VANCOUVER, BC / ACCESSWIRE / July 11, 2019 / The Yield Growth Corp. (BOSQF) (BOSS.CN) (YG3.F) is pleased to announce it has entered into a definitive agreement on July 10, 2019 with Melorganics Hellas for distribution of Urban Juve products in Greece and Cyprus.
Pursuant to the agreement Melorganics Hellas will act as the exclusive retail distributor and non-exclusive e-commerce distributor for Urban Juve products in Greece and Cyprus. To maintain exclusivity in the territory, Melorganics must purchase a minimum amount of Urban Juve products of $300,000 in Year 1 and $500,000 in each subsequent year. The initial term of the agreement is three years from the date of first delivery, subject to one year renewal terms if the distributor meets its minimum purchase requirements. Greece is currently enjoying surging foreign and local investment, and the country legalized cannabis for medical reasons in 2018, creating new opportunities for cannabis companies.
“This is the first of many territory-specific distribution agreements we expect to enter into,” says Penny Green, CEO of Yield Growth. “We intend to generate significant sales revenues by aligning ourselves with different distributors that have strong networks in diverse regions. We are currently in negotiations with distributors for France, Poland, the United Kingdom and Turkey with upcoming meetings set to discuss South America, Germany and Portugal.”
Urban Juve recently announced its first product has received a Compliance Certificate and is approved for sale in the European Union. It has plans to register ten more products for sale in the EU in the upcoming months. European marketing efforts will begin in the fall, including a product feature in the September issue of British Vogue, with an expected publishing date of August 2nd.
Yield Growth also has several CBD product lines planned for launch this fall, which are intended for the U.S. and European markets. Brightfield Group estimates that the European CBD market will boom over the next four years. The market was estimated at $318 million in 2018 and is expected to grow over 400 percent through 2023.
“CBD is just starting to take hold in Europe, with both product availability and consumer awareness still quite limited. This is a great opportunity for developed brands to enter and expand through Europe with far less competition than we’re seeing in the U.S.” says Bethany Gomez, Brightfield Managing Director.
Melorganics Hellas plans to enter the Greek and Cypriot markets with a full line of CBD products. The company is in the process of securing exclusive rights and strategic alliances with leading companies both in Greece and Canada; companies that are focused on the development of unique health products and nutraceuticals utilizing cannabis and botanical oils. The company is founded by Athanasios (Tom) Vachliotis (a Greek and Canadian Citizen), and John Philpott, who both have proven success in different business ventures. Vachliotis has deep ties to Greece and many past business successes. Philpott is the CEO of CanAm Physician Recruiting Inc., Canada’s premier physician placement firm. He was the CEO of Canabo Medical Corp., which obtained a public listing in 2017 (TSX.V:CMC ) and merged in 2018 with Aleafia Health Inc. (TSX.V:ALEF ) in a transaction valued at $40 million and resulting in a combined operation with a market cap over $200 million. In 2019 the TSX.V announced Aleafia as one of the top 50 best run companies listed on the exchange for 2018.