OTTAWA, July 29, 2019 (GLOBE NEWSWIRE) -- Eureka 93 Inc. (CSE: ERKA, “Eureka93”), one of North America’s largest hemp-derived cannabidiol (CBD) extraction and processing companies, has secured binding letters of intent with new and existing arm’s length partners to expand the company’s infrastructure for future CBD-infused products. The agreements are expected to be funded from the company’s future cash flows.
Subject to the execution of definitive agreements, and at no additional cost to Eureka93, the company is expanding its current relationship with PRO-DIP® for exclusive global rights to its delivery technology, as well as solidifying an agreement with Neobourne Pharma for the exclusive manufacturing rights to internationally renowned effervescent brand, Brioschi®. These relationships are expected to deliver new revenue streams, provide access to distribution networks across North America, and serve as the underpinning of future CBD-products.
Eureka93 has already generated revenue from PRO-DIP® products and has received an order from Brioschi®. The value of the existing production is not expected to be material to Eureka93’s total consolidated revenue for 2019. Additional details about subsequent product launches will be revealed at a later date.
“As we expand our business model with consumer brand architecture, we are continually exploring opportunities that allow us to leverage available technology and resources to innovate for future products,” said David Rendimonti, Chief Executive Officer, Eureka93. “We are committed to targeting the sports wellness and general health markets, and agreements with these successful brands offer promising opportunities to deliver on core objectives of our retail strategy.”
PRO-DIP® Partnership Extension
Building on its long-standing relationship with PRO-DIP®, a patent-pending world leader in nutritional oral pouch delivery system for nutraceuticals, the 10-year partnership will see Eureka93 acquire exclusive global rights to the delivery technology for existing products and possible future CBD and other cannabinoids, as well as the manufacturing of all future products.
Introduced in 2018, PRO-DIP® has a projected 92% share of the energy pouch market, and recently signed a national distribution agreement adding to their existing regional distribution channels, thereby increasing their exposure in the U.S. and greater North American retail markets.
Formulated by Eureka93 and for sale in the United States since May 2019, the current highly-differentiated product delivers flavourful bursts of vitamins and natural energy supplements through small, semi-permeable sachets placed in the mouth, between the gum and cheek or lip. The initial burst of supplements is followed by extended absorption of the nutrients through normal digestion, providing long-lasting energy, even at high-exertion levels. With its ease of consumption, the energy-rich pouches are an alternative to traditional sports supplements, and deliver a daily serving of natural vitamins and nutrients for the endurance and stamina required during exercise and sports.
By maximizing existing delivery mechanisms, Eureka93 plans to evolve the technology it has already developed, manufactured, and licensed to create new general health and sports-related offerings infused with CBD.
Brioschi® Agreement
As an internationally recognized brand for more than 100 years, Brioschi® is known for its efficacy as an antacid, which is currently a global multi billion-dollar growing market.
The five-year agreement with Neobourne Pharma will see Eureka93 exclusively manufacture Brioschi® products for North America, including new-to-market, individual stick packs and fibre that will be in available in August 2019.
Additionally, Eureka93 will conduct research on future effervescent CBD product formulations for the general health and wellness markets. Opportunities with the Brioschi® brand or other CBD products would include food-related items for stomach inflammation and irritation.
The agreement also offers the opportunity for Eureka93 to leverage Neobourne Pharma’s extensive distribution network across the United States and international markets, as well as its relationships in beverage and food and other categories.
All research, formulation development, and manufacturing of Brioschi® and PRO-DIP® products currently takes place at Eureka93’s Windsor, Ontario, facility, which contains 20 pharmaceutical-grade clean rooms, is certified by Health Canada, has NSF certifications for GMP and Sport, is a USDA-Certified Organic Manufacturer, and is an FDA-registered facility.
About PRO-DIP® LLC
PRO-DIP® LLC is a highly innovative global leader in nutrient delivery systems. The company is dedicated to providing the highest quality products in oral pouch technologies for consumers and enterprise. The company was founded in May 2015, as a New York State LLC. For more information on PRO-DIP®, visit: Propdip.pro
About Neobourne Pharma LP
Neobourne Pharma’s mission is to provide consumers with quality pharmaceutical products featuring unique delivery methods, impactful packaging, and a clear, understandable message. With more than 35 years of experience in manufacturing, marketing, and distribution of major brands and private label products to the world’s top retailers, Neobourne’s expansive relationships cover all consumer/retail channels as well as the clinical B2B sector, including hospitals and elderly care residences. While its primary focuses are the North American Medical Device and Over the Counter (OTC) markets, Neobourne Pharma LP also owns and controls the Brioschi® brand and trademark for North America as well as Brioschi.com. For more information about Neobourne Pharma visit www.neobourne.com.
About Eureka93
Eureka93 is a multi-faceted CBD life sciences company with significant U.S. assets and operations, dedicated to the extraction, production, and distribution of CBD, a naturally occurring, non-psychoactive compound found in the hemp plant. With facilities in Eureka, Montana, Ottawa, Ontario, and Windsor, Ontario, the vertically integrated company is dedicated to producing the highest-quality CBD products for its customers. Eureka93 is a design-driven company for creative solutions in systems, products, packages and services. For more information visit, Eureka93.com
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements include all disclosures regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Often, but not always, forward-looking statements can be identified by the use of words or phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, and may be based on management’s current assumptions and expectations related to all aspects of the Company’s business, industry and the global economy. Further, the Company cautions that this foregoing list of material factors is not exhaustive and additional information identifying risks are detailed from time to time in the Company’s other continuous disclosure filings.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Eureka 93 Inc.
For more information:
Investors
Conrad Seguin
437.226.7002 or cseguin@eureka93.com
Media
Sónia Brum
647.338.7381 or sbrum@eureka93.com
Company
David Rendimonti, Chief Executive Officer
819.718.2042
