Friday, May 18, 2018
Pivot Pharmaceuticals Inc. is pleased to announce that its wholly-owned California subsidiary, Pivot Naturals, LLC has signed a Definitive Manufacturing and Supply Agreement ("the Agreement") with Stoney LLC ("Stoney"), a leading brand of cannabis products in the state of California.
Under the terms of the Agreement, Stoney has agreed to purchase Pivot's suite of Ready-To-Infuse-Cannabis ("RTIC") powderized products, including formulated capsules for targeted effects, bulk powder for baking additives, single serve stick packs and pet food supplements. These finished products will be marketed under the established and respected "Stoney™" and "Halo™" brands. Order quantities will be determined in rolling 30-day periods commencing in 2018.
Mr. Ivan Villa, President of Stoney LLC stated "We are excited to partner with Pivot and their patented superior technology to provide our customers additional choices throughout our high-quality Stoney™ and Halo™ brands. Our customers have been demanding this level of bioavailability technology with targeted effects and we are thrilled that we will be able to deliver on their expectations. The RTIC cannabis powder is revolutionary, simple to use, doseable, flavorless and odourless. We look forward to having a long and prosperous relationship with Pivot as our brands continue to increase market share in the large California cannabis derivatives market."
Patrick J. Rolfes, President of Pivot Naturals, LLC stated "I am thrilled to execute our first Manufacturing and Supply Agreement in California. This positions our patented RTIC powderization technology as an industry changing solution. This is a critical milestone that further validates Pivot as a leading supplier of premium, science-based cannabis products."
"This watershed milestone Agreement is transformational for Pivot and validates our strategy of acquiring novel cannabis focused IP and generating sales by bringing the cannabis industry's largest pipeline of products to market," said Pivot Pharmaceuticals' CEO, Dr. Patrick Frankham.
Recreational cannabis sales began in California on January 1, 2018 and the market is expected to haul in billions of dollars in revenue next year as dispensaries roll out across the state. A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis in California to hit $3.7 billion by the end of 2018 alone, and predicts that number will increase to $5.1 billion in 2019 as more dispensaries come online. For comparison, beer sales in California hit $5 billion in 2017, according to industry research group IBIS World.
