CBD Based Products Continue to Grow in Stature and Demand Around the World

CBD Based Products Continue to Grow in Stature and Demand Around the World

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, Feb. 27, 2019

NEW YORK, Feb. 27, 2019 /PRNewswire/ --  Cannabidiol, or CBD, has grown into the new craze global in marketplaces. After the recent passage of the U.S. Farm Bill in late 2018, hemp-derived CBD products have become massive in the United States as well. The bill allows for the cultivation and commercial sale of hemp-based products. However, the 2018 Farm Bill strictly distinguishes hemp as the non-psychoactive component of cannabis containing less than 0.3% THC or tetrahydrocannabinol. While CBD may not provide consumers with psychoactive effects, it is linked to providing users with relaxing and therapeutic benefits. Furthermore, because of CBD's effects, many medical companies have begun to use it as a form of treatment. In combination with the recreational market, the overall CBD market is projected to witness substantial growth moving forward. According to data compiled by Brightfield Group, the U.S. hemp CBD market is expected to reach USD 22 Billion by 2022, outpacing the rest of the cannabis market combined. Pressure BioSciences, Inc. (OTC: PBIO), Anheuser-Busch InBev SA/NV (NYSE: BUD), Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF), New Age Beverages Corporation (NASDAQ: NBEV)

Primarily, consumers are using CBD-based products such as oils, tinctures, creams, beverages, edibles, and flowers. While all the products may offer the same beneficiary effects, the products apply to different application. Consumers may be using creams in particular for muscle aches or chronic pain, while others may use beverages as a relaxation stimulant. Despite the large recreational market for CBD, the medical segment offers much more diverse applications. Consumers can also use CBD in order to treat other medical conditions such as epilepsy, seizures, Alzheimer's, inflammation, and depression, according to WebMD. With the emergence of the CBD industry, products are beginning to diversify as consumers now have access to a wide range of choices. "What is most notable is that this market has grown almost exclusively based on word-of-mouth, with marketing heavily restricted due to the legal gray area that hemp CBD operates in," said Bethany Gomez, Managing Director at Brightfield Group, "CBD is everywhere - it is both a trendy, new ingredient in drinks, face creams and pet treats and an answer to the prayers of so many people suffering from medical conditions ranging from epilepsy to anxiety and chronic pain. It rides the waves of so many global food and health trends, as a substitute for opioids, towards more natural health alternatives and functional ingredients."

Pressure BioSciences, Inc. (OTCQB: PBIO) announced last week that, "analytical testing on hemp-derived CBD oil processed via PBI's Ultra Shear Technology™ (UST™) platform has confirmed that UST processing uniquely achieves the challenging criteria for creating highly-effective "nanoemulsions" of CBD oil in water, without loss or modification of CBD throughout the entire UST process (> 99% recovery).

The ultimate goal in mixing oil-based nutritional and therapeutic products like CBD oil into water, for effective oral or topical delivery and absorption, is to reduce the size of the oil drops to such a level that they seemingly 'vanish' into the water (become "water soluble"). These exceedingly small, nanometer-scale droplets are so tiny that it becomes very easy for the human (or other animal) body to absorb the oil-based nutrients or drugs (like CBD) directly from the inner surface of the oil droplet. Traditional processing methods struggle mightily with this challenge, but PBI's proprietary UST platform uses ultra-high pressure to create extreme shearing forces to make nanometer-scale droplets of fluids that become highly-stable, homogenized "nanoemulsions" of materials that normally do not mix (e.g., CBD oil and water).

Dr. Vera Gross, Director of Applications Development at PBI, explained: 'We asked an independent, university-affiliated laboratory to determine the size of oil droplets achieved in UST-processed CBD oil, using a universally-accepted sizing method called DLS. Their analytical results revealed that the UST- processed oil drops were reduced to approximately 65 nm in size, well into the 20-200 nm range targeted for truly effective nanoemulsion delivery and absorption of nutrients and therapeutics, such as CBD (Nano- and Microscale Drug Delivery Systems, 2017).'

Dr. Gross continued: 'It was critically important to also demonstrate that CBD from hemp-derived CBD oil was not lost or modified during UST processing. For this we enlisted the help of scientists at NutraFuels, Inc. (OTCQB: NTFU), which has an FDA-inspected, highly-qualified analytical testing laboratory with state-of-the-art equipment and well-trained chemists with years of experience in laboratory testing.'

Mr. Cooper Dodd, R&D Scientist at NTFU, said: 'Using a powerful laboratory method called HPLC to measure the concentrations of CBD and potential impurities, we determined that no appreciable amount of CBD was lost during the UST process. These results compare well to our standard processing method of ultrasonication, which can carry a risk of measurable loss of CBD, and sometimes creates the appearance of impurities if not performed properly. While there is more work to be done, as a nutraceutical manufacturer with products already on the market, we see these results as a robust leap towards better optimization of our CBD-enhanced products.'

Dr. Keith Warriner, Professor of Food Science at the University of Guelph (Toronto), and a recognized expert in the cannabis industry, commented: 'The data released today on UST-generated nanoemulsions of CBD oil are very impressive. Creating nanoemulsions of CBD oil with full preservation of CBD throughout the process, while not generating impurities, remains a significant challenge in the industry. These data indicate that UST can achieve that goal, thereby offering great promise to the future.'

