Tauriga Sciences, Inc. Enters into Manufacturing Agreement for the Production of its Cannabis/CBD Infused Chewing Gum Product
NEW YORK, NY, Jan. 02, 2019 (GLOBE NEWSWIRE) —
via NEWMEDIAWIRE — Tauriga Sciences, Inc. (TAUG) (“Tauriga” or the “Company”), engaged in building its business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities and equity investments, today announced that the Company has entered into a comprehensive manufacturing agreement (the “Agreement”) with a Maryland based Gum Manufacturer for the production of its Cannabis/CBD chewing gum product line (“CBD Gum”). The Agreement is effective as of December 28, 2018 and the Company has already paid a substantial portion of the costs pertaining to the initial production run; 8,700 units (each unit contains 8 pieces of CBD Gum).
Under terms of the Agreement, the Manufacturer has committed to produce Tauriga’s CBD Gum based on the following specifications:
- By composition, the CBD Gum will contain 10 mg of CBD Isolate
- The initial production run will be MINT Flavor exclusively
- This proprietary CBD Gum will be manufactured under the coverage of a specific U.S. Patent
- Each Production Batch, including the initial production run, is estimated to yield 70,000 gum tablets or 8,700 Units (each Unit contains 8 gum tablets).
- Integrated Quality Control Procedures: Each production batch will be tested by a 3rd Party for CBD label content, THC content (0%), and clear for microbiology.
- The packaging, for retail marketplace, will consist of 8 count (gum tablet count) blister card labeled (the “Pack(s)”) with Lot # as well as Expiration Date.
- Outer sleeve in Tauriga’s artwork and graphic design(s) and label copy
- Shipping System: Bulk packed 266 Packs per master case (“Pallatized”)
Under terms of the Agreement, Tauriga Sciences, Inc. has committed to provide the following to the Manufacturer:
- Each product order will consist of exactly 8,700 Packs (unless otherwise agreed upon by both parties).
- ½ of initial production invoice due within 3 days of execution of Manufacturing Agreement (this has already been paid by the Company).
- Provide graphic design artwork, Logo, and label design to Manufacturer.
- Trademark has been successfully filed with U.S.P.T.O.
- To implement Kosher Certification Process
- Procure appropriate Product & Liability (“P & L”) insurance policy
- Acquire Legal Opinion with respect to the confirmation of the legality to sell this CBD Gum – on the Federal Statute Level.
The Company has been meeting with a number of potential distributors over the past 2 months and is pleased with the feedback provided. Additionally, the Company has built its CBD Gum product line, specifically implementing the advice that several of these prospective distributors have offered to management. The Company is hopeful to generate revenue from its CBD Gum, during the latter part of this current operating Quarter (period: January 1, 2019 – March 31, 2019); Tauriga’s 4th Fiscal Quarter of 2019.
Tauriga’s CEO, Mr. Seth M. Shaw, commented, “Tauriga Sciences, Inc. has evaluated a number of potential opportunities during calendar year 2018. The Company believes that it has identified a potentially lucrative niche market to address, for its shareholders, and is moving forward with great enthusiasm to develop and market its CBD Gum product line. The Company is pleased to be working with an outstanding manufacturer, with significant industry experience, in launching this product. In order to hit the ground running, the Company has already been meeting with potential top tier distribution firms as well as providing product samples to dozens of potential retailers and end users.”
AN IMPORTANT COMMITMENT: The Company wishes to confirm to its shareholders, that at all times, it will remain in compliance with both U.S. Federal and individual State rules and regulations & laws that govern this sector. At the same time, the Company will be constantly monitoring the legal landscape which may experience material change(s), at any point in the future.
Studies have shown that a chewing gum product may provide a superior delivery method for distributing its key active ingredients (such as CBD), in comparison to other oral dosage forms, such as: pills, capsules, beverages, and gummies. As an individual chews gum, the CBD is released from the gum quickly and is absorbed by the Oral Mucosa, rather than the Digestive System. Bypassing the Digestive Tract allows the CBD to maintain its inherent bioavailability, and it also means that the CBD gets absorbed by the body – substantially faster than other forms of Oral Ingestion. Studies have also shown that CBD that is swallowed as capsules, beverages, gummies or edibles delivers less than 10% of the CBD shown on each respective label. With CBD Infused Chewing Gum an individual can get relief for aches and pains in rapid time, at a dose that is potentially strong enough to make a noticeable difference, and delivered cost effectively without wasting the majority of the CBD consumed.
ABOUT: TAURIGA SCIENCES, INC.
Tauriga Sciences, Inc. (TAUG) is engaged in building business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities/equity investments. The Company is currently evaluating potential acquisition candidates, as previously disclosed, to create lasting shareholder value. Additionally, the Company is working diligently to identify potential opportunities to generate revenue and leverage its considerable resources and expertise to build a diversified and sustainable business model. Please visit our corporate website at www.tauriga.com
This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 which represent management’s beliefs and assumptions concerning future events. These forward-looking statements are often indicated by using words such as “may,” “will,” “expects,” “anticipates,” believes, “hopes,” “believes,” or plans, and may include statements regarding corporate objectives as well as the attainment of certain corporate goals and milestones. Forward-looking statements are based on present circumstances and on management’s present beliefs with respect to events that have not occurred, that may not occur, or that may occur with different consequences or timing than those now assumed or anticipated. Actual results may differ materially from those expressed in forward looking statements due to known and unknown risks and uncertainties, such as are not guarantees of general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to consummate successful acquisition and licensing transactions, fluctuations in exchange rates, and other factors over which Tauriga has little or no control. Many of these risks and uncertainties are discussed in greater detail in the “Risk Factors” section of Tauriga’s Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release, and Tauriga assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. You should not place undue reliance on these forward-looking statements.