DELRAY BEACH, Fla., March 04, 2020 (GLOBE NEWSWIRE) --
Let us begin by expressing our gratitude to all of our shareholders for your commitment and trust as we move towards what is ramping up to be the most exciting year to come for Exactus Inc., which would not be possible without you.
Before we talk about our growth strategy for 2020, we will recap how we were able to navigate the uncertainty in a challenging year for the industry as a whole. 2019 was a transformational year for Exactus as we shifted our entire business into a new industry, replaced the legacy executive team, and built out a diverse board of directors.
Following the 2018 Farm Bill, the company engaged in product development, supply, and management agreements with Ceed2Med, LLC to penetrate the emerging hemp industry. Through these agreements, Exactus secured an annual supply of industrial-scale hemp products (CBD) along with key industry experts and vast industry relationships.
During the first half of 2019, the company also acquired a 50.1% ownership interest in a 200-acre hemp farming operation located in the renowned Emerald Triangle in Oregon. This allowed us to secure a consistent and high quality source of flower and biomass to expand the Company’s portfolio of hemp-derived products. The acquisition provides a reliable, compliant source of raw materials, which is vital to ensure consumers are receiving quality hemp.
Toward the end of the year, the company completed its first harvest and began incorporating the crop into its supply chain operations. The supply chain has enabled the full traceability of our products through the simple scanning of a QR code, providing customers with full transparency, verification, third-party testing analytics, and traceability from the seed to the finished product.
Throughout 2019, we have planted the seeds for a foundation for long term success in the hemp industry. Exactus established high quality sources of supply, forged partnerships with top-tier manufacturers to expand our offerings and presence in the market. The goal is to develop and acquire brands to expand the product offerings and increase market share.
While 2019 was a challenging, yet successful year for the Company, we have positioned ourselves for what is trending to be a breakout year for 2020. We started 2020 strong by entering into a supply and distribution agreement with the CBG market leader Hemptown USA, opening a new revenue source to distribute Hemptown’s specialized cannabinoids, including top-flower, biomass and raw materials (crude, isolates, distillates, and water-soluble).
The industry has faced some headwinds in this emerging market, with competitors closing down, regulatory uncertainties, and constraints in the capital markets to name a few. Exactus is clear on its vision and our team is moving forward towards executing its plan and building the foundation to create long-term shareholder value. With the current structure in place, we are attracting industry leading talent such as our most recent addition of Derek Du Chesne as our Chief Growth Officer. The Company is pleased that we are on track for Q1 gross sales to exceed gross sales of the entire prior 2019 calendar year. Overall we are excited for the pipeline of new developments, and are confident we have the right people in place to execute on our strategy.
We will continue to expand our production, diversify product offerings, launch a white label platform, and improve processes as we develop new partnerships that will enable accelerated growth for years to come. As the hemp industry continues to evolve, Exactus has been deliberate in our approach to build a global enterprise that will remain at the forefront of brand and product development leading the hemp industry towards mainstream consumer markets for decades to come.
We look forward to keeping you updated on our progress and appreciate your vote of confidence.
Executive Management Team & Board of Directors
About Exactus, Inc.
Exactus Inc. is dedicated to introducing hemp-derived phytocannabinoid products that meet the highest standards of quality and traceability into mainstream consumer markets. The Company has made investments in farming and has over 200 acres of Cannabinoid-rich hemp in Southwest Oregon.
Hemp is a federally legal type of cannabis plant containing less than 0.3% THC (tetrahydrocannabinol), which is the psychoactive component of the cannabis plant. After over 40 years of prohibition, the Agricultural Improvement Act of 2018, known as the 2018 Farm Bill, legalized hemp at the federal level. Hemp production will be regulated by the United States Department of Agriculture (USDA) and the states. As a result, in 2019 hemp was generally removed from the Controlled Substances Act (CSA) and enforcement by the Drug Enforcement Administration (DEA).
For more information about Exactus: www.exactusinc.com.
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our most recent Form 10-K for the fiscal year ended December 31, 2018 filed with the Securities and Exchange Commission (the "SEC") on March 29, 2019, and in other periodic and current reports we file with the SEC. If any of these risks were to occur, our business, financial condition, or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor" below.
Safe Harbor - Forward-Looking Statements
The information provided in this press release may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "plans," "expects," "intends," "will," "potential," "hope" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic and current filings with the SEC, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Chief Strategy Officer
Released March 4, 2020