Relevium Technologies

Global Brands for the Nutraceutical and Wellness Markets

This profile is part of a paid investor education campaign.*

Overview

Relevium Technologies Inc. (TSXV:RLV,OTCQB:RLLVF;FWB:6BX) strategically acquires e-retail brands, products and technologies in the health and wellness market. The company has assets in the US and the UK and intends to expand its products into international markets such as Canada and Latin America. Relevium has developed four brands that are offered through its two subsidiaries: BioGanix and Biocannabix.

BioGanix develops a variety of weight-loss, health, beauty and fitness supplements and products for the health and wellness market. The subsidiary generates approximately $1 million in revenue per quarter and has a vast distribution network throughout the US that includes large online retailers such as Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT). Relevium has released 47 SKUs under the BioGanix brand as well as an aloe vera-based brand and an anti-aging cosmeceutical product that targets Hispanic women in the US.

Biocannabix serves the pediatric and adult medical markets with nutraceutical and pharmaceutical cannabis-based products in the US and Europe. Biocannabix has secured a 93,000-square-foot organic cultivation and processing facility in Montreal, Quebec. Once complete, the facility will house Relevium’s R&D facilities and support in-house brand development.

Relevium has also launched the LeefyLyfe brand under Biocannabix. LeefyLyfe provides hemp-based products to consumers in the UK. The company is looking to expand the brand into additional markets in Europe and the US.

Relevium is currently in the process of securing a Canadian licensing agreement for Cannakids’ intellectual property (IP). Cannakids is a leader in medical cannabis patient research as well as pediatric and adult consumer product development. The license will allow Relevium to build upon Cannakids’ existing infrastructure and standard operating procedures as the company rolls out the brand in Canada.

Relevium has an agreement in place with HempCo Canada (TSXV:HEMP) to jointly develop, brand, market and sell PlanetHemp products and brands. PlanetHemp is available through Amazon, while Relevium is pursuing additional distribution channels through other online retailers.

The company is also in the process of acquiring Sleipnir Nutrition Ltd., a UK-based health and wellness multi-brand portfolio. Through the acquisition, Relevium will receive four additional brands. Sleipnir will initially bring in US$500,000 to Relevium’s topline revenue, positioning the company for growth in the European market.

Company Highlights

  • Global cannabis market to surpass $31 billion by 2021.
  • In 2017, the global wellness market reached $4.2 trillion.
  • Global nutraceutical market to reach US$578.23 billion by 2025.
  • Vast distribution network through industry giants like Walmart and Amazon.
  • Building out 93,000-square-foot cannabis cultivation and processing facility in Montreal, Quebec.
  • BioGanix generates approximately $1 million in revenue per quarter.
  • 47 SKUs developed for BioGanix to date.
  • Acquiring Cannakids’s IP, a leader in medical cannabis patient research and pediatric and adult consumer product development.
  • Pending Sleipnir acquisition will initially bring in US$500,000 to Relevium’s topline revenue.
  • Partnership in place with HempCo Canada.
  • International expansion plans for all brands.

The Global Cannabis, Nutraceutical and Wellness Markets

The global cannabis market is expected to surpass $31 billion by 2021. Growth of the market is attributed to the increasing number of countries around the world legalizing medical and recreational cannabis and the research being conducted into CBD. After the passing of the US Farm Bill, the country has been looking into other legislation that will foster the domestic growth of the cannabis and CBD markets.

In 2017, the global wellness market reached $4.2 trillion. Within that, $1.08 trillion is attributed to the personal care, beauty and anti-aging sector and $575 billion is attributed to the preventative and personalized medicine and public health sector. As the global cannabis market grows, analysts are expecting these sectors to continue performing well in the coming years.

Another market that Relevium is targeting is the global nutraceutical market which is set to reach US$578.23 billion by 2025. The market is set to grow due to an increased demand for healthy foods and high-performance natural ingredients in nutraceutical products. The nutraceutical market has also adopted e-commerce and social media platforms as a way to market their products and increase awareness about health-related topics.

BioGanix: Serving the Americas

Relevium’s wholly-owned BioGanix subsidiary is a nutraceutical company that develops a variety of weight-loss, health, beauty and fitness supplements and products. The company is becoming one of the leading dietary supplements brands in the US due to its high-quality products. BioGanix currently drives Relevium’s revenue generation, creating approximately $1 million in revenue per quarter.

