Alternate Health (CSE: AHG) (OTCQB: AHGIF), which is focused on hemp-derived CBD extraction, product development and distribution, has completed the acquisition of U.S.-based Blaine Labs, a cGMP medical product manufacturing and distribution having over 50 product SKUs available from major retailers such as Walmart, Amazon, CVS and Walgreens.
In May, Alternate Health signed a deal to acquire a 100% stake in Blaine Labs for $20 million.
Howard Mann, the CEO of Alternate Health, said that the acquisition puts his company in a better position to become a successful player in the hemp-derived CBD industry.
According to a report by industry research firm New Frontier Data, as cited by a CNN article, total sales of hemp-based products in the U.S. are expected to double by 2022 from approximately $1.1 billion in 2018.
This surge in sales outlines an increase in demand for hemp-based products from a larger share of the U.S. market and Alternate Health expects new consumers to demand more transparency from producers.
Alternate Health believes Blaine Labs experience in FDA-approved and cGMP-certified manufacturing offers a competitive edge not only in manufacturing logistics, but also in developing trust and loyalty with patients and consumers.
The company also expects that the relationships Blaine Labs has cultivated with retailers and distributors will be a key differentiator as the FDA continues its review on CBD regulations.
New Hemp-Derived Product
In addition, Alternate Health announced the launch of a new hemp-derived product called Hempnesic Pain-Relieving Gel.
The new product is currently available through Blaine Labs physician network and distribution partners, and the company is actively soliciting sales agents for international expansion.
Alternate Health’s corporate office is located in Toronto, Canada, with additional offices in Venice, California, and San Antonio, Texas.