Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF) offered up some exciting news Monday morning that will see the company expand its CBD portfolio and gain exposure to the medical CBD market. Chemistree entered into a funding agreement with doctor-led medical cannabis company The Physician's Choice CBD (PCCBD).
The Physician's Choice CBD's principals, Dr. Julian Grove and Dr. Peter Kubitz are board-certified practicing physicians who have over 15 years of experience in private practice and specialize in pain management. The company has been dedicated to the research, development, and utilization of the highest quality of hemp-derived cannabidiol (CBD) combined with well-studied and effective supplements to aid patients in the regulating a range of ailments, from pain and inflammation to migraines and nerve pain.
The investment is a move in the right direction for Chemistree, which is a Vancouver-based investment company that is focused on making strategic investments in the US cannabis sector.
"This investment in The Physician's Choice CBD is a great opportunity for Chemistree,” said Karl Kottmeier, Chemistree’s president, in a statement. “Their collective education and practical experience are industry-leading and their commitment to the health of their patients and to developing real solutions to pain management with cannabidiol-based supplements is truly inspiring.”
PCCBD, which was only established last year, has already developed nine full-spectrum CBD products, all of which are available online and distributed through healthcare providers across the US. Despite being fairly new, the products are already doing very well on the market, with the company securing approximately $150,000 in sales in its first quarter.
PCCBD set out to tackle the difficulties that come with treating patients who suffer from chronic pain with prescription pain medication, as long-term use can lead to a myriad of other problems including side effects, end-organ damage and the potential for addiction and abuse. Outside of pain medication, the doctors also offered patients physical therapy, interventional therapies, and complementary treatments such as massage, acupuncture, chiropractic, and naturopathic medicine. Unfortunately, they found that this was often not enough.
“Managing various pain syndromes with medications that do not exacerbate severe medical conditions and behavioral risk factors is an ongoing challenge for medical professionals," explained Dr. Grove. "This has been a driving force in the development of a product line of cannabidiol products, aiding in the management of specific pain syndromes and improve a sense of well-being.”
The investment into PCCBD will give Chemistree an ownership stake in the company, provide exposure to a new industry and further expand its access to the US cannabis market.
"The investment we are making into PCCBD gives us exposure to an entirely new industry and we are excited to assist wherever we can to see PCCBD continue to grow its sales and product offerings into a multi-state success," said Kottmeier.
Chemistree's investment in PCCBD comes a month after the company closed a prospective offering and concurrent private placement for a total of $10.8 million CAD. The company said it would use the funds to expand its facilities in Washington, launch the Sugarleaf brand in California and continue the licensing, development, and build-out, of its Desert Hot Springs property.
Chemistree was also recently granted a conditional use permit by the City of Desert Hot Springs for its 9.55-acre property, which will allow cultivation in two 128,000 square foot greenhouses and access to an additional 40,000 square foot building for the processing, manufacturing, and distribution of cannabis products.
Chemistree's share price reacted favorably to the news. By 1:00 pm EST, Chemistree's share price was $0.69 CAD on the Canadian Securities Exchange, up $0.02 (+2.99%).
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