into its operations.

The forward-looking information and forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information and statements. Such factors include, but are not limited to:

• the ability of the Company and Bluma to receive, in a timely manner, the necessary regulatory, court, shareholder, stock exchange and other third-party approvals to consummate the Transaction;
• the ability of the Company and Bluma to satisfy, in a timely manner, the other conditions to the closing of the Transaction;
• the ability to complete the Transaction on the terms contemplated by the definitive arrangement agreement and other agreements, including the support agreements, or at all;
• the ability of the Company to realize the anticipated benefits of the Transaction and the timing thereof;
• the consequences of not completing the Transaction, including the volatility of the share prices of the Company and Bluma;
• negative reactions from the investment community and the required payment of certain costs related to the Transaction;
• actions taken by government entities or others seeking to prevent or alter the terms of the Transaction;
• potential undisclosed liabilities unidentified during the due diligence process;
• the interpretation of the Transaction by tax authorities;
• the focus of management’s time and attention of both the Company and Bluma on the Transaction and other disruptions arising from the Transaction;
• a resurgence in cases of COVID-19, which has occurred in certain locations and the possibility of which in other locations remains high and creates ongoing uncertainty that could result in restrictions to contain the virus being re-imposed or imposed on a more strict basis, including restrictions on movement and businesses;
• the success of new COVID-19 workplace policies and the ability of people to return to workplaces;
• risks relating to cannabis being illegal under US federal law and risks of US federal enforcement actions related to cannabis activities;
• negative changes in the political environment or in the regulation of medical cannabis in the State of Florida;
• negative shifts in public opinion and perception of the cannabis industry and cannabis consumption;
• risks of product liability and other safety-related liability as a result of usage of the Company’s or Bluma’s cannabis products;
• the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses;
• crop failures;
• litigation;
• currency fluctuations;
• increasing competition; and
• loss of key management and/or employees.

Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking information and forward-looking statements contained in this press release are made as of the date hereof. Except as required by applicable securities law, the Company and Bluma undertake no obligation to update publicly or otherwise revise any forward-looking information or forward-looking statements or the foregoing lists of factors affecting those statements, whether as a result of new information, future events or changed circumstances.

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated December 3, 2019 to its short form base shelf prospectus dated July 25, 2019.

1 https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html
2 https://s27415.pcdn.co/wp-content/uploads/ommu_updates/2021/010821-OMMU-Weekly-Update.pdf

COVID-19 has left no industry untouched. And looking back as 2020 has closed, the effects of on the hemp and cannabidiol (CBD) industry have been both direct and indirect. That said, the industry continues to march on, and many businesses are optimistic about the future.

Industrial Hemp Farmers

One of the biggest impacts the virus has had on the many farm operations out there is how work gets done. Front Range Biosciences, a group of farmers, researchers, and scientists that produces cannabis, coffee, and other desirable crops, has put emergency measures in place to combat the spread of COVID-19 while they continue operations. These measures include enhanced sanitary protocols, staggering shifts, and the strict use of masks.

Another effect the virus has had on cultivation efforts is limiting hemp cultivation equipment and supplies. Many of these necessary products come from China, which saw a closing of its ports in early 2020. This led to months-long delays in the shipping and receiving of these important agricultural products.

Product Distribution

When COVID-19 began spreading around the world, many feared that product distribution routes would be negatively affected and supplies would be limited. These fears were indeed realized, and there was a slowing of CBD shipments and other hemp products around the world initially. Due to demand for products made of industrial hemp, there was a rather quick uptick in shipments after the initial drops earlier in the year, according to Sarah Roberts, CEO of CBD logistics company SovereignPort.

Retail Sales

COVID-19 has negatively affected the buying power of millions of Americans, and this has led to a decrease in the purchase of retail hemp/CBD-derived products. However, many online businesses have enjoyed robust sales, as many consumers have taken to stockpiling hemp-derived CBD products.

Given the importance and desirability of hemp-derived products, many players in the industrial hemp farming sector remain optimistic they will not only weather the effects of the virus but also thrive as time goes on.

Image Credit: Erin Stone

Image Source: https://pixabay.com/photos/cannabis-weed-pot-ganja-hemp-5330975/