Cannabis Connosieurs Turn to Extracts and Concentrates Amidst Decline in Flower Sales

NEW YORK, May 1, 2019 /PRNewswire/ -- The proliferation of cannabis legalization throughout North America has led to the delivery of new products within the recreational and medical marketplaces. Aside from smoking cannabis through joints or pipes, consumers have been offered new alternatives to enjoy cannabis as edibles are now among one of the most common alternatives to smoking cannabis. Predominantly, edibles are made through extracting cannabis into forms of oil or butter which is then used as an ingredient in the creation of the edible. However, the latest craze within the cannabis industry comes in the form of extracts and concentrates. The two may seem broadly similar, but they differ in the ways they are produced. Concentrates are primarily produced through methods of a mechanical process, using CO2 without heat or pressure, or by using water, vegetable glycerin, vegetable oils, and other solubles. On the other hand, extracts are made through hydrocarbon-based solvents, according to Gabe Sutton, Budtender at Five Zero Trees. Both consumers and businesses alike are now slowly shifting towards the concentrate and extract markets as retail flower sales begin to decline. The markets for these alternatives are quickly growing due to their widespread use within both the recreational and medical markets. Furthermore, these two markets are projected to be the fastest growing segments, further fueling the overall cannabis industry growth. And, according to data compiled by Verified Market Intelligence, the global marijuana market was valued at USD 42.20 Billion in 2017. By 2025, the market is projected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. AREV Brands International Ltd. (CSE: AREV), The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX-V: WTER), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), Isodiol International Inc. (OTC: ISOLF) (CSE: ISOL)

Consumers are now opting for concentrates and extracts because they are significantly more potent than flowers. Regular flower normally contains approximately 10% to 25% THC levels, while concentrates can reach heights of anywhere from 50% to 90%, according to Leafly. Additionally, while the initial investment into concentrates and extracts can be higher, they are more cost-effective when considering the product's potency-to-price ratio. For instance, Leafly notes that half gram of oil can last an occasional dabber a few weeks, while high tolerance users can consume the product within a day or two. Dabs are concentrated doses of cannabis that are made by extracting THC and other cannabinoids and turning them into a sticky, oily substance. Moreover, concentrates and extracts are generally healthier because users heat the oil rather than burning it, which can cause adverse effects on lungs. However, the concentrate and extract marketplace is very limited in research, which has hindered its widespread growth. On the other hand, research by the U.S. Food and Drug Administration suggests that vaping cannabis is a healthier option than smoking. "We have markedly more data on flowers…concentrates are still new. Concentrates can get a lot more THC into the bloodstream a lot faster. If you're supremely nauseated or in a lot of pain or about to panic, this can be a huge advantage. The flavors and aromas are detectably different but subject to personal taste," said Mitch Earleywine, a member NORML's Board of Directors and a Psychology Professor at the University of Albany.

AREV Brands International Ltd. (CSE: AREV) is currently listed on the Canadian Securities Exchange under the ticker (CSE: AREV). Earlier last week, the Company announced that it, "has worked closely with Silvertree Investments of Los Angeles, California over the past year. "Silvertree" has been actively researching, identifying and developing a strategy for AREV Brands USA Inc. to enter into the California market. A process that has involved very extensive due diligence and networking.

This lengthy process has resulted in Silvertree identifying and commencing negotiations with principle license holders in Los Angeles, King City, Long Beach, California City, San Diego and Pasadena. The mandate is to enter into 50/50 partnerships with the license holders who will continue to operate and join our network of licenses in the State.

This plan would create a select group of license holders that link with each other to form the largest alliance and network of cultivation, processing, manufacturing and distribution organization south of San Francisco in the State of California.

The combined license holders would gain access to the inside (two) cover pages in High Times Magazine and access to the seed vault owned by BC Bud Depot, a wholly owned asset of AREV. The High Times ad space drives traffic and customers to the BC Bud Depot website which in turn will direct orders to the licensed partner in the customer's county that the license holder serves.

BC Bud Depot supplies the genetics to the partners which ensures consumers receive quality products from a trusted and reliable source. AREV will work with the license holders of extraction licenses and Alternative Extracts Inc. to bring proprietary extraction to the network.

The company has issued 800,000 shares to settle $200,000.00 in debt with Silvertree. These costs were incurred in the normal course of business associated with the consulting work discussed above. The company also announces it has settled $32,326.88 in debt with 0991843 BC LTD. by the issuance of 129,307 shares all shares for debt are being issued at $0.25. This issuance is for the acquisition of two-piece encapsulation equipment, a 1000 litre ribbon blender and a tea bag machine. This equipment is in addition to the recently acquired softgel system the company owns and compliments the production equipment to be installed in the Sorrento processing facility due to be completed by the fall of 2019.

Mike Withrow, CEO stated, "We continue to methodically build on our strategy of providing the Cannabis industry with superior genetics, extraction, and formulations that are produced and sold via licensing partnerships on an International platform. To accomplish this, we are only working with seasoned professionals in the Cannabis industry. We are also very carefully managing our capital and share structure when deals are being structured."

About AREV Brands International Ltd.: AREV Brands International Ltd. ("AREV") produces and delivers functional compounds and ingredients from its extraction systems. AREV is revolutionizing the current delivery method of terpenes, cannabinoids and flavonoids. These premium ingredients and formulations are used in products targeted for sale in the natural health, medical, functional food, nutraceutical, sport nutrition and bioceutical markets. AREV innovates through extraction to produce extracts from specific selected plant and exude from trees that address 5 areas of health including Anxiety, Pain Management, Insomnia, Central Nervous System Disorders & Libido."

