Yield Growth (BOSS.C) is working on a cure-all for the common hangover.
The company has purchased eight CBD and THC-infused wellness beverage formulas, and a pill to treat hangovers, from in-house R&D technician Bhayna Solecki and engineer, Vivek Taneja.
These formulas were originally developed in India, and are based on Ayurvedic practices. Globalized and modern practices derived from Ayurveda are often seen as a type of alternative medicine.
Ayurveda commonly makes use of botanicals such as fruit extracts and spices. The jury is out as to whether or not there are any actual benefits to these types of medicine, but there’s definitely a considerable sized market for homeopathy.
According to Stratistics MRC, the market in Ayurvedic medicine was valued at $3.4 million in 2015 and is expected to grow to $9.8 million by 2022 with a compound annual growth rate of 16.2% from 2015 to 2022.
The factors driving this growth are the increased demand for natural and organic products, expanding medical tourism across the world and the rising consumer awareness of Ayurvedic cosmetics.
Analysts from Canaccord Genuity have stated that cannabis-infused and cannabidiol-infused beverages have the potential to outperform cannabis products, effectively reaching up to 20% of the market for cannabis-containing consumables by 2022.
“We are very excited to acquire these formulas as the first acquisition for our cannabis beverage line. We intend to leverage the expertise and international distribution channels that we have developed for our topicals products,” said Penny Green, CEO of Yield Growth.
Solecki is a natural health practitioner at working researching Ayurvedic science. Previously, she had been involved in creating and developing products for Yield Growth’s subsidiary Urban Juve Provisions. Taneja is an engineer who brings over 25 years of experience in the beverage industry, having developed products and processes for Coca-Cola (KO.NYSE), Nestle (NESN.SWX) and other companies in the beverage space.
These formulas provide:
- a hangover treatment
- cognitive capacity boost
- anxiety reduction
- energy boost
- toxin removal
- anti-inflammatory properties
Yield Growth will pay Solecki and Taneja $100,000 to acquire the assets, payable through 200,000 shares and 200,000 warrants to purchase shares at $0.60 per share for one year.
Additional compensation will come about for any patents filed, and when the products pass stability and preservative testing and when they are finally launched. Also, the vendors will be getting a 2% royalty on net revenues.
Immediately following the acquisition, UJ Beverages, Yield Growth’s subsidiary, will get started on the stability and preservative testing, and develop a brand while making strategic alliances with cannabis manufacturers in both Canada and Cannabis-friendly U.S. states.
OREGON’S GROWTH SPURT
New Frontier Data has Oregon as the fifth largest market in the country with over $1 billion in sales by 2020. Given the considerable growth that Oregon has enjoyed since cannabis was legalized there, it makes sense that UJ Topicals would want in with their Urban Juve product line.
UJ Topicals have since signed on with Nova Paths, a licensed cannabis products distributor operating in Oregon, for access to a distribution network of 400 stores, as well as a base for manufacturing.
Yield Growth is continuing to seek out these types of outsourced distribution deals to increase its potential revenue without jacking up the cost of geographical expansion with in-house manufacturing and distribution.
Some of Urban Juve’s key products include:
- daily ritual oils
- face mists
- anti-aging serums
- lip balms
- bath salts
- lip gloss
- facial cleansers
UJ Topicals has produced well over 50 wellness formulas, using hemp root and hemp seed oil. The root oil has anti-inflammatory properties, which is great for the skin, and commonly shows up in their formulations.
As of right now, Urban Juve has 11 hemp root oil extraction patents pending.
Full disclosure: Yield Growth is an Equity.Guru marketing client.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.