ISO-SPORT today announced the launch of its products with Holland & Barrett International (“Holland & Barrett”), beginning with an initial order of ten SKUs of hemp-extract based cannabidiol (CBD) products from the Company’s RapidCBD™ and Iso-Sport™ brand catalogues for more than US$1 million.
The launch has commenced online and more than 45,000 units are expected to be available in up to 800 Holland & Barrett stores by the end of March 2019 throughout the United Kingdom and the Republic of Ireland. Holland & Barrett is the largest health and wellness retailer in Europe, operating more than 1,300 stores, 10 million customer loyalty program members, and US$800 million in annual revenues.
The RapidCBD™ and Iso-Sport™ food supplement and cosmetic skin care products contain Isodiol’s proprietary ISO99™ hemp extract and botanical blends that work synergistically to provide positive health and wellness benefits to the body and mind. All of the products in Isodiol’s program for Holland & Barrett are specially formulated for the U.K. and E.U. markets.
“This is a great deal for both Holland & Barrett and Isodiol, and we could not be more pleased with the great people at Holland & Barrett who embarked on this months-long journey with us,” said Isodiol’s Chief Executive Officer, Marcos Agramont. “Isodiol has been the pioneer of many firsts in the hemp-based consumer packaged goods (CPG) industry. This one is special because it provides equal access to quality CBD products for an entire demographic of consumers who have a pre-existing relationship with a trusted vendor.”
“Gaining a foothold in the European market and getting Isodiol products on the shelves of such a respected retailer is a significant milestone in the Company’s development,” said Isodiol’s VP of Business Development, Graham Boylan. “Although the U.K. and E.U. markets are highly regulated, the opportunities to provide Isodiol’s pioneering hemp-based consumer packaged goods (CPG) to a new and growing CBD market outweigh those challenges. Holland & Barrett has led the way in selling CBD in the U.K., and we look forward to providing additional first-to-market U.K.- and E.U.- compliant CBD product offerings in the near future, to ensure that together we remain ahead of the pack.”
This announcement comes on the heels of Isodiol’s announcement of its partnership with the Asian American Trade Associations Council (AATAC) for the Company’s convenience store (C-Store) retail program into an initial 1,250 locations in the United States, with expansion plans of up to 10,000 additional locations. The Company will launch its Fast CBD Relief™ brand from the CBD Naturals® brands portfolio as its flagship cannabinoid (CBD) products in its C-Store program.
ISODIOL is focused on the nutritional health benefits that are derived from hemp and is a product development, sales, marketing and distribution company of hemp-based Consumer Packaged Goods (CPG) and solutions. Isodiol has commercialized a 99%+ pure, naturally isolated CBD, including micro-encapsulations, and nano-technology for quality consumable and topical skin care products. The Company received approval for its CBD as an Active Pharmaceutical Ingredient (API) for use in Finished Pharmaceutical Products (FPPs), as was announced on April 26, 2018. Isodiol’s growth strategy includes the development of over-the-counter and pharmaceutical drugs and continued international expansion into Latin America, Asia, and Europe through the proliferation of its various brands, including the recently acquired CBDNATURALS portfolio of brands and proprietary technologies.
About Holland & Barrett International
Holland & Barrett is one of the world’s leading health and wellness retailers and the largest in Europe, supplying its customers with a wide range of vitamins, minerals, health supplements, specialist foods, and natural beauty products. With over 145 years of experience in the industry, Holland & Barrett’s name is a familiar sight in almost every major city and town across the United Kingdom and is becoming increasingly more visible further afield, in markets as diverse as the Netherlands and Malta to the United Arab Emirates, China, and India. Standard stores vary in size averaging at 1,100 sq ft, with smaller standard shops selling core traditional products across the supplements, fruit, nuts, and seeds categories, while larger stores have a more extensive range of health foods, including frozen, chilled, and sports nutrition, alongside a wide range of natural beauty products available on the high street.
Isodiol International: A CBD Company to be Watching
One of the most exciting trends in the cannabis industry has been the increasing demand for cannabidiol (CBD) products. During the last few years, this trend has been gaining considerable traction and we believe the CBD opportunity is reaching an inflection point.
CBD is breaking into the mainstream market and this is a trend that investors need to be watching.
We have been closely following the CBD industry and have been bullish on the growth prospects associated with this opportunity. During the last year, there has been a significant increase in the number of companies focused on this burgeoning opportunity and this is something we have been watching. It is important for investors to focus on CBD companies that are gaining market share and advancing operations.
Isodiol International (ISOL.CN) (ISOLF) is a CBD company that we have been closely following and believe that this is an opportunity to be watching. The company has been laser focused on the CBD market and is led by a management team with a proven track record of success. Isodiol is a company that has been in the middle of a major transition and has significant catalysts for growth.
The CBD company is in the middle of a major strategy change and we believe that these changes are significant. Earlier this year, the company announced plans to refocus its business strategy on core competencies and key market segments. Isodiol has been executing on a strategy that will streamline its business, reduce shareholder dilution, and cut costs while taking advantage of significant new opportunities.
Going forward, Isodiol plans to focus on three primary strategic pillars: technology, branding, and retail. The company plans to divest of its cultivation and non-specialty manufacturing operations, which represents a significant strategy shift. We are favorable on Isodiol’s refined focus and will monitor how the team continues to execute.
Selling BSPG for $14 Million While Retaining Certain Rights
Earlier this month, Isodiol reported a significant divestment and announced the sale of its wholly owned subsidiary, BSPG Laboratories Ltd. (BSPG) to a U.K. based private equity group for US$14,000,000 in cash installments. BSPG has played a major role in the company’s overall story, especially with how it pertains to the future of API CBD for clinical applications and future pharmaceutical products.
One of the reasons why we are favorable on this transaction pertains to Isodiol securing an off-take supply agreement with the buyer to ensure continued distribution of its Purodiol and Isodiolex products. This divesture will provide Isodiol with enough supply to fulfill its production needs for Purodiol and Isodiolex and clinical research projects at a below market cost. The sale also provides the company with the ability to scale alongside BSPG’s expansion, without having to raise additional capital.
In late March, Isodiol receive the first $5 million installment and the second $5 million installment is due in late June. A third installment of $2 million is due and late September and the final $2 million installment will be payable upon the expansion of BSPG’s production capacity into its newly leased 20,000 sq. ft. laboratory facility. The growth prospects associated with the new facility are significant and it is expected to increase BSPG’s capacity by 8-10 times.
A Transition to be Watching
Although there has been a significant strategy change, Isodiol will continue to focus its resources on the United States as well as on other emerging markets, such as the United Kingdom and Mexico, for the commercialization of consumer goods made with CBD and other hemp-derived ingredients.
We are favorable on the change in strategy and believe that the new focus will benefit Isodiol shareholders. As legalization and acceptance of CBD accelerates at a rapid pace globally, the demand for CBD products is exploding. Isodiol is well positioned to capitalize on this, has conducted major research on CBD and has invested in technologies to extract and isolate CBD and other cannabinoids for use in prescription and consumer health products.
For the past several years, Isodiol has been quietly building a platform to capitalize on this opportunity which it has recently unveiled. The company is an early mover in the CBD market and this is just starting to pay off. Isodiol has several catalysts for growth and this is an opportunity that we are monitoring closely.