THE WHAT? Canadian wellness platform Yooma has announced that it will be discontinuing operations in China, effective immediately.
THE DETAILS Yooma also announced that CEO Ron Wardle will be leaving the company. Current CFO and President, Jordan Greenberg has been named as his successor while Joshua Lebovic has been appointed as interim CFO.
THE WHY? The decision follows that of China’s National Medical Products Administration’s move to add CBD to its List of Prohibited Use Cosmetics Ingredients at the end of May. Lorne Abony, Chairman of Yooma attests, “The government’s decision to ban the use of CBD and other cannabinoids in cosmetics eliminates the progress made by Yooma in selling CBD skincare and beauty products to Chinese consumers. However, we do not anticipate this change will lead to any revenue shortfall for Yooma this year, as the company is experiencing significant growth in other markets which has exceeded our expectations, and we expect any longer-term impact on Yooma’s business to be minimal as we focus more of our attention on these other promising markets.”