Business
Kalytera to Acquire CBD Extraction Business
Kalytera to Acquire CBD Extraction Business.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\nBusiness Will Be Amongst Largest Such Operations in U.S.\n Transaction Will Provide Near-Term Path to Revenues SAN FRANCISCO and TEL AVIV, Israel, June 27, 2019 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the “Company” or “Kalytera”) announced today that it has signed a Letter of Intent (“LOI”) to acquire a majority interest in Oregon 01, LLC (doing business as “Clean Bi Design”), which will operate a hemp-based cannabidiol (“CBD”) extraction facility in Amity, Oregon. Under the LOI, Kalytera has agreed to invest USD $3.5 million for the acquisition of a 51% interest in the business. Closing is expected to occur on or about October 1, 2019. Kalytera’s CBD Extraction BusinessThe Clean Bi Design extraction business will be among the largest such operations in the U.S., capable of producing 600 kilograms of CBD isolate per shift, per month. The extraction facility will be both GMP certified and FDA compliant, and equipped with state-of-the-art equipment for extraction, distillation and isolation. The facility is scheduled to commence operations by Q4 2019. “Kalytera is focused on establishing a leadership position at the interface between both medical and consumer CBD markets,” stated Robert Farrell, President and CEO of Kalytera. “With the acquisition of Clean Bi Design, we will become a vertically integrated industry player, with both development programs for CBD pharmaceuticals, as well as a CBD production facility capable of providing GMP quality CBD for U.S. and international markets. Most importantly, this transaction provides Kalytera a near-term path to revenues. We have the necessary relationships with growers and customers in place to enable start of operations within six months, and we expect to report initial revenues from CBD isolate sales by Q4 2019.” “For the consumer CBD market, it is vitally important that we be able to produce pure CBD that is both GMP and FDA compliant, and our Oregon operation will be both GMP and FDA compliant,” stated Farrell. “For the medical market, we are developing CBD pharmaceuticals, including our late-stage clinical program developing CBD for the prevention of graft versus host disease (“GVHD”), and earlier-stag...