Yield Growth Adds 6 New Countries in South America to Distribution Network for its Urban Juve Hemp Skin Care Line
The Yield Growth Corp. (CSE:BOSS, OTCQB:BOSQF, FSE:YG3) is pleased to announce that on November 21, 2019 it entered into an addendum agreement to add the territories of Costa Rica, El Salvador, Ecuador, Argentina, Panama and Peru to its existing distribution agreement with Organic Medical Growth OMG3 Inc. (“OMG3”) for the exclusive distribution of Urban Juve products in Colombia and Brazil for a term of 5 years.
Yield Growth expands distribution of Urban Juve line in South America to include Costa Rica, El Salvador, Ecuador, Argentina, Panama, Peru, Colombia and Brazil
OMG3 is in the process of distributing Urban Juve hemp-infused products in Colombia and other countries of Central and Latin America. The first products to be offered will be Urban Juve’s Face Moisturizers and its signature Anti-Aging Serum. The first purchase order for 3,500 units has been placed and will be delivered once the products are registered for sale in Colombia. Registration of these products in Colombia is expected to be completed in early 2020.
OMG3, through an exclusive 10-year distribution agreement, has access to more than 9,000 points of sale in Colombia (pharmacies and specialized stores). Through the same distribution partner, OMG3 can reach more than 44,000 retail locations in other countries in South America, including Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth and OMG3 have now expanded their distribution agreement to cover all of these territories.
In addition to this channel, OMG has partnered with LATAM’s on-demand delivery giant Rappi, as the first to have its cannabis products available on the platform across Colombia. Rappi was founded in Colombia in 2015 and has become the unicorn of the LATAM start up scene having just received $1 billion in venture capital funding from Softbank. Rappi is located in 55 cities across 7 LATAM countries including Brazil, Argentina, Chile, Colombia, Peru, Uruguay, and Mexico and plans to expand to 100 new cities by the end of 2019. OMG has signed an exclusive agency agreement with Ariadna, LATAM’s largest independent marketing communications group based in Colombia, with a regional team of over 700 specialists in 15 countries and delivering services to 22 countries in the Americas. With cannabis being such a new emerging industry, OMG will be utilizing Ariadna’s skills to build its data technology, measure consumer behaviour and build a data centre that will prove valuable for the successful activation of OMG’s products into the various markets and channels across LATAM. Ariadna will build campaigns for OMG that will influence its brand reputation and brand equity in LATAM. From traditional-digital media planning to search, affiliate marketing, content amplification, ecommerce and influencer products, OMG will immediately capture all of its data to build what is nonexistent in LATAM in the cannabis category today.
“We are very pleased to welcome Urban Juve to our distribution portfolio and exclusively distribute their products in South and Central America. In addition to creating in-house and co-branded hemp seed and cannabis-based product lines, our strategy is to bring major international brands to the market in the areas of cosmetics, therapeutic and pharmaceutical products,” says Jorge Diaz, President & CEO of OMG3. “We strongly believe that the Urban Juve products will be an excellent addition to the current retail offer, finding their way to customers across borders due to their natural formulas and benefits. Urban Juve products will be initially distributed in Colombia, and we look forward to working with their team on expanding the reach within our network throughout the Americas.”
According to Goldstein Research, the Latin America cosmetics market reached a value of USD $31.98 billion in 2017 and is anticipated to grow at a CAGR of 4.49% during the forecast period 2017-2025.
Urban Juve products are now fully registered for sale in the European Union and are for sale in retail stores in Canada and the U.S. Agreements are in place to distribute Urban Juve in Canada, Greece, Cyprus, Romania, Bulgaria, Serbia, Colombia, Brazil and now also Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth is currently in talks with distributors to add the United Kingdom, Germany and other European countries to the Urban Juve distribution network.
About Organic Medical Growth OMG3 Inc.
Organic Medical Growth OMG3 Inc. (“OMG”, or “Company”) is a Canadian company with a fully integrated cannabis operation in Colombia, established to produce the lowest cost GAP and GMP certified product and distribute cannabis consumer product goods to the largest retail and ecommerce
distribution network throughout Latin America (“LATAM”). Through its Colombian partner Ortix, and its 100% owned controlled subsidiary OMG Colombia, OMG has access to a proven distribution channel of over 44,000 pharmacies and has partnered with on-demand delivery giant, Rappi, as the first company to sell cannabis-derived products through their e-commerce platform. Part of the strategic direction for the company will be a creation of its own e-commerce platform. OMG is equipped with world-class cannabis and products experts. To implement, oversee and execute its production, the company boasts internationally recognized industrial-scale breeders, cultivators and extractors. Coupled with consumer product goods activators who have worked with leading global brands, OMG brings decades of experience to ensure that its integrated model is a competitive advantage. OMG3 also owns 100% of Estado Verde S.A.S, a Colombian company that has cannabis related licenses and permits, including the License for the cultivation of Psychoactive Cannabis (THC) and the License for the cultivation of Non-Psychoactive Cannabis (CBD). The company has entered into a joint venture for a 4,000 hectares hemp production in Colombia. OMG3 is positioning itself to become the largest producer and distributor of cannabis products in South America.
About The Yield Growth Corp.
The Yield Growth Corp. is developing and selling hemp, marijuana and mushroom products in what the Global Wellness Institute reports is a $4.2 trillion-dollar global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers and Aritzia. Its all natural hemp skincare brand, Urban Juve, has signed distribution agreements in Canada, Colombia, Brazil, Greece, Cyprus, Bulgaria, Romania and Serbia. Yield Growth’s Wright & Well brands are launching a THC/CBD line of topical and edible products in Oregon this month and a CBD from hemp topicals line in California in 2020. Through its subsidiaries, Yield Growth has over 200 proprietary beauty, wellness, edibles and beverage formulas for commercialization. It has filed 12 patents to protect its extraction method and formulas. Yield Growth is in revenue through multiple streams including licensing, services and product sales.
Investor Relations Contacts:
Penny White, President & CEO
Kristina Pillon, Investor Relations
The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, “forward looking statements”) under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, and sale of, and demand for, Urban Juve, Wright & Well, Flourish Mushroom Labs, Jack n Jane and UJ Beverages products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.