VANCOUVER, British Columbia, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI ) (OTC: CADMF ) (FRA: CWAA ) (the “Company” or “Chemesis”), announces that it has signed Letters of Intent (“LOIs”) with 34 private liquor stores in British Columbia (B.C.) for distribution of its hemp-based chew products, pursuant to which Chemesis expects to begin distributing its products throughout the lower mainland and other densely populated areas of B.C. by early Q4 2019.
Chemesis anticipates strong demand in the Canadian market, as its tobacco-free, smokeless product is a healthier alternative to otherwise similar products that are currently available. A IBIS World’s Cigarette & Tobacco Manufacturing research report published in November, 2018 estimates the market for such products at CAD $2 billion, with an annual growth rate of 8% from 2013-2018.
Opportunities outside of liquor stores will also be pursued as the company gears towards its Q4 2019 commercialization.
"These LOIs will provide great consumer access to our hemp-derived chew", stated Chemesis CEO, Edgar Montero. "As the brand and products continue to develop, the Company will look to replicate these type of distribution arrangements. We are excited to be able to offer the market a smoke-less, tobacco-free product which is a healthier alternative to otherwise similar products currently available."
Due to competitive nature of the market, the Company will not disclose who the LOIs have been signed with at this time.
On Behalf of The Board of DirectorsEdgar MonteroCEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated U.S. Multi-State operator with International operations in Puerto Rico and Colombia.
The Company focuses on prudent capital allocation to ensure it maintains a first mover advantage as it enters new markets and is committed to differentiate itself by deploying resources in markets with major opportunities. The Company operates a portfolio of brands that cater to a wide community of cannabis consumers, with focus on quality and consistency.
Chemesis has facilities in both Puerto Rico and California and is in the process of constructing a GMP certified facility in Colombia. Chemesis’ Puerto Rico operations are licensed to operate 100,000 ft2 of cultivation, and 35,000 ft2 of manufacturing floor space. The Company is positioned to win additional licenses in highly competitive merit-based US states and will expand its footprint to ensure it maintains a first mover advantage.
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Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including with respect to its expected ability to produce and launch commercial sales of a tobacco-free, smokeless chew by Q4 2019 (or at all), its ability to finalize distribution arrangements in B.C. (or in any other jurisdiction), its ability to enter into any distribution arrangements apart from the LOIs, the potential size of the market for such products, the potential health benefits of such products, and its ability to acquire any new cannabis production or distribution licenses, and to expand its retail dispensary network. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release, including that it may not be successful in producing or launching commercial sales of a tobacco-free, smokeless chew by Q4 2019 (or at all), that it may not be able to finalize distribution arrangements in B.C. (or in any other jurisdiction), that it may not be able to enter into any distribution arrangements apart from the LOIs, that significant market demand for such products may not materialize, that such products may not carry the expected (or any) potential health benefits over tobacco-containing chews already on the market, that it may be unable to acquire any new cannabis production or distribution licenses or to expand its retail dispensary network, and generally that the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
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