Since acquiring the BioGanix brand, Relevium has expanded its product lines and distribution channels across the US. Consumers can find BioGanix-branded products online through Walmart and Amazon.co.uk. The company offers a total of 47 SKUs through its BioGanix brand, with plans to roll-out the brand throughout Europe and Canada.

Brands and Products

BioGanix

The BioGanix brand offers a variety of supplements and nutraceutical products through Amazon and Walmart. The brand’s gold series products are available in the US and Europe. Relevium has released a total of eight SKUs and intends to release an additional 30 SKUs to market in the near term.

“Following an initial market testing period, we are now expanding our presence in walmart.com to over 30 SKUs and we are targeting the walmart.ca platform for the initial launch of the Bioganix® Gold Series brand into the Canadian market,” said Relevium Chief Marketing Officer Abis Hussain.

Curaloe

Relevium has launched a smaller brand under BioGanix called Curaloe. The brand features a range of aloe vera-based products such as supplements and skin care products that can be formulated with other plant derivatives such as hemp, ashwagandha and tart cherries.

There are over 420 aloe vera species in the Liliaceae family, which produces the well-known aloe vera gel. Aloe vera gel is used in a variety of conventional and natural products. The plant also contains 75 components with other health benefits such as vitamins, amino acids, enzymes, polysaccharides, saponins and salicylic acids. Aloe also provides 20 out of the 22 human-required amino acids.

Push and Pull System™

Relevium has also launched its Push and Pull System™, an innovative technology that offers a comprehensive skin care solution. The natural anti-aging system combines collagen protein supplements and aloe vera-based anti-aging cream. Relevium will be targeting Hispanic women in the US as they spend four times as much as Caucasian women on health and beauty products.

“The launch of Push and Pull System™ in the fastest growing segment of the health and wellness market represents a major milestone for Relevium. The launch of the system in the US Hispanic market provides a focused and disciplined new approach to tailoring product offerings to customer needs of a potentially highly responsive market,” said Relevium CEO Aurelio Useche.

Relevium intends to roll out its Push and Pull System™ in Latin America. The company has retained Latin model and TV personality Daniela Kosan to act as their spokesperson in Latin America to aid in the sale of its Push and Pull System™ and other products.

Biocannabix: Serving International Markets

Relevium’s wholly-owned subsidiary Biocannabix is focused on serving the pediatric and adult medical markets with nutraceutical and pharmaceutical cannabis-based products. Through its subsidiary, Relevium has developed two brands and is currently designing and building a fully-integrated organic cultivation and processing GMP facility in Montreal, Quebec.

The facility

Biocannabix has leased a 93,000-square-foot cannabis cultivation facility 20 minutes away from downtown Montreal, Quebec, providing access to international markets. The company will cultivate high-quality organic strains for use in high-end consumer packaged goods for health and wellness. Biocannabix will not be competing on a large scale but will focus on serving niche markets with its organic products.

The facility will be built in stages. Phase one construction will build out 10,000 square feet for cultivation. Once complete, the facility will house Relevium’s R&D facilities, which will include a pediatric research center, and support the in-house development of the company’s brands.

Brands

Cannakids

In December 2018, Relevium signed a binding LOI with Cannakids.org to secure an exclusive Canadian IP license for Cannakids. The license will allow Relevium to build upon Cannakids’ existing infrastructure and standard operating procedures as the company rolls out the brand in Canada and expands Cannakids’ patient network. There is a 13 percent royalty on any sales made on Cannakids’ products in Canada.

Cannakids is a leader in medical cannabis patient research as well as pediatric and adult consumer product development. The company has an extensive patient network and a network of trained nurses, pediatric and adult dosing experts, medical doctors and leading researchers in the US and Israel.

Cannakids distributes its products through a growing network of licensed retail locations throughout California. The company intends to expand its presence throughout the US and into international markets.

“With over four years of research, patient data and passion behind the real-life success stories with pediatric and adult patients, our investment in Cannakids is highly strategic and accretive to our shareholders,” said Useche. “We are proud to be business partners with Tracy Ryan and her team of talented and passionate professionals and we look forward to a solid and mutually rewarding relationship.”

LeefyLyfe

In December 2018, Relevium initially launched three of its LeefyLyfe hemp-based products in the UK on a pre-order basis. The company intends to launch several additional exclusive formulations as sales expand throughout Europe. Relevium also plans on launching the LeefyLyfe brand in the US as the country moves towards legalizing CBD.

