Winter Garden Biosciences Explains Planned Mass-Scale Cannabinoid Production
Perth, May 12, 2015 AEST (ABN Newswire) - International Goldfields Ltd (
ASX:IGS) ("IGS" or the "Company") is pleased to provide an update about Winter Garden Biosciences ("Winter Garden" or "WG") operational plans for 2015/2016. WG is a Uruguayan biosciences and pharmaceutical company in which IGS has agreed to acquire an 85% interest (refer ASX announcement dated 1 May 2015).
Mass Production and Sale of High Potency Cannabinoid Extracts
Winter Garden's primary business revenues will be generated from the production and sale of high-potency cannabinoid extracts, specifically cannabidiol (CBD) based extractions, which are in high demand due to the growing appreciation for the potential health and therapeutic benefits. These extracts can be utilised in a variety of natural forms including global beverage, health food, medicinal, powdered, and capsulated forms.
CBD's are the non-psychoactive components that directly activate various non-cannabinoid receptors and indirectly activate CB receptors. CBD's have been shown to have anti-convulsant, anti-psychotic, anti-oxidant, anti-inflammatory, neuroprotective, and immunomodulatory properties.
Winter Garden is able to use non-synthesized heirloom hemp and cannabis varieties to produce high-potency extractions, highest purity products that are quantitatively and qualitatively measured and standardised beyond any formulation currently on the market. Another important WG production characteristic is that extracts possess unaltered chemical, terpine and flavonoid profiles conferring significant additional benefits not present in synthetically produced CBDs.
Additionally, WG expects to have an average concentration of 30% CBD by weight. By comparison, North American CBD extracts average less than 20% CBD by weight due to regulatory restrictions on hemp and cannabis production. The estimated 50% advantage in potency will make Winter Garden a global industry leader in the CBD extract marketplace.
Winter Garden is fully licensed to export cannabinoid products, including its high-potency CBD extracts. The Company plans to primarily target wholesale distribution partners which have developed CBD based product lines in the United States, Canada and Europe. This includes pharmaceutical and nutraceutical companies, in addition to companies focused on the marijuana marketplace. Winter Garden will also look at making its products available to retail consumers in North America and Europe which will supplement its wholesale revenues.
Julian Strauss, the founder of Winter Garden, stated: "The funding received through the proposed acquisition with IGS allows us to immediately begin cultivating our heirloom genetics on over 20 hectares of company owned land, with annual yields from two growing seasons at over 100 kilograms per hectare."
"We believe that we will extract the highest potency, most pure and critically, non-synthetic Cannabidiol available internationally. This will disrupt the CBD marketplace, which we have seen absorbing new demand and growing exponentially in the US and European markets, at a price point of US$100,000 per kilogram."
David Tasker, Director of IGS, stated: "The strategic acquisition represents a strong potential for large +90% margin near-term revenue inflows and consequently, significant upside potential for our shareholders. IGS is intent on expeditiously finalising this transaction and meeting its re-compliance obligations, including the funding of WG for which we have seen a very enthusiastic response to date."
Winter Garden is currently in negotiations with global CBD distribution companies regarding distribution agreements for its cannabinoid products and will update the market in due course should these negotiations proceed to a formal outcome.
About International Goldfields Limited
International Goldfields Limited (ASX:IGS) is a Perth based precious metals explorer with assets located in emerging mineralised provinces of Western Australia and Brazil. IGS is a focused Brazilian explorer advancing several recent gold discoveries at the Ouro Paz Gold Project to Maiden Resource estimation in 2013 with 700koz Au contained in 3.4Mt Measured and Indicated averaging 2.55g/t Au and 5.1Mt Inferred averaging 2.48g/t Au.
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