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The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX-V: WTER) has developed an innovative, state-of-the-art, proprietary electrolysis process that produces healthy alkaline water for a balanced lifestyle. The Alkaline Water Company Inc., with products bottled under the trademark Alkaline88®, recently announced that its wholly-owned subsidiary, A88 Infused Beverage Division, Inc., has entered into an exclusive formulation, development, and supply agreement with American Nutritional Products Inc. ("ANP"), headquartered in Carson City, Nevada. This Agreement solidifies the Company's ongoing relationship with ANP to finalize the formulations for the Company's Cannabinol (CBD) and infused products. ANP has agreed to initially develop 5 to 7 functional waters including 3 to 4 in the CBD area and 2 to 3 in the vitamin and antioxidant segment. Each will be uniquely formulated to match both consumer demands and taste profiles. Under the terms of the Agreement, A88 Infused will be granted the exclusive right to products developed by ANP, which will be used in the development of the Company's new line of infused beverages. "For over 25 years, Maria Watson, President and Chief Executive Officer of ANP, has been an industry leader in the nutraceutical world. Her formulation team has over 40 years of experience in the development and marketing of infused beverages containing CBD, nutraceuticals, and organic flavoring, making them an ideal partner to work with in the development of our new line of products. We both recognized the synergies of our companies and this agreement was a logical extension of our recently signed co-packing agreement.  The depth of knowledge and expertise provided by ANP will ensure that A88 Infused is able to introduce some of its infused beverages to market by the end of this calendar year," stated Richard A. Wright, President and Chief Executive Officer of The Alkaline Water Company.

Emerald Health Therapeutics Inc. (OTCQX: EMHTF) (TSX-V: EMH) is a Canadian licensed producer of cannabis with operations in British Columbia and Québec. Recently, Emerald Health Therapeutics, Inc. has fulfilled its first purchase order of cannabis from Yukon Liquor Corporation, signed a sales agreement with Alberta Gaming, Liquor and Cannabis (AGLC), and become officially registered by the Saskatchewan Liquor and Gaming Authority (SLGA) to supply cannabis to the Saskatchewan market. Emerald is consistently meeting its supply commitments in Ontario, British Columbia, and Newfoundland and Labrador, and is advancing prospective supply agreements with all remaining provinces and territories in order to develop a significant presence in the recreational market. Emerald's cannabis supply is provided by its Verdélite indoor facility in Saint Eustache, Québec, and Pure Sunfarms, its 50%-owned joint venture in BC that is licensed to cultivate in 1.03 million sq. ft. of its 1.1 million sq. ft. greenhouse. This facility has been scaling up production over the last four quarters and will be fully planted in April. Emerald is working to expand sources and volume of indoor, greenhouse and outdoor-grown cannabis and hemp. In 2018, Emerald acquired 500 acres of harvested hemp and expects to purchase 1,000 acres of harvested hemp in 2019. "We are pleased to provide our Emerald-branded cannabis products to the adult-use markets in Alberta, Saskatchewan and the Yukon," said Dr. Avtar Dhillon, President and Executive Chairman of Emerald. "This brings the number to five provinces and one territory across Canada and is another step in our sales strategy to become a reliable national recreational cannabis supplier."

Liberty Health Sciences Inc. (OTCQX: LHSIF) (CSE: LHS) is the cannabis provider committed to providing a trusted, high-quality cannabis experience based on our genuine care for all cannabis users and a focus on operational excellence from seed to sale and beyond. Liberty Health Sciences Inc. recently announced that it had successfully launched sales of its whole flower smokeable products as well as its pre-rolled cannabis cigarette products this past weekend. Liberty is also pleased to announce that Mr. Jeff Chan, Liberty's Vice President, Finance will serve as interim Chief Financial Officer following the previously announced resignation of Mr. Rene Gulliver as Chief Financial Officer effective April 14th, 2019. On April 19th, 2019, Liberty officially launched sales of its whole flower smokeable products and pre-rolled cannabis cigarettes in selected dispensaries across the state, under its Liberty Health Sciences house brand. This resulted in Liberty's highest grossing weekend in its operational history. "Our sales results from our first weekend of flower sales went beyond expectations," said Victor Mancebo, Interim Chief Executive Officer of Liberty. "This justifies our investment into our massive Liberty 360 facility, in which we expect to continue to increase our production capability and thereby better serve all patients across Florida."

Isodiol International Inc. (OTCQB: ISOLF) (CSE: ISOL) is focused on the nutritional health benefits that are derived from hemp and is a product development, sales, marketing and distribution company of hemp-based consumer products and solutions. Isodiol International Inc. recently announced that it has entered into an agreement on November 12th, 2018 with Record Street Brewing Co., a music culture and lifestyle branded craft-beer company based in Reno, Nevada, for the research and development of hemp-based beers and functional beverages. This partnership with Record Street will give that equipment and Isodiol's internal R&D operations a strategic home in a state that has legalized both adult and medicinal cannabis use and embraces the sale of both hemp-derived and cannabis-derived CBD products.  While federal and state regulatory restrictions generally prohibit cannabis activities by licensed breweries, there are significant opportunities to develop both alcoholic and non-alcoholic beverages in which Isodiol's hemp-derived ingredients can be utilized. This relationship also will integrate seamlessly with Record Street's pre-existing contract brewing relationship with Brew Hub LLC and the exclusive hemp-derived and cannabis-derived beverages production deal announced recently between Brew Hub and Isodiol's wholly owned subsidiary IsoBev International Inc. "We are very excited about the ability to have research and development space for both brewed and carbonated beverages and to utilize Record Street's brewing and market testing knowledge in Nevada and California," said Marcos Agramont, Chief Executive Officer of Isodiol. "This opportunity will allow us to further innovate products utilizing Isodiol's proprietary CBD ingredients that can be transitioned into commercial opportunities at scale through Brew Hub as consumer trends and the regulatory landscape continue to evolve."

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