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Kali-Extracts Announces CBD Extraction Contract Estimated to Generate $5 Million in 2019 Revenue
DALLAS, June 4, 2019 /PRNewswire/ -- Kali-Extracts, Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) ("KALY") today announced entering into an agreement with a New York State Licensed Hemp Cultivation Operation anticipated to generate an estimated $5 million in revenue for KALY. Kali-Extracts owns and operates a U.S. Patented Cannabis Extraction Process. The New York State Licensed Hemp Cultivation Operation has entered into an agreement with KALY to consign its upcoming hemp harvest to KALY whereby KALY will extract CBD from the harvested hemp and market the extracted CBD under the Kali-Extracts brand name. Under the terms of the consignment agreement, KALY will remit payment to the New York State Licensed Hemp Cultivation Operation for the harvested hemp after Kali-Extracts' sale of the extracted CBD. Based on current market prices for hemp-derived CBD and the size of the New York State Licensed Hemp Cultivation Operation's indoor growing capacity, the estimated 2019 revenue potential to KALY from the contract announced today is $5 million.
KALY is biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from a proprietary cannabinoid product platform in a broad range of disease areas. In the fourth quarter of last year, 2018, KALY acquired NCM Biotech (NCMB). In NCMB's four years of operations, the company has established a leading position in the development of plant-derived cannabinoid therapeutics through a proven drug discovery and patented development process. The resulting intellectual property portfolio and the established regulatory and manufacturing expertise have created a significant opportunity. KALY has a deep pipeline of cannabinoid product candidates including four distinct compounds. KALY has completed the first stage of clinical development and testing for a Chronic Obstructive Pulmonary Disease (COPD) therapy and is currently conducting phase one development and trials for compounds targeting Cancer Pain Management, Type 2 Diabetes and Epilepsy.
KALY is not relying on its biopharmaceutical development strategy alone to insure the company's long-term success. With the popularity of cannabis extracts for infusion into various consumer products, KALY's patented extraction process offers arguably the highest quality extract to the infusion market. Drawing on KALY's patented cannabis extraction expertise, in addition to winning the $5 million extraction contract announced today, KALY has partnered with Puration (USOTC: PURA) to lend its extraction expertise in the production of EVERx CBD Sports Water, the leading CBD infused beverage for the sports nutrition market. KALY has also introduced its own CBD confections line, Hemp4mula with CBD infused gum already on the market and gummies on the way. Hemp4mula is available on the Ecommerce site USMJ.com hosted by North American Cannabis Holdings, Inc. (USOTC: USMJ) (aka USMJ). KALY's non-pharmaceutical extraction revenue strategy offers a business line that can stand alone, and at the same time provide KALY with the long-term staying power to bring its cannabis extract biopharmaceutical products to market.
To learn more about the company visit https://www.kali-extracts.com/
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
SOURCE Kali-Extracts, Inc.