Agreement Is Company’s Second Multi-Million Dollar, Long-Term Contract Under Its Industrial Hemp Processing Operation
DENVER, July 16, 2019 (GLOBE NEWSWIRE) -- United Cannabis Corporation (CNAB) (the “Company” or “United Cannabis”) today announced it has been contracted to provide a single customer with its hemp-derived CBD isolate oil for a period of 100 weeks. The fair market value of the agreement is estimated to be between $30 to $42 million, based on mutually agreed-price adjustments. The CBD isolate will be processed at the Company’s 14,300 square foot, state-of-the-art extraction facility in Mead, Colorado.
Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, “This is our second material agreement since launching our Mead facility in June, validating our move into hemp production and processing. Together these agreements represent seven times the revenue than we reported in 2018, and we are still only at a fraction of our existing capacity.”
“The demand for hemp-derived CBD-infused products has exploded since the passing of the Farm Bill last December, however there are still only a handful of states that have established markets, and Colorado is leading the way. Our ability to succeed while navigating the regulatory guidelines gives us a real competitive advantage as we move into other markets. We expect to launch similar facilities in South Carolina, Tennessee and Illinois by year-end, and have our sights on California, New York, and Florida,” Blackmon added.
About United Cannabis Corporation
United Cannabis Corporation is a biotechnology company dedicated to the advancement of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients around the world. The Company develops, produces and distributes proprietary cannabis-centric products and technologies, including its patented product brand, Prana Bio Nutrient Medicinals, and has established a strong presence in the hemp-derived CBD market, with state-of-the-art grow, processing, testing and production facilities in Colorado and South Carolina. United Cannabis also licenses its intellectual properties relating to the legalized growth, production, manufacture, marketing, management, utilization and distribution of medical and recreational marijuana and marijuana-infused products. Most importantly, United Cannabis is always driven by its underlying mission to help people in pain.
United Cannabis trades on the OTCQB under the symbol CNAB.
For further information, please visit www.unitedcannabis.us.
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Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933, are subject to Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbors, created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and other results and further events could differ materially from those anticipated in such statements. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.