“With major changes currently underway in the US to change the legal status of hemp and CBD, we believe this to be a significant growth driver for the nutraceutical industry,” said Useche.

Sleipnir: Serving Europe

In January 2019, Relevium signed a binding agreement to acquire Sleipnir Nutrition Ltd., a UK-based health and wellness multi-brand portfolio. Under the terms of the agreement, Relevium will receive four established brands in the European market: Coco Smile, Love Superfood Teas, Nakd Beauty and Health Collective. Each brand is available through Amazon and its native website.

Sleipnir is expected to head Relevium’s European expansion activities and will initiate the launch of the LeefyLyfe brand in Europe. The acquisition will initially bring in approximately US$500,000 to Relevium’s topline revenue while also positioning the company for further growth in the European market.

HempCo

In November 2017, Relevium signed an exclusive brand and product agreement with HempCo Canada for the PlantHemp brand. The two companies will jointly develop, brand, market and sell PlanetHemp and other HempCo products including proteins, seeds, oils, natural bars and pet products, among others.

PlanetHemp products are currently available online in the US and UK through Amazon. Relevium and HempCo intend to also offer PlanetHemp products online through Walmart and Costco (NASDAQ:COST) in the future.

Management

Aurelio Useche — Director and CEO

Aurelio Useche leverages over 20 years of senior management experience including COO, CFO and CEO in several private and publicly traded corporations in manufacturing, mining exploration, consumer goods and entertainment. He is a CPA, CMA and a graduate of the executive MBA program at Queen’s University School of Business. He is also a graduate of the Corporate Directors program at the University of Toronto’s Rotman School of Business and of the Masters Certificate program in Risk Management program at York University’s Schulich School of Business.

Dr. Tina Sampalis — Director and Chief Medical and Research Officer

Dr. Tina Sampalis is the founder and President of the Agoo Children’s Health and Wellness Centers and President of Vanguard Strategic Consulting. She is an oncology surgeon trained in physiology, dermatology and pediatrics. In addition to her medical career, Dr. Sampalis is also a leading researcher known for her work in the development of evidence-based nutraceuticals, including Neptune Technologies & Bioressources, where she discovered one of the primary reasons krill oil is so beneficial to human health: phospholipids. Dr. Sampalis is the named inventor of Neptune’s composition and application patents. As the former President of Acasti Pharma Inc., she led the development of a novel patented active pharmaceutical ingredient targeting the prevention and treatment of hypertriglyceridemia and cardio metabolic-disorders.

Faycal Salek, CPA, CA — CFO

Faycal Salek is an experienced CPA and financial executive who has worked for several private and publicly-traded corporations in technology, e-commerce and mining.

Abis Hussain — CMO

Abis Hussain is an experienced marketing executive with experience in influencer marketing and online digital strategy. He has worked with numerous brands and companies including Nestle, Subaru and Kellogg’s. He has also worked with pro-athletes and influencers on behalf of clients.

Andre Godin — Director and Chairman

Andre Godin is currently Executive Vice-President and Chief Financial Officer at IntelGenx. He has more than 25 years of experience in the biotech-pharma industry. He has a strong background in capital markets, finance and operations. He held several high level positions such as CEO, CFO and Vice-President of pharmaceutical and nutraceutical companies. Godin is a member of the Canadian Chartered Professional Accountants and the Canadian Institute of Chartered Accountants. He holds a Bachelor of Business Administration degree from Université du Québec à Montreal.

Michel Timperio — Director

Michel Timperio currently holds the position of President of the Cannabis Business and Head of Strategic Development at Neptune Wellness. He has been employed by Neptune since 2010, and served as chairman and member of the Board of Directors from 2000 to 2008. He obtained his Bachelor of Commerce at Concordia University in Montreal, Quebec. With a natural entrepreneurial character, he launched his own distributing business. Many years later, Timperio built a start-up venture in residential construction from 2001–2010. He has worked for large corporations, including Armstrong World Industries and Reichhold Chemicals, where he held senior management business development positions. He has also retained a political career for six years.

Pierre Bertrand — Director

Pierre Bertrand, President of Essilor Canada, is a senior executive with international experience in Marketing, Finance and Manufacturing, including multiple years of award-winning Marketing and Brand Management and proven track record of excellence in financial roles eye health, pharmaceutical and biotechnology. Pierre holds an MBA from the University of Windsor and a BA from the University of Concordia.


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