Professor Warriner continued: 'Not only does the UST process appear capable of achieving stability of emulsions, but the controlled heating that also occurs may offer a valid alternative to thermal and non-thermal pasteurization methods to reduce the risk of harmful microbes in products such as edibles and topicals. I believe that CBD-infused topicals and similar products will prove more popular with users than edibles. However, to be successful, it is imperative that topicals be highly stable, safe, bioavailable, and readily absorbent nanoemulsions. After consideration of the data released today, the UST process appears to be a leading candidate to fill that important need.'

Dr. Bradford A. Young, Chief Commercial Officer of PBI, summarized: 'We were delighted to release a short video last week showing the ability of our new UST platform to make visually clear and stable mixtures of CBD oil and water. The scientific data released today have further validated the achievement of creating high quality, nanoemulsion mixtures of oil and water using our UST platform. In particular, these data specifically show that CBD levels are preserved all the way through UST processing to the finished product. We are very excited by these results and believe our proprietary Ultra Shear Technology can help a diverse variety of customers to develop a vast array of new and beneficial products spanning multiple large markets, including CBD and nutraceuticals, cosmetics and topicals, food and beverages, drug delivery and more.'"

For our latest "Buzz on the Street" Show featuring Pressure BioSciences, Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=4GQHw2RK0bo

Anheuser-Busch InBev SA/NV (NYSE: BUD) is a publicly traded company based in Leuven, Belgium, with scondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). Recently, AB InBev and Tilray (NASDAQ: TLRY), a global pioneer in cannabis production and distribution, announced a partnership to research non-alcohol beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD). The partnership is limited to Canada and decisions regarding the commercialization of the beverages will be made in the future. The research partnership combines AB InBev's deep experience in beverages with Tilray's expertise in cannabis products. AB InBev's participation will be through its subsidiary Labatt Breweries of Canada, one of the country's founding businesses and its leading brewery, and Tilray's participation will be through its Canadian adult-use cannabis subsidiary High Park Company, which develops, sells, and distributes a portfolio of socially responsible cannabis brands and products in Canada. Each company intends to invest up to USD 50 Million, for a total of up to USD 100 Million. "Labatt is committed to staying ahead of emerging consumer trends. As consumers in Canada explore THC and CBD-infused products, our innovative drive is matched only by our commitment to the highest standards of product quality and responsible marketing. We intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities," said Kyle Norrington, President, Labatt Breweries of Canada. "We look forward to learning more about these beverages and this category in the months ahead."

Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX) has defined brewing greatness for more than two centuries. Molson Coors Canada (MCC), the Canadian business unit of Molson Coors Brewing Company and HEXO Corp. (TSX: HEXO) recently announced that they have closed the transaction announced on August 1, 2018, to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization. The joint venture, Truss, will be led by former Molson Coors executive, Brett Vye, in the role of Chief Executive Officer. Vye will report to the Truss board of directors consisting of three members appointed by MCC and two members appointed by HEXO. "With the backing of two partners with deep Canadian roots, proven success, and market-leading experience in the respective beverage and cannabis industries in Canada, Truss will hit the ground running," said Brett Vye, Chief Executive Officer at Truss. "When consumable cannabis is legalized in Canada, Truss will be ready to make its mark as a responsible leader in providing high-quality beverages for the Canadian consumer. Why "Truss"? We are joining together the extensive experience and excellent practices of each partner to build a powerful foundation for the future."

Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms International, Inc. recently announced that, following the recent passage by U.S. Congress of the 2018 Farm Bill, it will aggressively pursue opportunities to become a vertically integrated leader in the legal hemp industry, including significant opportunities in the cannabidiol (CBD) market. "The full and unambiguous legalization of hemp, and especially hemp-derived CBD products, creates a tremendous global opportunity and Village Farms intends to be a leader in this nascent industry," said Michael DeGiglio, Chief Executive Officer, Village Farms. "With one of the largest existing greenhouse footprints in the U.S. and a 30-year proven track record as a large scale, low-cost grower of high-value crops, Village Farms has a formidable platform to capitalize on the hemp and CBD opportunity. In anticipation of the passage of this landmark legislation, over the last several months, we have undertaken broad and extensive foundational work to ensure Village Farms can move quickly, aggressively and profoundly."

New Age Beverages Corporation (NASDAQ: NBEV) is a Colorado and Utah-based healthy beverage company dedicated to inspiring, educating consumers to live healthily. New Age Beverages Corporation recently announced the signing of an agreement to develop and distribute Marley branded cannabis-infused beverages. The first product to rollout in the Marley+CBD portfolio will be Marley+CBD Mellow Mood, relaxation drinks in 15.5 oz cans with 25 mg of pharmaceutical grade CBD per serving. Initial market rollout to customers will be in Colorado, Oregon, Washington, and Michigan where cannabis is legal for responsible adult consumption. This rollout gives New Age a significant first-mover advantage in the CBD space with a globally-recognized brand platform, and positions the venture well for further expansion as regulations permit. Michael Cunningham, Senior Vice President of Sales for New Age commented, "It makes my job a lot easier when I have retailers and distributors reaching out to me asking for specific products. From the moment the CBD movement began, I've been receiving calls nonstop asking when we'd be going to market with a Marley+CBDproduct. Retailers and distributors realize that it will be a long road for smaller CBD brands to gain traction and brand equity. Under the Marley brand platform, we are able to leverage a massive global brand with ties to healthy cannabis use, to ultimately grow a beverage brand beyond anything we have seen to-date."

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