Before the opening bell, Laguna Blends, Inc. (CSE : LAG) (OTC : LAGBF) (FRANKFURT : LB6A.F) announced its entry into an agreement with ISO International, LLC through which it has acquired the exclusive right to market, promote and distribute seven cannabidiol (CBD) skin care products produced by Cannaceuticals of California, USA (“Canna”). Under the terms of the agreement, Laguna will be required to pay a one-time licensing fee of $100,000 and place a minimum purchase order of $1.5 million during the first two years of the initial term.
“We are excited to announce the closing of this transaction, which firmly roots Laguna in the $121 billion global skin care industry,” Stuart Gray, chief executive officer of Laguna, stated in this morning’s news release. “The pairing of our rapidly growing affiliate network with a revolutionary and clinically proven product line creates a powerful opportunity of growth and expansion.”
With the finalized deal now in place, Laguna will turn its attention toward incorporating Canna’s skin care products into its established affiliate marketing network. According to Ray Grimm Jr., the company’s president, Laguna’s management aims to have the associated products available to members of its affiliate marketing network before the end of next month.
Since announcing its intention to acquire exclusive distribution rights associated with Canna’s Swiss-Made CBD skin care line in early July, Laguna has offered prospective shareholders a number of insights into the market potential afforded by this licensing deal. In particular, the company announced highlights from the clinical studies of Canna’s skin care line, which were conducted by BioScreen Testing Services, Inc., an independent, FDA-approved lab located in the U.S. These highlights included a 100 percent overall improvement to the appearance of skin within a two-week period, with an impressive 85.71 percent of subjects noticing an improvement during the first seven days.
The clinical data supporting the efficacy of Canna’s skin care line could play a vital role in Laguna’s efforts to market the products in the U.S. and, pending regulatory approval, in Canada, Asia, Europe and Mexico. The U.S. skin care market is currently in a period of steady growth, with research forecasting a total market value of $10.7 billion by 2018. The global skin care industry, on the other hand, is expected to climb to $121 billion later this year. For Laguna, this robust market performance could foreshadow an opportunity to achieve sustainable financial growth over the coming months.
“Over the past three weeks Laguna has sent samples of the Cannaceutical skin care products to some select affiliates and within 3-7 days we received some overwhelmingly positive feedback,” Grimm stated in the news release. “Women are noticing changes in skin texture and skin tone and are eager for the skin care line to become available for purchase.”
For more information, visit www.lagunablends.com
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