Tuesday, February 6, 2018

Developing Alternatives to Traditional Pharmaceuticals

By Jon Brown
Source: stockhouse.com


FULL DISCLOSURE: Isodiol International is a paid client of Stockhouse Publishing.

Cannabis stocks are proving to be a worthwhile investment, but how can any one company stand apart? A name Stockhouse investors are likely familiar with is
Click to enlarge Isodiol International Inc. (CSE: ISOLOTCQB: ISOLFForum).
 
For those needing a refresher, Isodiol is a global bioactive phytoceutical innovator that develops pharmaceutical health and wellness products from plants. These everyday products range from creams to pain-relief and are made from hops-based and hemp derivatives. All of Isodiol’s products are THC-free, non-GMO, and lab tested by a third party.

A recent report by Arcview Market Research found that consumer spending on legal cannabis in the United States reached $6.7 billion in 2016, which is a 34% increase from $5 billion in 2015. That report also projects spending to reach $22.6 billion by 2021. Isodiol is out to prove its product lines are capable of penetrating many demographics.

ISOL’s network is spread across five continents:
  • Headquartered in Canada with an established customer base.
  • Through the United States, ISOL has an established customer base with wholesale distribution partnerships.
  • Established operations in Mexico, where medical marijuana has been legal since June 2017.
  • Isodiol has received regulatory approval in Brazil and is negotiating distribution agreements with local pharma companies.
  • Through its established consumer base in the UK, the Company also has multiple distribution channels throughout Europe.
  • In 2018, Isodiol is working to establish a consumer base and strategic relationships in Southeast Asia, Australia, and New Zealand.

Legislation is being passed in countries around the world to legalize medicinal cannabis cultivation and distribution, and Isodiol is continuing to capitalize on this huge market potential while continuing to expand its business.

Isodiol has already become the largest global industrial source of CBD hemp oil and is looking to evolve toward becoming a true international pharma company through a growing network of distribution channels.

Founded in 2009, Isodiol set up a certified manufacturing facility within two years, where products are tested and distributed. In September 2017, ISOL announced its launch of a Phytoceutical Division. This branch is researching the revolutionary development of CBDs from non-cannabis plant sources. In a news release, Company CEO Marcos Agramont mentioned that this innovation means products can be shipped to international markets much faster, due to fewer regulations and restrictions.
image: http://www.stockhouse.com/getmedia/e3a1bbdf-c815-487a-ab86-2f7d6c2a204a/iisoderm?width=200&height=272
Click to Enlarge.
Two months later, ISOL added the next piece to its international expansion strategy with a binding agreement to acquire 25% of Canadian National Pharma Group. The pharmaceutical manufacturer is in the final stages of receiving its Licenced Dealer (LD) status under the Canadian Controlled Drugs and Substances Act for production of cannabis and hemp extracts.

CN Pharma’s 9,700 sq. ft. manufacturing facility in Abbotsford, BC is awaiting final inspection by Health Canada and is expected to support the Company’s operation in Canada and serve as a launching pad to export to international markets.

Isodiol boasts unrestricted access to large-scale natural production and can leverage this to avoid the higher costs of synthetic cannabis manufacturing costs. It is the first company to commercialize a 99%+ pure bioactive pharmaceutical-grade CBD derived from the hemp plant. This raw ingredient is encased in a coating around a tiny capsule, through their proprietary microencapsulation technology to maximize its effectiveness as beverage or skin care product.

This gave rise to their ISO99 Bioactive CBD and their flagship product, Bioactive IsoDerm Cream, which has shown the ability to improve overall health and wellness.

In a conference call with Stockhouse Editorial, Chairman Aman Parmar expanded on Isodiol’s enterprise. He pointed out that while the company has always been proud of the Intellectual Property (“IP”) it has developed, its mission is to focus on mainstream distribution and developing value-added brands.  This means developing brands that can be sold into traditional channels, such as natural food stores or big-box retailers.  It’s a differentiator compared to selling through dispensaries with the goal to capture larger revenue streams.

