MONTREAL, June 03, 2019 (GLOBE NEWSWIRE) -- Relevium Technologies Inc. (TSX.V: “RLV”, OTCQB: “RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”), is pleased to provide a corporate update on the Company’s positioning and strategy regarding medical cannabis and CBD Nutraceuticals.
LEEFYLYFETM BRAND OF HEMP CBD FORMULATIONS
The Food and Drug Administration (the “FDA”), held a key public hearing last Friday regarding its role in regulating cannabis-derived products such as CBD as nutritional supplements. The FDA’s position is that although hemp is no longer an illegal substance under federal law, the FDA continues to regulate cannabis products under the Food, Drug, and Cosmetic Act (“FD&C Act”) and Section 351 of the Public Health Service Act. Therefore, and until their position changes, any cannabis product marketed with a claim of therapeutic benefit, regardless of whether it is hemp-derived, must be approved by the FDA before it can be sold. The statement also confirms that the addition of CBD to food products and dietary supplements is unlawful.
Several constituents presented their cases including consumers in need of CBD for medical purposes, calling for the FDA to allow hemp CBD as a supplement. However, other groups representing the pharmaceutical industry pushed for stricter controls claiming that there is not enough evidence about the benefits from CBD.
The public hearing was the first of many steps towards allowing CBD as a supplement, which would then allow companies like Relevium, who fall under the supplement jurisdiction of the FDA, to provide current and future customers with trusted nutraceutical formulations containing full-spectrum CBD through its LeefyLyfeTM and Bioganix® brands across the US.
Under the FD&C Act, cosmetic products and ingredients are not subject to premarket approval by the FDA as long as the product does not make a health claim. This is important since the Company is also testing skin care formulations under its Push and Pull TM brand formulated with CBD. Although still under AB testing, the new skin care line is expected to produce important growth potential for the Bioganix® family of products.
Abis Hussain, CMO of Relevium Technologies stated “Subject to obtaining a greenlight from our legal counsel on the subject, we plan to release to the market our first skin care line extension with full spectrum hemp CBD oil.” The next seven months of 2019 are expected to be transformational for Relevium and for the health and wellness industry as a whole.
Aurelio Useche stated: “The next step in the FDA’s position to allow CBD as a food additive is for it to be classified as generally recognized as safe (“GRAS”) by qualified experts under the conditions of its intended use. We expect this process will take place this year, therefore making it possible for our brands to offer the wonderful benefits of this herbal supplement to all consumers.”
Europe and the United Kingdom
The European authorities in Europe and the UK have taken similar positions to the US by allowing the sale of full-spectrum hemp oil and hemp CBD as long as no medical claims are made. In Germany, in order to be able to make a medical claim, companies have to register their products with the health authorities to obtain a PZN (Pharma-Zentral-Nummer), which is a national code for medicine identification across Germany needed to make health claims and for the products to be sold through pharmacies in the country.
The Company, through a local partnership, is seeking to have several formulations registered under the PZN number codification and plans to market such products through pharmacies and major health portals in the country.
BIOCANNABIX MEDICAL CANNABIS BUSINESS
The Canadian market has been the subject of much debate in terms of its ability to effectively supply medical cannabis to health seeking Canadian consumers. In addition to the considerable investment that is required to build-out a compliant facility and tougher regulations in terms of the licensing process, the Canadian market is still “learning” from market wide issues and crop failures leading to poor quality and supply issues across the Country.
Relevium, through its wholly-owned Biocannabix biopharma subsidiary mission is to provide safe, organically sourced medicine for pediatric care into the Canadian market. The Company remains committed to its vertical integration strategy. However, rather than investing into an indoor cultivation and extraction facility in Canada, the Company is currently in discussions with South American based companies to fulfill this important part of its vertical integration.
Aurelio Useche, CEO stated: “In order to provide the right pediatric medicine, we need to control plant genetics, safety, quality and consistency of the extracts. As such, we believe and are committed to the vertical integration of our medical business. South America is our focus in achieving this objective.”
For these reasons, the Company has decided not to pursue a grow and processing facility in Canada. Instead, Biocannabix is currently looking at acquiring a significant interest in a late stage applicant with a focus on sales, import, export, formulating and R&D for Canada, while securing and controlling plant genetics and extracts from South America.
Aurelio Useche, CEO of Relevium Technologies states, “Due to the increased capital costs and risk factors imposed by the Canadian market, we have made the strategic decision to pursue an investment into a late-stage applicant for Standard Processing to expedite our research and sales focus for Canada”. The Company is currently in negotiations to execute an LOI with a late-stage applicant,
Considering Options for Shareholder Value Creation
As Relevium continues to obtain and build strategic cannabis assets under its wholly owned subsidiary “Biocannabix”, management will be reviewing alternatives to ensure shareholders maximize value through a focused and well-defined “vertical” for Biocannabix. Management is examining the ability of its medical cannabis bio-pharma subsidiary to deliver substantial accretive value for its shareholders. The Company expects to update its shareholders on the results of this review over the coming months.
About Relevium Technologies
Relevium is a publicly-traded company that operates in the health and wellness industry, including legal cannabis, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operations of brands and businesses in the health and wellness markets and medical cannabis. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products. Relevium operates through two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando, Florida, markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix® brand portfolio in the US and Europe. Relevium’s premium brands are sold at some of the world’s largest retailers including such as Walmart.com and Amazon.com.
Biocannabix Health Corporation (BCX), based in Montreal, Quebec, is a biopharma nutraceutical company focused on delivering pediatric endo-medicinal nutraceuticals for cannabinoid therapy.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed acquisitions, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the assumptions that the Company will be able to apply for and ultimately obtain an ACMPR licence, the proposed business of Biocannabix will develop as anticipated, that the Company will raise sufficient funds to develop the Biocannabix business, and that the Company will obtain all requisite regulatory approvals. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the risk that the proposed business developments may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
President and CEO
For more information about this press release: Tel: +1.888.528.8687
RELEVIUM TECHNOLOGIES INC