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Be the first with the news that moves the market- EastWest Bioscience (TSXV:EAST) has announced that construction on the company’s CBD processing and bottling line in Kentucky is complete.
- The CBD manufacturing line is the result of a joint venture between Azema Sciences and EastWest’s U.S. division.
- The joint venture grants EastWest USA exclusive access to half of Azema’s CBD processing facility, and a continuous supply of premium CBD.
- In return, EastWest USA will retail and market what is produced through the venture.
- EastWest’s share price is up 16.67 per cent, with shares trading at $0.03 apiece.
Wellness company EastWest Bioscience (EAST) has finished constructing a CBD processing and bottling line in Lebanon, Kentucky.
The CBD manufacturing line is the result of a 50/50 joint venture between Azema Sciences and EastWest’s U.S. division, EastWest USA.
Hemp processor Azema Sciences owns a 18,000 square foot facility in Kentucky. The facility houses Azema’s CBD processing, tincture bottling and logistics operations.
The joint venture grants half of that space (9000 square feet) to EastWest USA, who will use it to build up the company’s Nutraceutical manufacturing operations.
The joint venture will also provide EastWest USA with a continuous supply of premium CBD.
In exchange, EastWest USA will retail and market the co-packing bottling services produced by the venture.
EastWest Bioscience CEO, Rodney Gelineau, spoke about the progress already being made.
“EastWest 2.0 has become reality. We are now starting processing, production and sale of CBD in the USA. We have started receiving purchase orders for CBD co-packing/processing, and now the hard work begins.”
Kentucky has a long history of hemp cultivation, and has recently seen significant growth in licensed production in the last few years.
This is thanks to strong commercial support from the Kentucky Department of Agriculture. The department was one of the first to embrace and encourage pilot programs in which tobacco farmers transitioned to hemp.
Kentucky’s hemp production has also been spurred on by political support from state legislators like Senator Mitch McConnell. Senator McConnell introduced the Hemp Farming Act of 2018.
While non-psychoactive CBD oil is legal in Kentucky, the use of cannabis as a drug is still illegal in that state.
EastWest’s share price is up 16.67 per cent, with shares trading at $0.03 apiece.
