TORONTO, ON--(Marketwired - May 18, 2015) - Easton Pharmaceuticals Inc. (OTC PINK: EAPH)
Dear Fellow Shareholders,
We would like to thank current shareholders for their support and wish to respond to various concerns directed to the company. We wish to shed light on each initiative and to clarify any misconceptions with our new sector initiatives undertaken. As you are currently aware, Easton Pharmaceutical has recently signaled its intent to becoming a more diversified company, operating in several different Industries and sectors. These sectors and initiatives, as previously announced, include its foray into the medical marijuana industry in both the United States and Canada, OTC Therapeutic products, diagnostic devices for woman, an ownership position in other medical marijuana companies, and part ownership in a cancer drug. Below are the initiatives and their status as per queries received.
Easton / BMV Medica - Common Sense Ltd. Patented Distributor Agreement
In April of this year, Easton Pharmaceuticals and BMV Medica entered into a 50/50 partnership agreement whereby both companies currently possess exclusive distribution rights for the country of Mexico from Israel-based Common Sense Ltd. and their patented product line known as VS-SENSE-OTC and VS-SENSE PRO, for the detection of Bacterial Vaginosis (BV) and Trichomonas. Easton wishes to stress that this initiative does not signify it has abandoned or changed any part of its intention to remain in the Medical Marijuana industry. The medical marijuana industry will continue to grow and many believe it will eventually result in the full legalization by the U.S. federal government, which Easton wishes to remain part of. However, Easton Pharmaceuticals wholeheartedly believe the endeavor with BMV for the distribution rights within Mexico for the patented woman's diagnostic products from Common Sense Ltd., where 1 in 3 woman will get BV at some point in their lifetime, will be approved and deliver consistent, growing sales for Easton Pharmaceuticals commencing within the next 4 to 6 months. Management believes this initiative represents a unique opportunity, which will reward shareholders and investors. The products are currently protected by international patents with approximately 12 years remaining on the patent life and have CE Certification for selling and marketing in the EU obtained under the European Medical Device Directive 98/79/EC, Number IVD000256. The products are currently being sold within the United States and Canada. Both companies have subsequently formally engaged Ackerman Pharma S.A. de C.V., a highly respected Mexican pharmaceutical company, to begin the process of submitting applications to obtain regulatory approvals for the products. The products are currently being marketed and sold in the United States through Prestige Brands in CVS, Walgreens and Rite-Aid Drug Stores under their own private label as well as under the leading Women's Health Care brands and throughout Canada in Shoppers Drug-Mart and Jean Coutu.
Easton Pharmaceuticals and BMV Medica have commenced negotiations to acquire the rights to the rest of Latin America. In addition, Easton has entered into negotiations to acquire the rights to distribute two approved cancer drugs with governments of various Latin American countries.
Medicated Markets International
In January of this year, Easton Pharmaceuticals closed on an agreement with Medicated Markets International LLC, a private NY company who have procured the rights to grower / cultivator licenses located in the City of Perris, California, (20 acres) Riverside county and one main growing location in Mendocino County, California with a total actual growing area of approximately 3 acres. The Sites have a history of no less than three years of growing Medical Marijuana for resale to Dispensaries in the Los Angeles area. A total of 200 Million restricted shares were issued towards this transaction, which will be completely operated by Medicated Markets and their management. Easton is in the process of negotiating and resolving logistics issues and will provide additional detailed updates shortly.
Easton's ownership in AMFIL's mPact GROzone Antimicrobial System is our entry into the infrastructure side of the Medical Marijuana industry on a business to business level. It is believed these products provide a clear cost saving benefit to various sized facilities of different industries including the medical marijuana, food and medical facilities. As a business product it also commands a high customized price tag in the range of 100k-150k per unit installed (based on size of area that's being serviced) and maintains quite high margins (over 50%) on initial product sales as well as maintenance contracts that follow initial installation. Residual income from the maintenance contracts will affect both the top and bottom lines. AMFIL is in the midst of completing a financial audit; Easton expects to recognize revenues from this investment and maintains an option to acquire up to 32% of AMFIL as it relates to the installation of GROzone units that AMFIL has currently shipped and installed. Updates are expected shortly.
