Relevium Technologies

Global Brands for the Nutraceutical and Wellness Markets

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

Overview

Relevium Technologies Inc. (TSXV:RLV,OTCQB:RLLVF,FWB:6BX) is a wellness portfolio company that currently operates through two wholly-owned subsidiaries: BGX E-Health and Biocannabix Health Corporation.

BGX E-Health LLC, based in Orlando, Florida seeks to acquire and operate e-retail brands in the health and wellness space in order to build a portfolio through which it can innovate through the introduction of high growth and trending products.

The company currently operates through three major brands: Bioganix®, Pushpullsystem® and LeefyLyfe®, which on a combined basis offer a variety of health, skincare and fitness supplements for the health and wellness market. The subsidiary generates over $1 million in revenue per quarter and has a well-defined distribution network throughout the US that includes large online retailers such as Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT). In total, the company has 47 SKUs under the BioGanix brand as well as an aloe vera-based brand of anti-aging cosmeceutical products that target Hispanic women in the US.

Biocannabix Health Corporation Inc., based in Montreal, Quebec is an integrated biopharma company focused on endo-cannabinoid medicine for pediatric applications. The Company is building a global ecosystem of science, manufacturing and distribution that includes Canada, Colombia and Europe.

Biocannabix develops proprietary formulations serving the pediatric and adult medical markets with nutraceutical and pharmaceutical cannabinoid products. Biocannabix has executed a letter of intent to acquire a 30 percent interest in Weedsense Inc., a late-stage applicant for standard processing and medical sales license based in Montreal, Quebec. Once complete, the facility will house Relevium’s distribution and R&D facilities to support in-house brand development.

Aurelio Useche, CEO of Relevium stated: “Our investment into Weedsense provides Biocannabix with the capability to import, export, warehouse, package and sell to pharmacies and hospitals in a secure and compliant manner. This is another milestone in our vertically integrated model for the pediatrics market.”

Biocannabix is also in the process of acquiring Lifeline Pharma SAS, a Cali-based cultivation and extraction company in Cali, Colombia. Lifeline is in the process of securing three licenses which include extraction and manufacturing, cultivation with THC and non-psychoactive cultivation. The license would also allow domestic sales in Colombia, the exportation of cannabis and to conduct domestic scientific research. Lifeline Pharma is currently building an EU-GMP extraction facility and has the option to construct up to 2.6 million-square-feet of cultivation space and full registration of 668 genetic strains with ICA, The Instituto Colombiano Agropecuario.

Relevium’s wholly owned subsidiary Biocannabix Health Corp has also secured 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.

Company Highlights

  • Company operates in the CPG Health and Wellness market, which in 2017 reached $4.2 trillion
  • Global cannabinoid market is expected to surpass $31 billion by 2021.
  • Global nutraceutical market to reach US$578.23 billion by 2025.
  • Vast distribution network through industry giants like Walmart and Amazon.
  • Pending LOI to acquire 30 percent of a late-stage applicant for standard processing and medical sales license.
  • Lifeline acquisition is expected to provide Relevium with an EU-GMP extraction facility, up to 6 million-square-feet of cultivation space and three licenses with scientific research, domestic sales and export capabilities.
  • The company’s OTC business generates approximately $1 million in revenue per quarter through its three major brands
  • 47 SKUs developed for BioGanix to date.
  • Relevium has acquired Cannakids’ IP, a leader in medical cannabis patient research and pediatric and adult consumer product development.
  • Relevium has partnered with SOS Cannabis Inc. to help medical cannabis patients seek retroactive and proactive reimbursement free of charge.
  • 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 subsidiary BGX E-Health LLC, 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.com 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, eBay 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’s former Chief Marketing Officer Abis Hussain.

Curaloe Premium Aloe Vera

Relevium has launched a smaller brand under Bioganix ®, which is manufactured in the Caribbean with premium organic aloe vera. The brand features a range of aloe vera-based products such as supplements and skincare 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 skincare solution. The natural anti-aging system combines collagen protein supplements and aloe vera-based anti-aging cream. Relevium intends to target 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,” stated 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 its spokesperson in Latin America to aid in the sale of its Push and Pull System™ and other products. The company is also looking to sell its system in south Florida, Texas, California and Mexico.

Heart and vision care products

Relevium launched a new line of omega fish oil-based formulations that target inflammation, heart and vision care. The two formulated products, CardiaPro™ and VisionPro™, target inflammation to support specific health functions, such as heart activity and vision.

“We have started the process of shifting towards scientific-based formulations, targeting niche and focused product offerings in high demand, such as the case of inflammation,” stated Mr. Hussain. “Our heart and vision formulations will be sold primarily through social media and through some of our major market places. However, we are also pursuing a brick and click strategy thus extending our offering through health stores.”

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 in the process of acquiring a late-stage applicant for standard processing and medical sales licence located in Montreal, Quebec. The facility in currently being built to euGMP standards. Weedsense Inc. intends to be fully licensed no later than Q4 2019 and obtain euGMP certification shortly thereafter.

The Distribution

Biocannabix has entered into a Letter of Intent with WeedSense Inc., a late-stage applicant for medical sales and standard processing. Relevium’s subsidiary Biocannabix will gain the ability to import, export, warehouse, package and sell endo-medical nutraceuticals and medical food products though pharmacies and hospitals within the Canadian marketplace. The company intends to distribute endo-medical cannabis products for the pediatric market in Canada. Biocannabix will not be competing on a large scale but will focus on serving niche markets with its specifically formulated cannabis products.

Once complete, the facility is expected to house Relevium’s R&D facilities, which are expected to include a pediatric research center and support the in-house development of the company’s brands including Cannakids.

Lifeline Pharma

Biocannabix is in the process of acquiring the shares of Lifeline Pharma SAS, a Cali-based cultivation and extraction company in Colombia. Lifeline is currently in the process of securing three licenses; extraction and manufacturing, cultivation with THC and non-psychoactive cultivation. These licences will also allow for scientific research, domestic sales and export capabilities.

The acquisition of Lifeline is expected to provide Biocannabix with 100 percent organically-grown cannabis with access to over 600 registered genetic strains and a stage two flower capacity of approximately 170,000 kg per year at an estimated cost of $0.53 per gram. The deal is also expected to provide the company with the opportunity to build out an EU-GMP extraction facility and the ability to trace and audit the process through blockchain technology.

Lifeline’s facility is located in Rozo, Valle del Cauca, in the heart of the sugar cane enclave seven minutes away from the international airport. The property is 10 minutes away from Cali’s downtown core which boasts a population of over three million people.

The facility is expected to be developed in three stages. The initial five hectares contain local offices, a laboratory, a fully-enclosed greenhouse and 200,000-square-feet of open-air greenhouses. Lifeline has the option to expand the facility up to 2.2 million-square-feet of open-air greenhouses or up to 6.5 million-square-feet of cultivation space.

SOSCannabis partnership

Relevium has partnered with SOS Cannabis Inc., a multi-disciplinary law firm headquartered in Québec, Canada that helps medical cannabis patients seek retroactive and proactive reimbursement. Through the partnership, Relevium intends to provide its pediatric customers with the ability to obtain free legal representation to seek reimbursement for the costs of medical cannabinoid therapy.

“As we prepare to enter the pediatric endo-medicinal market in Canada with an initial 10 CannaKids® formulated products, not only are we providing parents with a natural alternative and/or health support mechanism, but now we are able to provide them with the ability to seek reimbursement from governmental agencies without any costs,” said Useche.

Brands

Cannakids

In May 2019, Relevium acquired 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. Cannakids 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.

Relevium’s 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

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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