Isodiol is building its business thanks to several recent acquisitions to expand its family of brands.  One of these unique acquisitions was the Biosynthesis Pharma Group Ltd., which is the key to their transformation into an international pharma operation. This move allows the Company to complete the seed-to-sale process of their business and to manufacture and produce raw ingredient supply.

BSPG is an industry-leader in industrial hemp production, it’s derivatives and pharmaceutical compounds for medicinal, nutraceutical, food and cosmetic industries.

Once the deal is finalized, Isodiol will gain majority shares of seven groups operating in the UK, China, Austria, and Brazil. ISOL will be on its way to become a true pharma company while being in the unique position to elevate its CBD quality and the science behind it. Investors will want to stay tuned to Stockhouse for future coverage on this transaction.

In January 2018, Isodiol signed a distribution agreement with United Natural Foods Inc. to distribute its Be Trū Organics products. UNFI, a NASDAQ-listed company, is one of the largest distributors of goods in North America.  Aman Parmar explains that this move will allow Isodiol to target the much broader, untapped “Middle America” audience of “every-day” users who don’t want to go through a dispensary.
 
Through its agreement with marketing and licensing company Level Brands, Isodiol will develop consumer lifestyle health and wellness products for men and women, from skin care to food products for more day-to-day uses.
 
The relationship with Level Brands was made possible thanks to an introduction by an impressive and well respected financial backer of Isodiol - Serruya Private Equity, a family-managed private equity group with a heritage of developing brands.

In December 2017, ISOL announced that it had secured $30,100,000 in financing led by Serruya Private Equity. Based out of Markham, Ontario, the Serruya family has many corporate connections to help bring Isodiol to the next level. The family founded the Yogen Früz frozen yogurt chain in 1986, now with more than 1,400 locations.

Aman Parmar adds that their help has been immense on the operational front. Since forming a relationship around three months ago, the Serruyas have opened doors and have helped the Company on the operational front to build its business while introducing Isodiol to more manufacturers in Canada and the US.






















A burning question on the minds of many investors is, could the growth of the US marijuana industry be in jeopardy if the Department of Justice moves ahead to enforce federal laws to keep recreational marijuana out of stores? For Isodiol, not likely. The Company’s only recreational brand is Pot-O-Coffee, of which Isodiol is only the manufacturer, assigning IP over to the producers, and not touching the THC plant. ISOL’s hemp-based product lines are not affected by the Jeff Sessions announcement.

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Aman Parmar notes that Isodiol is taking this change in the legal landscape day-by-day and looking for partners state-by-state. The Company has agreements in place with several states and recently signed an agreement with a California manufacturer. He envisions there will be a ramp-up of Pot-O-Coffee distribution agreements in the US. In addition to this, ISOL also has agreements with Canada’s Canopy Growth Corp. (TSX: WEEDOTCQB: TWMJFForum) and international markets to distribute Pot-O-Coffee over the first half of 2018.

Isodiol has seen the public attitude toward cannabis change over the years, from the fringes of nervous consumption out of sight to a respected medicinal alternative with untapped potential. “Over the last six months, we’ve pivoted from considering ourselves a cannabis company to now considering ourselves a phytoceutical company,” Aman points out.

The list of aliments that can see a positive effect through the use of these phytoceuticals is long and affects a great number of people. The Company brought leading neurologist Dr. Ronald Aung-Din on board in November as an Advisor. Before joining Isodiol, Dr. Aung-Din had participated in more than 60 pharmaceutical-sponsored studies that were instrumental in the development of medicine to treat degenerative and neurological disorders.

A pharmaceutical company developing alternatives to traditional pharmaceuticals. That’s how Isodiol began and the vision remains the same as the company expands internationally, while developing other types of pharmaceuticals outside of cannabis.

When the Company began, it operated on a tech focus, but now that ISOL has been exposed to the industry, growth and opportunities are starting to emerge across the globe.

For Isodiol, the evolution is still in its beginning stages, mirroring the evolution of cannabis biopharma from a concept to a true industry. Competitors are flocking to the medicinal cannabis space. The team at Isodiol will keep as it works to stay ahead of the curve.

FULL DISCLOSURE: Isodiol International is a paid client of Stockhouse Publishing.

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