Allied Corp. Signs Letter of Intent with Asian Company to Form Joint Venture to Expand into the Asian CBD Cosmetic Market
Newsfile Corp.
Kelowna, British Columbia--(Newsfile Corp. - September 20, 2019) - Allied Corp. (OTC Pink: ALID) ("Allied") - an international medical cannabis company focused on creating and providing targeted cannabinoid health solutions to address today's medical issues - is pleased to announce that it will be expanding its natural health products into the cannabidiol ("CBD") cosmetic market in Asia with Hong Kong-based CBD Group Asia Limited ("CBD Group Asia"). On September 11, 2019, Allied signed a letter of intent to form a joint venture to leverage CBD Group Asia's capabilities to distribute Allied's CBD-based cosmetics and natural health products in China, Hong Kong and throughout Asia.
Under the agreement, Allied and CBD Group Asia will form a joint venture corporation ("JV CO") that will enable Allied and CBD Group Asia to split the net income from the sales of Allied's natural health products in the Asian market. Allied will fund the initial launch of JV Co with USD $200,000 which will be reimbursed out of first revenue, after which the revenue will be split 50:50. Allied and CBD Group Asia joint venture is subject to the parties entering into a definitive joint venture agreement.
The launch in early September 2019 of Tactical Relief™ in the United States by an affiliate of Allied caught the attention of CBD Group Asia, which offered Allied an expansion of distribution into Asia. Allied intends to develop a natural health hemp-derived CBD infused cosmetic brand for the Asian market, Asian Life. The first products will be under the product name that is the Mandarin symbol for "living life alive."
"I am beyond pleased to announce that Allied is in the process of becoming a first mover in the Asian CBD market. We feel that Allied's natural health products have promising potential in this market, creating additional important revenue potential for Allied," said Calum Hughes, CEO of Allied Corp.
CBD Group Asia's principals boast over ten years of experience specializing in the importation and customization of premium Canadian consumer packaged goods (CPGs) for the Chinese marketplace. CBD Group Asia's management team has previously distributed premium Canadian CPGs into China's largest retail chains and C-stores, including RT-Mart International Ltd and Carrefour SA. RT-Mart alone operates over 484 retail locations covering 233 cities and 29 provinces in China, generating $20 billion USD in sales in 2018.
By 2024, the CBD market in China alone is forecasted to be worth USD $15 billion, according to Hong Kong-based investment company Regent Pacific Group, citing the beauty and wellness sector as the main driver.
"We are delighted to partner with Allied Corp. to aid their successful entry into Asia alongside us as Joint Venture partners. We feel Allied's product portfolio fits Asian consumers' requirements perfectly. We see a huge opportunity to market and brand Allied's products into one of the largest cosmetics market in the world. We look forward to making this arrangement a huge success alongside Allied and their team," said James Foster, CEO of CBD Group Asia.
About Allied Corp.
Allied Corp. is an international medical cannabis production company with a mission to address today's medical issues by researching, creating and producing targeted cannabinoid health solutions. Allied Corp. uses an evidence-informed scientific approach to make this mission possible, through cutting-edge pharmaceutical research and development, innovative plant-based production and unique development of therapeutic products.
About CBD Asia Group
CBD Group Asia ("CGA") is opening up avenues of growth in embryonic cannabidiol (CBD) markets emerging in Asia. CGA is positioning itself as a conduit in this region through investment in Asian CBD hyper growth stories and distribution of growth orientated North American based CBD brands. CGA is utilising its management team's decades-long investment, sales and marketing experience of consumer products in Asia in order to grow and expand within the Asian CBD sector.
Investor Relations: Anthony Zelen ir@allied.health +1-778-388-5258
Forward-Looking Statements:
This news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future performance. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as "anticipate", "become", "objective", "may", "will", "might", "should", "could", "can", "intend", "expect", "believe", "estimate", "predict", "potential", "plan", "is designed to", "project", "continue", or similar expressions suggest future outcomes or the negative thereof or similar variations. Such forward-looking statements include, but are not limited to, that the company will be able to enter into a definitive joint venture agreement with CGA, that the joint venture will be successful and that the joint venture will be successful in selling the proposed natural health hemp-derived CBD infused cosmetic brand Asian Life throughout China, Hong Kong and Asia. We are also subject to various additional risks as described in our SEC filings at www.SEC.gov.
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