Medical Marijuana MMPR Facility (Port Perry Ontario)
Easton owns a binding exclusive option to purchase up to 49% on this facility awaiting a Health Canada Marijuana for Medical Purposes Regulations license (MMPR). This facility has received a letter to build, which is considered to be 1 of only 25 issued. Management continues to believe a Health Canada final approval and a national MMPR grower's license is imminent based on the high level to detail in meeting the strict health Canada MMPR guidelines including upgraded security features. This exclusive purchase option agreement executed with MDRM Canada requires no additional funds to be forwarded until a final MMPR grower's license has been granted by Health Canada. Since Easton initially entered into this option agreement with MDRM Canada in June of 2014, there have been several changes and new regulations implemented by Health Canada including updated security requirements. It has recently come to the attention of Easton that MDRM Canada has renegotiated its agreement with the private Ontario company who are awaiting an inspection with Health Canada. Easton has subsequently entered into discussions to either continue with its option or to possibly terminate the agreement with MDRM Canada and request a full refund of its funds advanced and to proceed with other options in the Canadian Medical Marijuana industry. Easton expects a decision very shortly.
Easton's E-Cigarette, Vaporizer and CBD Directive
In November of 2014, Easton purchased a revenue-generating Vaporizer business from Digital Shock Media where it has launched Vaporizer products through multiple websites, currently being run by Digital Shock and other third parties. This is a new developing industry where e-cigarettes continue to grow as an industry due to the elimination of second hand smoke release into the environment and other factors. Easton has generated wholesale sales through the efforts of Digital Shock media, but is looking to expand its sales avenues, which includes a possible store location front which will coincide and share shelf space with our OTC therapeutic products.
Nutrashop Global Stores / OTC Products
In March of this year, Easton entered into a distribution agreement with Nutrashop Global for the distribution and sale of its 3 main OTC therapeutic products, (Viorra, Skin Renou HA and kenestrin Gel). All products are currently available for purchase through Nutrashop's website and through Easton's own website. Nutrashop and Easton are currently developing new products utilizing Easton's proprietary delivery matrix, which are expected to be announced and ready for sale shortly. Easton's OTC products are currently being sampled and being evaluated by several other distributor options, which includes possible shelf space within select drug stores in Canada.
Financing / Dilution
Easton and BMV Medica believe no further funding is needed to receive regulatory approval in Mexico or any other markets being negotiated in order to reach the marketing and sales stage. Funds have been allocated and set aside for all aspects of the women's diagnostic products. Easton previously received financing commitments towards it Canadian Medical Marijuana initiatives although due to extended delays in the Canadian MMPR program there is no guarantee this financing will be received. Additional financing may be required for other initiatives and possible acquisitions. Any additional financing, if needed, may be received from an expected SEC filing, however the company believes it can achieve revenues from sales of its women's diagnostic products in Mexico, which may allow for the cancellation of any other financing activities.
Easton is expecting to be shortly announcing new additions and changes to management and key advisors. The new additions are expected to implement a marketing and sales strategy towards it Common Sense Women's Diagnostic products and assure the launch will be deemed a tremendous success, as well as add much needed credibility.
Financials and Audit
The company has filed for an extension to file its March 30 quarterly financial statements, with the statements expected to be filed within the next few short days. In addition, the Company has engaged an independent auditor to perform an audit on its last two-year end financial statements. Delays to its audit are as a result of the fact the audit was initially required for a dual cross listing on a Canadian exchange which the Company subsequently decided to cancel due to what is now believed to be limited returns of a substantially smaller market. The Company continues to move forward and has every intention of completing the audit, which is to be used towards a possible SEC filing to raise additional financing, if needed and to become a fully reporting SEC issuer.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries such as medical marijuana. The Company previously developed and owned an FDA approved wound-healing drug and currently owns topically delivered drugs to treat cancer and other conditions that are all in various stages of development and approval. Easton has entered into a 50 / 50 revenue sharing agreement towards being the exclusive distributor in Mexico for world-patented women's diagnostic products. Easton has completed an acquisition that grants 40% ownership interest in Medicated Markets International LLC; a company holding Medical Marijuana growing rights in California on 20 acres (3 acre growing area). Easton has also made additional investments into AMFIL Technologies, their GROzone anti-microbial airflow system and hold an exclusive option to purchase up to 49% in a (MMPR) medical marijuana grow-op business post granting of license from Health Canada in Ontario, which has received a letter to build from Health Canada. The company's gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of Cannabidiol extracts.
For More Information Visit:
This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when certain words or phrases such as "hope," "positive," "anticipate," "pleased," "plan," "confident that," "believe," "expect," "possible" or "intent to" and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company's financial reports and filings.