VANCOUVER, British Columbia, Sept. 05, 2019 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF), a growth oriented and diversified international cannabis company, is pleased to provide the following operational updates and sales guidance pertaining to the Company’s 50 per-cent owned Joint-Venture (the “JV”), Eurasia Infused Cosmetics Inc. (“Eurasia Infused”):
- YuShop Global (HK) Limited (“YuShop”) product listings for CBD-infused and Canadian organic hemp-oil derived CPGs:
• Permits immediate access to China/Hong Kong’s burgeoning CBD-infused CPGs marketplaces;
• Hyper-targeting of 1.08-billion WeChat users by way of YuShop’s proprietary marketing algorithms, suite of automation tools and influencer campaigns; - Pre-sale orders to be fulfilled via YuShop’s e-commerce portal/mobile application, equipped with an active user footprint of over 500 million consumers
• Expanded marketing and distribution initiatives to be announced in the coming weeks, including the introduction of high-traffic retail channel partners, as well as, 1,500 luxury health spas; - Initial three SKUs fully customized/import certified for the Chinese/Hong Kong marketplaces packaged for shipment from the Company’s co-packer to fulfill anticipated pre-sales orders;
- Continued product development of a suite of CBD-infused CPGs and nutraceutical product formulations;
- Eurasia Infused is tactically positioned to capitalize on the continued expansion of Asia’s CBD-infused CPG geometric growth story due to:
• Diverse portfolio of CBD-infused and/or hemp-oil-derived CPG personal care products;
• 10 years' experience specializing in the importation and customization of premium Canadian consumer packaged goods (CPGs) for the Chinese marketplace; - Forecasted Q2 2020 rollout of Whole Hemp Health-branded pop-up shops, further expanding the Company's downstream footprint and brand presence in an economical and contemporary manner;
- AgraFlora’s Hong Kong domiciled JV-partner CBD Group Asia Ltd. (“CBD Group”) has previously distributed premium Canadian CPGs into China's largest retail chains and C stores, including RT-Mart International Ltd. and Carrefour SA.
• RT-Mart alone operates over 484 retail locations covering 233 cities and 29 provinces in China and generated $20-billion in sales in 2018.
Eurasia Infused, by way of a commercial concession with CBD Group controls a distribution agreement signed with YuShop for CBD and hemp-derived beauty and wellness products for the territories of People's Republic of China and the Hong Kong special administrative region. This distribution agreement extends to AgraFlora's robust portfolio of CBD-infused and/or hemp-oil-derived CPG personal care products.
Brandon Boddy, Chief Executive Officer and Chairman of AgraFlora stated: “We are very optimistic for a full-scale Asian commercialization campaign of Eurasia Infused’s comprehensive CBD product suite. Further reinforced by YuShop’s expeditious listing of our three-flagship cosmetic SKUs on their cross-border lifestyle and e-commerce platform, forthcoming phases of commercialization will include the launch of our premium product suite in hundreds of high traffic locations spanning China’s metropolitan city centres.
“Internal forecasts indicate we expect to reach over 1.5 million targeted consumers per month by end of Q2 2020, with realized revenues projected to increase accordingly. Our premium CBD and Canadian organic hemp-oil derived CPGs fills an underserved product category in China and Hong Kong today and we feel that it will function as a benchmark for CBD infused CPG formulations.”
Eurasia Infused is positioned to capitalize on current and future market trends in the rapidly expanding global cannabinoid-infused CPG space. Existing turnkey cultivation/manufacturing capabilities further bolster the JV’s ability to swiftly expand the breadth of its current product line to more than 40 SKUs. Eurasia Infused is finalizing the development phase of a suite of innovative SKUs, specifically tailored of the Asia Pacific theatre, including:
- Organic cosmetics with anti-aging properties;
- Shampoos and conditioners;
- Sunscreens.
James Foster, Chief Executive Officer of CBD Group Asia, commented: “We are delighted to move our business case forward to generating revenue so quickly having agreed terms on our Eurasia JV with AgraFlora. Asian customers have responded extremely well to the prospect of purchasing AgraFlora ‘Whole Hemp Health’ brand and as a result we have moved forward with our distribution plans through a successful listing with YuShop Global.
“Furthermore, we have initiated discussions with further parties working within CBD Asia Group’s existing sales network. These include three more large distribution companies based in PR China to further expand sales reach after this initial launch. Prospects for the JV look extremely strong as the market for CBD in Asia rapidly accelerates to hyper growth and we are fortunate through our JV with AgraFlora to be tactically well positioned within this margin rich marketplace.”
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy
Chairman & CEO
T: (604) 398-3147
| For additional information: AgraFlora Organics International Inc. Tim McNulty E: ir@agraflora.com T: (800) 783-6056 | For French inquiries: Remy Scalabrini, Maricom Inc. E: rs@maricom.ca T: (888) 585-MARI |
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the business plans for AgraFlora Organics described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.