and MMJ Bioscience on Track for Revenues in July
Perth, May 28, 2015 AEST (ABN Newswire) - PhytoTech Medical Limited (
ASX:PYL) ("PYL" or the "Company") is pleased to announce that production of MMJ Bioscience Limited's ("MMJ") proprietary, Good Manufacturing Practice ("GMP") produced cannabidiol ("CBD") capsules commenced in Switzerland on 25 May 2015.
Highlights:
- Production of MMJ's GMP-produced CBD food supplement capsules commenced 25 May 2015 - Capsules to be branded and sold as SativolTM
- SativolTM will be the first product launched by Satipharm (an MMJ subsidiary) under exclusive development alliance with Swiss partners Ai Fame gmbH and Gelpell AG
- Highly concentrated formulation derived from superior extraction processes, which result in pharmaceutical-grade quality ingredients
- Proprietary delivery technology, competitive pricing and sustainable supply to lead to strong demand in the E.U.
- Roll out of SativolTM is on schedule and expected to be available for distribution in late June 2015
- Project is within budget and first sales are expected in July 2015 - a key milestone for MMJ and Satipharm as it becomes revenue generating
- Implementation of Marketing and Logistics for the product planning well underway
The capsules will be sold in packages of 30 x 10mg microgel capsules and marketed as a dietary supplement in the E.U under the brand name SativolTM. The first batch of 150,000 capsules will be ready for distribution by the end of June 2015 with sales scheduled to begin in July 2015. This is a key milestone for both PYL and MMJ leading up to the general meeting of PYL shareholders on 29 June 2015 where they will vote to approve the proposed merger of the two companies.
SativolTM will be the first product launched by MMJ subsidiary Satipharm under its exclusive cannabis-focused product development partnership with Swiss partners Ai Fame GmbH, an integrated cannabis-focused pharmaceutical compound manufacturer and Gelpell AG, a premium contract manufacturer of supplements and Phyto-pharmaceuticals. Both are based in St. Gallen, Switzerland.
MMJ expects SativolTM to generate strong demand from an early stage in the E.U. CBD supplement market. It differs from other products in the market as its GMP Quality Control Process and superior extraction processes have resulted in a highly concentrated formulation made from quality ingredients. Proprietary delivery technology, competitive pricing and sustainable supply are also expected to increase demand of the product in the region.
GMP Quality Control process
MMJ's GMP Quality Control process is implemented across all parts of the supply chain ensuring a high level of consistency and creating a high quality product with high quality ingredients. The raw materials used are grown in controlled conditions, resulting in a consistent strain of hemp, whereas many other supplements in Europe are made from inconsistent strains of industrial hemp and grown in uncontrolled conditions. Many resulting products are wrongly labeled and do not comply with basic food safety regulations, whereas SativolTM conforms to all applicable regulations and can legally be marketed in any country where CBD is not listed as a controlled substance.
Superior Extraction Processes
The proprietary CO2-based extraction technique used to extract the CBD for SativolTM is superior to that of other conventional CBD supplements, which utlise a crude extraction process such as ethanol extraction and often leave trace contaminants and results in an unknown total composition of the extract. Whereas the extraction process used by Satipharm results in a reproducible hempflower extract with a consistent 95% CBD content.
Proprietary Delivery Technology
Satipharm uses proprietary Gelpell AG microgel capsules encased in a gastro-resistant gel cap, which ensures accurate and consistent dosages and substantially enhances bioavailability. Other CBD products on the market tend to be sold as liquid extracts, hemp oil mixtures and expensive 'concentrates', which raise consistency, dosage and quality concerns.
SativolTM is the first of a planned line of non-psychoactive, cannabinoid-based health and wellness products to be launched by the merged PhytoTech and MMJ group, and represents an important milestone in the implementation of the Company's 'Farm to Pharma' strategy.
By the end of June 2015, SativolTM will be ready for distribution in the E.U, with revenues expected in July 2015, following the implementation of a focused marketing and logistics plan.
Significant demand coupled with limited supply in the market is helping support very robust prices for CBD extracts and CBD-based products worldwide and the Company is confident of achieving substantial revenues from the product.
Andreas Gedeon, CEO of MMJ and Designated Managing Director of the Group, commented:
"This is a pivotal moment for PhytoTech and MMJ with the sales of the SativolTM to bring the Company its first revenue generation. The sales of this product in the E.U also demonstrates the acceptance for the medicinal potential of cannabis. To our knowledge, this is the first time that a product of this quality and safety will be available to consumers.
SativolTM will be the first of several cannabinoid-based products designed for maximum sales and market penetration to be launched by the MMJ's Swiss-based Satipharm. With the imminent launch of SativolTM, the Group is quickly approaching initial revenues and demonstrating its ability to execute its strategy on budget and on time."
For further information on the product, its ingredients, benefits and the market please see below.
About Cannabionoids
Cannabinoids are a class of diverse chemical compounds - including Tetrahydrocannabinol (THC) and Cannabidoil (CBD) - contained in the cannabis plant. CBD is a non-psychoactive cannabinoid that has significant positive health benefits without the intoxicating effect of THC. CBD has been shown to counter the psychoactive effects of THC while simultaneously enhancing some of the positive effects of the cannabinoid. Importantly, Sativol does not contain THC.
Therapeutic Potential of CBD
Of all the primary cannabinoids, CBD is thought to have the biggest medicinal potential across the greatest range of diseases. Scientific research has shown that CBD may be beneficial for many conditions, including chronic pain, cancer, anxiety, diabetes, epilepsy, rheumatoid arthritis, PTSD, sleep disorders, alcoholism, cardiovascular disease, antibiotic-resistant infections, and various neurological ailments.
The Market for CBD in Europe, the US and Worldwide
The high medicinal potential of cannabinoids - particularly CBD - is being recognised by the public, governments, research institutes, pharmaceutical companies and other organisations worldwide. The Group is well positioned to take advantage of this growing acceptance and use of CBD as a supplement and potentially as a pharmaceutical.
About MMJ Group Holdings Ltd
MMJ Group Holdings Ltd (ASX:MMJ) is a global cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail. For MMJ's latest investor presentation and news, please visit: https://www.mmjphytotech.com.au/investors/
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