Wed, 20 Jan 2021

PENTICTON, BC / ACCESSWIRE / May 20, 2020 / EastWest Bioscience's ('EastWest') (TSXV:EAST) manufacturing subsidiary, Orchard Vale Naturals ('Orchard Vale'), has seen a substantial increase in its manufacturing orders due to surging demand for health and wellness products during the COVID-19 pandemic.

Currently, Orchard Vale's production calendar is at an 8 week backlog. Orchard Vale is also preparing for the manufacturing of hand sanitizers that initially would be distributed through its sister company, Sangster's Health Centres, across its Canada wide locations and its existing independent distribution network.

To accommodate current production backlog and to ensure future orders can be produced within the acceptable industry standard of 6 weeks, the Company has put in additional shifts and leveraged the facility's 34,000 sq footage of space for efficient warehousing.

The increased demand of wellness products is aligned with market trends; single vitamins see 166% growth as consumers look to boost immunity during COVID-19 lockdown (Research and Markets, 2020). Additionally, increased consumer spending expectations for the following six months due to COVID-19 pandemic see a 21% increase in Vitamins, Minerals, herbs, or supplements. (Statista, 2020).

'We are doing what we can as a company to do our part to help the community during these hard times. We realize that our manufacturing capacity will be tested to meet these demands for wellness products and hand sanitizers. We are evaluating our Health Canada 190+ Natural Product Numbers (NPN) to prioritize production and have submitted our second hand sanitizer NPN to Health Canada. In addition, as the economy slowly starts to open up, and with on-line sales continuing to grow, we are ramping up production on Sangster's private label SKUs to meet demand from our franchises and independent distributors' says Rodney Gelineau, EastWest Chief Executive Officer.

About EastWest Bioscience Group

EastWest Bioscience is a vertically integrated wellness company with the infrastructure to become a global giant in the Hemp & CBD consumer health market. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium health and hemp products. EastWest currently has more than 200+ NPN's in its stable of products.

EastWest's consumer product lines are divided into four distinct brands: 1) Natural Advancement - natural biopharmaceutical health supplements; 2) Earth's Menu - all-natural hemp superfoods; 3) Natural Pet Science - pet food and pet supplements; and 4) ChanvreHemp - all-natural health and beauty products.

In Canada, EastWest has a 34,000 Sq. Ft, Health Canada-licensed, GMP (Good Manufacturing Practices) - certified manufacturing facility and produces premium nutraceutical brands, offering natural products for a preventive care lifestyle.

In the USA, EastWest Science USA Inc. ('Eastwest USA') has a joint venture with Azema Sciences Inc. ('Azema'), a company related by common management and directors, securing for EastWest first rights on Azema's output of bulk CBD and finished CBD products manufactured, and which are ready for sale in the USA and globally. EastWest USA, EastWest's US operating division, will be the preferred distributor for Azema's finished goods, which are products not currently in EastWest's catalogue. Additionally, EastWest will have first right of refusal to all potential opportunities relating to Azema's Kentucky-based CBD processing facility. EastWest currently has TSX approval for sale of its consumer products in 21 US States.

The joint venture provides EastWest USA with continuous supply of premium CBD, as it is developing value added CBD consumer goods for the US market for the pet, skin care, functional food and supplement categories. The joint venture will also generate additional revenue streams: EastWest USA will retail CBD material manufactured by the joint venture and market the co-packing/bottling services provided by the joint venture.

Situated on a wholly owned 6-acre property, which is currently home to its 18,000 sf CBD processing facility, Azema Sciences is one of approximately 110 licensed Hemp processors in Kentucky. The joint venture specifies exclusive access for EastWest USA to 9,000 square feet of Azema's facility, which will co-locate EastWest USA with Azema's CBD processing, tincture bottling and logistics operations. Co-locating provides EastWest USA with the real estate and resources to build out its own nutraceutical manufacturing adjacent to Azema's CBD operations, providing significant efficiencies to its logistics and warehousing of product.

With operations based in Lebanon, Kentucky, Azema Sciences is situated in the heart of Kentucky's Hemp country, with an estimated 80% of the state's CBD Hemp farming within 100 miles of the facility. Kentucky's licensed Hemp production grew to more than 42,000 open air acres and around 66 greenhouse acres in 2019. This growth is due mainly to strong commercial support from the Kentucky Department of Agriculture, being one of the first states to embrace pilot hemp programs allowing tobacco farmers to transition to hemp, and the direct political support of state legislators, Senate Majority Leader Mitch McConnell, who introduced the hemp Farming Act of 2018 that was contained within the 2018 Farm Bill.

EastWest Bioscience has used its initial capital to acquire all of the necessary assets to capitalize on manufacturing aspects and focus on the finished products of the fully integrated model. The Company continues to focus on manufacturing consumer products for our end customers, manufacturing for private label customers in the US, as well as providing co-packing services to small and independent wholesalers and retailers. The Company will continue to focus its energy on cost control and revenue generation.


'Rodney Gelineau'
Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website:
Contact: Investor Relations on 1-800-409-1930 or


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain 'forward-looking statements' under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: EastWest Bioscience Inc.

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