A88CBD.com will launch on February 20, 2020, and initially offer the entire line of CBD topical products, which include salves, balms, lotions, essential oils, and bath-salts all made with lab-tested full-spectrum hemp
Announces Termination of Merger Agreement with AQUAhydrate, Inc.
SCOTTSDALE, Ariz., Feb. 05, 2020 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) (“Alkaline” or the “Company”), a producer of premium bottled alkaline and flavored water sold under the brand names Alkaline88® and A88™, respectively, today announced its partnership with Youtech & Associates (“Youtech”) to develop and launch A88CBD.com, an end-to-end E-Commerce website that will immediately offer the Company’s suite of CBD infused topical products for sale to consumers. The expected launch date of the E-Commerce website will be February 20, 2020.
According to Grand View Research, Inc., the global CBD skincare market is valued at $234.1 million and expected to expand at a CAGR of 32.9% from 2019 to 2025, thereby reaching a value of $1.7 billion.
“With a trusted brand as strong as Alkaline88®, we have positioned our A88CBD™ brand to be a significant and strong emerging brand in two of the highest growth and in-demand verticals of the CBD space. The E-Commerce platform marks our aggressive launch into topicals as a result of our existing loyal customers’ and retail partners’ interest in our trusted brand. In the coming weeks, I would expect news and a direction with timelines for our highly anticipated and in-demand ingestibles product portfolio,” stated Richard A. Wright, President, and CEO of The Alkaline Water Company.
“The rollout of our E-Commerce strategy complements our brick-and-mortar approach as it will make our products accessible to our customers today, no matter where they reside. Our new E-Commerce platform will be fully optimized for mobile, ensuring that our customers have a simple and seamless shopping experience across all touchpoints.”
To develop and launch A88CBD.com, the Company has partnered with industry-leading integrated marketing and development agency, Youtech. Under the agreement, Youtech will develop a unique E-Commerce strategy for A88CBD.com to support its launch through SEO optimization, social media promotions, and influencer marketing. This agreement will allow the Company to take full advantage of the tremendous opportunity E-Commerce presents for its growing line of CBD infused products.
Wilbur You, Founder and CEO of Youtech, further added, “This partnership is a no-brainer. We selected A88CBD™ as a brand to work with because we believe that in the long term it will be a trusted, well-known brand that will ultimately deliver the best products to the CBD community. We see the Cannabis industry evolving before us, and Alkaline88® as a brand is focused on better people, better quality and better results. In an industry currently devoid of top-quality options, we’re excited to have the opportunity to bring the same quality to consumers on a mass scale. More importantly, everyone understands their role and value in making both Alkaline88® and Youtech better. I’m extremely humbled to have an opportunity to help lead Alkaline into the CBD market.”
The CBD market is expected to grow to over $20 billion by 2024, according to BDS Analytics. BDS Analytics’ estimates indicate that the $4.1 billion CBD derivatives market is currently served primarily through dispensaries, with the E-Commerce representing roughly $575 million or 14% of the current market. The industry research firm anticipates the E-Commerce segment to grow to $3.6 billion by 2024.
Also today, the Company announced that it has terminated its proposed acquisition of AQUAhydrate, Inc. Under the terms of the previously announced acquisition, either party had the right to terminate the agreement if the acquisition was not consummated on or before January 31, 2020.
“The termination of the transaction with AQUAhydrate allows us to focus all of our attention and resources on the core strategy of growing our flagship Alkaline88™ brand and our A88CBD™ brand. We view the launch of our portfolio of CBD infused topical products as a massive opportunity for the Company, and we can now fully focus on pursuing the growth of Alkaline88®, A88 Infused Flavors, and A88CBD™,” remarked Richard Wright, the Company’s President and CEO.
About Youtech & Associates
Youtech is an award-winning full-service integrated marketing and development agency with offices in Chicago, Illinois, and Scottsdale, Arizona. Youtech’s core capabilities are led by an executive team with decades of combined experience in web design, digital & traditional marketing, and development. With a track record of success in industries like CBD, manufacturing, hospitality, parking, retail, finance, and senior living, Youtech is one of the top-tier agencies out of the Chicagoland and Scottsdale, AZ areas with a national footprint. Youtech is led by its CEO / Founder, Wilbur You, now an Advisory Board Member of The Alkaline Water Company. For more information on Youtech visit https://www.youtechagency.com/.
About The Alkaline Water Company Inc.
The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) is a producer of premium bottled alkaline and flavored water sold under the brand names Alkaline88® and A88™, respectively. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH balanced alkaline drinking water with trace minerals and electrolytes. The Company recently announced a broad line of CBD infused products, which include ingestibles and topical products. For its ingestibles line, the A88™ Infused Beverage Division Inc. produces CBD infused drinks, beverage shots, tinctures, capsules, and powder packs. For its topicals line, A88™ Infused Products Inc. produces salves, balms, lotions, essential oils, and bath-salt all made with lab-tested full-spectrum hemp. The Alkaline Water Company Inc. is currently pursuing a national multi-channel, mass-market expansion strategy with a direct-to-warehouse model and co-packaging facilities that are strategically located 600 miles within 95% of the U.S. population. Founded in 2012, the Company is headquartered in Scottsdale, Arizona. To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect on Facebook, Twitter, Instagram, or LinkedIn.
The Company intends to comply in full with all federal, state, and local laws, rules, and regulations as the Company develops its CBD-infused ingestible products. The Company will not pursue the commercial production or sale of CBD-infused ingestible products until legally permitted. The Company is closely watching and responding to all regulatory developments within the FDA and in each U.S. state, and plans to launch its CBD infused ingestible products accordingly.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements.” Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the following: that the global CBD skincare market is expected to expand at a CAGR of 32.9% from 2019 to 2025, thereby reaching a value of $1.7 billion; that the Company has positioned its A88CBD™ brand to be a significant and strong emerging brand in two of the highest growth and in-demand verticals of the CBD space; that in the coming weeks, the Company expects news and a direction with timelines for the Company’s highly anticipated and in-demand ingestibles product portfolio; that the Company’s E-Commerce website will make the Company’s products accessible to the Company’s customers today, no matter where they reside; that the Company’s new E-Commerce platform will be fully optimized for mobile, ensuring that the Company’s customers have a simple and seamless shopping experience across all touchpoints; that the agreement with Youtech will allow the Company to take full advantage of the tremendous opportunity E-Commerce presents for its growing line of CBD infused products; Youtech’s statement that Youtech believes that in the long term, A88CBD will be a trusted, well-known brand that will ultimately deliver the best products to the CBD community; that the CBD market is expected to grow to over $20 billion by 2024 and the E-Commerce segment to grow to $3.6 billion by 2024; and that the Company views the launch of its portfolio of CBD infused topical products as a massive opportunity for the Company.
The material assumptions supporting these forward-looking statements include, among others, that the demand for the Company’s products will continue to grow significantly; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers, and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that there will be an expansion into new national and regional grocery retailers; that there will be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products, including products containing hemp/CBD; the fact that consumers may not embrace and purchase any of the Company’s CBD-infused products; the fact that the Company may not be permitted by the FDA or other regulatory authority to market or sell any of its CBD-infused products; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply-chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; and competition in the industry in which the Company operates and market conditions. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on the SEDAR, available at www.sedar.com.
The Alkaline Water Company Inc.
Richard A. Wright
President and CEO
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