The followings are some of Q1 2020 financial results based on MD&A:
The Company posted revenues of $387,856 for the three months ended October 31, 2019, as compared to $129,437 for the same period prior. Other operating revenues (including franchise sales royalties, advertising royalties, and rental income) has increased to $118,355 as compared to $69,340 for the same period prior. (Page 2)
EastWest anticipates that its distribution sales to continue to ramp up. Purity Life, Canada's largest natural health product distributor, has selected pet treats Slim'Dog and Calm'Cat, both of which contain a ground-breaking hemp- and cricket-based formula for pets, as the first pet treats to be carried under the Purity Life banner. (Page 9)
As a Health Canada site licensee, Vale employs good manufacturing practices (GMPs) and protocols for ensuring all its products are developed and tested with consumer safety as a high priority. EastWest has been working Health Canada to put in place specific GMPs and standard operating procedures (SOPs) to bring its manufacturing practices up to the high standards it will be requiring for all its internal subsidiaries and its contract suppliers. By leveraging its access to Sangster’s 200+ NPNs, Vale is diversifying its revenue source and has been successful in reaching out to former clients and new clients in offering new private-labelling service. Vale will continue to produce for Sangsters as well as co-pack for 3rd party clients. This vertical revenue stream will continue to be a priority in Canada to continue to create cash flow and profitability for the Company’s continued growth. (Page 9-10)
USA EXPANSION: To support its rapid USA expansion, EastWest incorporated EastWest Science USA (EastWest USA), a wholly owned operating subsidiary focused on CBD consumer products, manufacturing, production and distribution based in Marion County Kentucky, the heart of hemp growing and processing in the USA. In addition to vital oversight, management and localization of the Company’s brands into the US, EastWest USA will also play a key role in the manufacture of CBD pet products and cosmetics and the distribution of finished CBD products produced and warehoused at the 18,000sf manufacturing and warehouse facility in Marion County. (Page 10)
CHINA EXPANSION: Q1 2019 marked EastWest’s initial foray into the Chinese market. EastWest forged a partnership with Diverse Global Service (DGS), based in Chengdu Area of China (Sichuan) Pilot Free Trade Zone, to act as EastWest’s consultants and brokers in China. Chengdu has a diverse economy highlighting the food industry, IT and automotive manufacturing. It is one of the most important economic centers in Western China. (Page 11)
NEW US DISTRIBUTORS:
In Q1, EastWest, through its US based subsidiary EastWest Science USA, negotiated and signed distribution and broker agreements with several retail players in the US. These agreements accelerate EastWest’s US market penetration. Below are some of those agreements:
RISE North America: This vertically integrated distribution company headquartered in Annapolis, MD. RISE North America team brings over 100 years of collective retail sales, distribution, and broker experience with great success launching and growing new products in some of the largest chains in the United States. In addition, they operate a successful on-line store for products across many categories.
GM Health Wholesale: EastWest Science USA has signed a mutual distributor agreement with GM Health Wholesale (“GM Health”) (www.gmhempco.com), a Kentucky company and a leading manufacturer and wholesaler of CBD Tinctures, Creams, Salves and Capsules. Under the terms of this agreement GM Health will become a distributor of EastWest’s products and EastWest will become a global distributor for GM Health’s all-natural CBD products.
The addition of GM Health’s products to EastWest’s CBD catalogue greatly accelerates time to market for several products and introduces new and unique distribution channels via GM Health’s network of independent pharmacies stretching throughout multiple states.
Pet Tonics: EastWest Science USA also signed an LOI with Pet Tonics, LLC, DBA Paws Effect (“Paws”), located in Coppell, TX USA (pawseffect.com). Partnering with strong brands is a significant part of EastWest’s overall strategy to ensure a larger footprint in the retail landscape in Canada, the USA, and Asia. Pet Tonics’ current products include CBD biscuits, balms, and tinctures. Pet Tonics’ customer base includes a growing number of independent retailers in the United States and an aggressive sales team positioning product to some of the largest retailers in the US. With EastWest’s growing footprint in the pet space, it allows for a shared benefit to co-pack and extend both companies lines into key strategic markets.
