TORONTO, Jan. 6, 2020 /CNW/ - SLANG Worldwide Inc. (CNSX: SLNG), ("SLANG" or the "Company"), a global leader in the cannabis consumer packaged goods sector with a vast portfolio of popular brands distributed in over 2,600 stores across the United States, today announced that it is expanding into the Ohio medical cannabis market by the entering into of a licensing agreement with Standard Wellness Company, LLC ("Standard Wellness").
Pursuant to the licensing agreement, Standard Wellness has been granted an exclusive license to produce and distribute the SLANG product suite in Ohio, beginning with its category-leading O.penVAPE, Pressies, Bakked and District Edibles brands. SLANG will derive revenue for each branded product sold in the state, with sales expected to commence in 2020.
"We strive to create brand awareness early and establish relationships with consumers in attractive, new cannabis markets," said SLANG CEO Peter Miller. "Our discipline around capital efficiency makes partnerships like this very strategic in achieving our near and long-term goals for brand awareness, while giving our partners a competitive advantage and a running start in their markets."
Standard Wellness was Ohio's first vertically integrated licensed cannabis producer. Its cultivation and processing facility is located in Gibsonburg, Ohio, and it currently distributes products to every medical cannabis dispensary in the state.
"Our strategy is to partner with leading brands to bring the finest quality cannabis products to patients in Ohio and empower them to lead healthy and rewarding lives," said Standard Wellness CEO Jared Maloof. "Our agreement with SLANG will enable us to diversify our product portfolio with recognized brands and help fuel our continued growth."
Licensed medical cannabis sales commenced in Ohio in January 2019. By the end of November, nearly 75,000 patients had registered with the State Board of Pharmacy and total cumulative product sales had reached US$49 million, according to the Ohio Medical Control Program. The total market for medical cannabis sales in Ohio is expected to exceed US$500 million by 2022, according to estimates published by Cormark Securities in January 2019. Ohio is the seventh largest state in the U.S. with a population of 11.7 million.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a vast portfolio of popular brands distributed in over 2,600 stores across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG. For more information, please visit www.slangww.com.
About Standard Wellness
Standard Wellness is Ohio's premier medical marijuana brand serving patients with a full line of cannabis-based natural health remedies. The company was founded in 2017 and uses a fully integrated processing, production and dispensary system, through its sister company The Forest Sandusky LLC, to offer high quality medicinal marijuana products. Its cultivation and processing facility is located in Gibsonburg, Ohio. Standard Wellness also cultivates medical marijuana in Utah and will commence processing and production there in early 2020. Most recently, Standard Wellness was awarded cultivation licenses in the State of Missouri. For more information visit www.standardwellness.com. The Cleveland-based law firm Walter | Haverfield advised Standard Wellness on the SLANG transaction.
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2018, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
SOURCE SLANG WORLDWIDE