HempFusion Wellness Inc. (TSX:CBD.U) (US:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness Company offering premium probiotic supplements and products containing CBD, is pleased to announce that a leading national publicly traded grocery retailer has awarded HempFusion with a 10 SKU private label deal officially launching HempFusion’s “Private Label” division.
This retailer (whose name is not disclosed due to non-disclosure obligations) is a large national US based company and represents a significant potential opportunity for HempFusion’s newly launched Private Label division. Due to the success of HempFusion and its family of brands & products within the retailer, the retailer has awarded HempFusion with its soon-to-launch private label offering including 10 SKUs to be distributed throughout stores nationwide. The initial order is for approximately $250,000 and is scheduled to ship in July 2021.
“We are pleased to receive this award and begin supplying our 6th distribution channel: private label,” commented Jon Visser, the Company’s Chief Revenue Officer. “We anticipate that this initial $250,000 order is just the beginning and pending sell-through velocity and distribution, we expect this account to generate north of $500,000 for HempFusion in 2021 and upwards of $1,000,000 or more in 2022.”
To fulfill current and future orders of this magnitude, HempFusion is bolstering its staff and investing further in additional structural support at its Topeka, Kansas distribution facility. This distribution expansion will include an investment in additional equipment and human capital to assure distribution efficiencies.
“This expansion of our relationship with this retailer is a testament to the trust, long standing partnership, and success that we and our branded products have already achieved,” commented Jason Mitchell, N.D., HempFusion’s Co-Founder and CEO. “We are honored to receive this award and look forward to how this has the potential to significantly contribute to the overall success of this particular retailer and HempFusion and its family of brands,” continued Dr. Mitchell.
HempFusion is a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition. HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to approximately 4,000 retail locations across all 50 states of the United States and select international locations. Built on a foundation of regulatory compliance and human safety, HempFusion’s diverse product portfolio comprises 48 SKUs including tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, Doctor/Practitioner Lines and more. With a strong focus on research and development, HempFusion has an additional 30 products under development. HempFusion is a board member of the US Hemp Roundtable, and HempFusion’s wholly-owned subsidiary, Probulin Probiotics, is one of the fastest-growing probiotics companies in the United States, according to SPINs reported data. HempFusion’s CBD products are based on a proprietary Whole Food Hemp Complex™ and are available in-store or by visiting HempFusion online at www.hempfusion.com or www.probulin.com .
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “ forward-looking statements “) that relate to HempFusion’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the Company’s “Private Label” revenue and expansion targets and plans, continued relationship with the retailer, future orders of the nature described in this news release and the Company’s other plans, focus and objectives.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond HempFusion’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors set forth under “ Cautionary Note Regarding Forward-Looking Statements ” and “ Risk Factors ” in the annual information form of the Company dated March 31, 2021, and available under the Company’s profile on SEDAR at www.sedar.com . HempFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for HempFusion to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) regarding the Company’s prospective revenue, which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. In addition, in respect of the revenue projections contained the assumptions used by the Company’s management to derive these financial projections include, among other things: (i) the Company’s ability to successfully develop its products; (ii) the Company’s pricing targets remaining in place; (iii) the Company’s ability to successfully deploy its products to this retailer; (iv) the retailer’s timely delivery of all ancillary components and services; and (v) the Company’s ability to maintain performance and quality as projects advance and product volume increases. FOFI was made as of the date of this news release and is provided for the purpose of describing anticipated sources, amounts and timing of revenue generation as it relates to this retailer, and is not an estimate of profitability or any other measure of financial performance. In particular, revenue estimates do not take into account the cost of such estimated revenue, including the cost of goods and the cost of sales. In addition, and for greater certainty, revenue estimates do not take into account the operating costs of the Company. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Jason Mitchell, N.D.
Chief Executive Officer and Director