Pet Tonics will increase exposure in the United States by co-branding and white labeling EastWest’s unique formulas with and without CBD, allowing both companies to grow faster in key markets. (Page 11)
Please read the MD&A at:
https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00038448&issuerType=03&projectNo=03015730&docId=4661976
(Disclaimer: This is the information I have read based on the MA&D. It is NOT any investment advice. Do your own DD.)
Previous News:
Thursday, February 6, 2020
The Company is pleased to announce that construction is completed on its CBD processing and bottling line in Lebanon, Kentucky. The CBD manufacturing line is part of its 50/50 joint venture with Azema Sciences through its US division, EastWest Science USA ("EastWest USA").
"EastWest 2.0 has become reality. We are now starting processing, production and sale of CBD in the USA. We have started receiving purchase orders for CBD co-packing/processing and now the hard work begins" states Rodney Gelineau, CEO of EastWest Bioscience.
Please read the news at:
https://web.tmxmoney.com/article.php?newsid=6221983591547779&qm_symbol=EAST
(1) January 29, 2020
Please read the MD&A at:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00038448
The Company recognized total revenues of $1,752,025, including other operating revenue, for the year ended July 31, 2019 as compared to $198,777 for the year ended July 31, 2018, (increased by 781%). (Page 16)
(2) December 18, 2019
EastWest Bioscience announces that it has entered a share purchase agreement with Darryl Sangster, Aquila Health Corp. and Sangster's Real Estate Corp. (collectively, the "Sangster Parties") for the purchase of shares of 1123573BC Ltd. ("573") and Orchard Valley Naturals Inc..
https://web.tmxmoney.com/article.php?newsid=8937536236510908&qm_symbol=EAST
(3) November 27, 2019
https://web.tmxmoney.com/article.php?newsid=4571809802835284&qm_symbol=EAST
(4) Wednesday, November 6, 2019
https://web.tmxmoney.com/article.php?newsid=4963111773390485&qm_symbol=EAST
(5) Wednesday, October 30, 2019
https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aEAST-2825420&symbol=EAST®ion=C
(6) The company’s Deck is here:
https://www.eastwestbioscience.com/wp-content/uploads/2019/06/EastWest_Bioscience_Investor_Deck.pdf
(7) Tuesday, September 10, 2019
https://web.tmxmoney.com/article.php?newsid=7982039684847953&qm_symbol=EAST
(8) Thursday, September 5, 2019
https://web.tmxmoney.com/article.php?newsid=7712409307498280&qm_symbol=EAST
(9) Thursday, August 15, 2019
https://web.tmxmoney.com/article.php?newsid=7302971490131866&qm_symbol=EAST
(10) Thursday, August 1, 2019
https://web.tmxmoney.com/article.php?newsid=7107544760442013&qm_symbol=EAST
(11) Thursday, June 27, 2019
https://web.tmxmoney.com/article.php?newsid=4734177862724476&qm_symbol=EAST
(12) Tuesday, June 25, 2019
https://web.tmxmoney.com/article.php?newsid=4786838535208688&qm_symbol=EAST
(13) Monday, June 24, 2019
https://web.tmxmoney.com/article.php?newsid=5157653251215317&qm_symbol=EAST
Major Brands:
(1) Sangsters
Sangster's is an award winning, Canadian, natural health retail franchise system with over 40 years in the Health & Wellness industry.
https://sangsters.com/
(2) Earth’s Menu
Earth’s Menu offers delicious and nutritionally dense hemp food products to support health and well-being.
https://www.eastwestscience.com/earths-menu/
(3) Natural Advancement
Natural Advancement is a Canadian pioneer in premium hemp health supplements and is the first brand in Canada to bring the health benefits of hemp to consumers through a natural health supplement.
https://naturaladvancement.com/buy-products
(4) ChanvreHemp
ChanvreHemp brings hemp’s health benefits to consumers through sophisticated and natural, hair care, skin care and body care products that focus on pure and clean ingredients for consumers.
https://chanvrehemp.com/
(5) Natural Pet Science
Natural Pet Science offers premium pet products that incorporate hemp, crickets and other earth-sourced ingredients for natural pet health support and gives pet owners safe and wholesome products for their pet’s best care.
https://naturalpetscience.com/
(Disclaimer: this is only the information I have read. It is NOT any investment advice. Do your own DD.)