KELOWNA, British Columbia, Oct. 03, 2019 (GLOBE NEWSWIRE) — Allied Corp. (“Allied”) (OTCQB: ALID) – an international medical cannabis company focused on creating and providing targeted cannabinoid health solutions to address today’s medical issues – is pleased to announce a follow up to the previously released Letter of Intent of September 11th, 2019 about Asian distribution. Allied has reached a definitive agreement with Hong Kong-based CBD Group Asia Limited (“CBD Asia”). This agreement will leverage CBD Group Asia’s capabilities to distribute Allied’s CBD-based cosmetics and natural health products into China, Hong Kong and throughout Asia. Allied is extremely pleased with the swift execution and targeted follow up to finalize this definitive distribution agreement.
Further to this, through our European partner, Allied has also produced and shipped six (6) test products to Hong Kong to be examined and discussed by a retailer-comprised focus group. Allied intends to use the results from this focus group to inform that first large production run intended to happen in Q4 2019.
The structure of the definitive agreement positions Allied to produce and deliver high end CBD products for distribution into Asia as a 50:50 joint venture with CBD Asia. CBD Asia and Allied will be 50:50 owners of this joint venture corporation that will handle all of the distribution logistics.
According to Hong Kong-based investment company Regent Pacific Group, the cannabidiol (CBD) market in China alone is forecasted to be worth USD $15 billion by 2024. The global market specifically for CBD-infused skincare products, meanwhile, is expected to reach USD $1.7 billion by 2025, according to Grand View Research.
“With CBD Asia’s well-established distribution channels and stronghold in the market, we believe that the potential for our products in Asia is extremely bright and promising, which is why we’re working to establish our market share in this emerging market,” said Calum Hughes, CEO of Allied. “This is a great opportunity for the Allied brands to enter and expand through the Asian CBD market. We are excited to explore the space and potential near-term revenue from this.” Hughes said.