Element Nutritional Sciences (ELMT.C) inks U.S. distribution deal

Element Nutritional Sciences (ELMT.C), a Canadian company focused on the development of patented and science-based consumer good products geared to men and women over the age of 50, announced today that it had signed a distribution agreement with OCSB Emerging Brands Group (OSB Brands).

The deal gives OSB Brands the right to distribute Element’s Rejuvenate across the convenience services channel in the United States.

OSC Brands convenience services network includes approximately 12,000 vending, micro-market, pantry and other convenience services companies along with travel, specialty retail and hospitality clients nationally.

The agreement gives Element’s Rejuvenate product exposure to over 75,000 points of distribution in America.

Stuart Lowther, Element CEO, commented, “With Rejuvenate™ firmly established in the U.S. pharmacy channel and a rapidly scaling e-commerce presence, we are continuously looking to partner with operators that can bring Rejuvenate™ to new consumers, especially those seeking functional benefits. OCS Brands distributes a roster of brands that align with our mission to help people live happier and healthier lives. This is our first step in executing our single serve strategy in the U.S. market to give consumers greater access to Rejuvenate™. This partnership also provides a greenfield opportunity for Rejuvenate™ in the US$31 billion U.S. convenience services industry.”

In other news, the company announced it had filed and obtained a receipt for a final short form base shelf prospectus from regulatory bodies in each of the provinces and territories in Canada.

This prospectus allows Element to offer up to $28.0 million worth of common shares, warrants, subscription receipts and units in the 25 months period that it is effective.

At the end of July, Element announced that it had completed commercialization for its Clinical Strength Rejuvenate™ formulation to be launched into the medical practitioner market in partnership with Dr. James LaValle.

The agreement with Dr. LaValle runs for two years and is for the promotion of Element’s products in television and digital campaigns. Commercial production of Clinical Strength Rejuvenate was expected to commence in the near term.

The segment for nutritional supplements in the medical practitioner market is estimated to be worth over $4.0 billion USD.

Element recorded $319,705 in cash as of March 31, 2022 and had revenues of $2.28 million in the three months ending that same date. The bottom line was a net loss of $1.07 million for that quarter, 14% better than the $1.29 million net loss reported in the previous quarter.

Equity.Guru’s Investor Roundtable Crew sat and discuss the company and its potential back at the beginning of June: