TORONTO, Feb. 25, 2020 (GLOBE NEWSWIRE) — RAMM Pharma Corp. (including its wholly owned subsidiaries, the “Company” or “RAMM”) (CSE: RAMM), a leader in plant-derived cannabinoid pharmaceutical products, has entered into a definitive agreement dated February 24, 2020 to acquire Glediser S.A. operating as NettaLife™ (“NettaLife”) a leading developer of cannabis-based products for pets (the “Transaction”).
- NettaLife manufactures and distributes NettaPet™ pet foods which features full-spectrum hemp CBD nutrition available without a prescription.
- The NettaPet™ Dog formulation is the first of its kind to be registered by the Ministry of Agriculture, Livestock and Fisheries in Uruguay and the only registered CBD pet food product in Latin America.
- Commercial distribution agreements are in place for Uruguay and negotiations are in progress with Argentina and Brazil, initial sales expected in Q2 2020.
- MERCOSUR trade agreement allows for distribution into other major South American markets including Paraguay, Chile, Peru and Colombia.
- Adds leading veterinary industry expertise and pet-focused business experience to the RAMM team as well as an established sales staff with deep relationships in the veterinary industry.
- NettaLife’s platform and distribution channels to be strategically leveraged for the roll out of RAMM’s veterinary CBD products currently in the registration process.
“The strategic acquisition of NettaLife will strengthen RAMM’s expertise in the veterinary space and accelerate the registration and distribution of our veterinary products,” stated Jack Burnett, Chief Executive Officer. “The addressable market for pet care in Latin America is extremely large and we plan to be a leader in bringing the benefits of pharmaceutical-grade cannabis products to this market.”
“This represents a unique opportunity to be in the best position to develop the products and ideas that we have been working on with the NettaLife team,” stated Arturo Avalo, Founder & Chief Executive Officer of NettaLife. “The know-how and expertise gained during the past years in cannabinoid research working with cannabis-based medicine in humans gives us a fast track to improve animal welfare.”
NettaLife is a leading developer of cannabis-based products for pets and large animals. NettaLife’s products are currently manufactured under two main brands – NettaPet™ which is focused on nutrition, and NettaVet™ which is focused on the development of specialized veterinary and medicinal products. In November 2019, NettaPet™ became the first cannabis-based pet food to be approved and registered by the Ministry of Agriculture, Livestock and Fisheries (MGAP). NettaLife is led by a team of pioneers in the development of the pet and animal care industry in Uruguay and Latin America with significant veterinary industry expertise and pet-focused business acumen.
The NettaPet™ brand currently includes dog foods specially formulated for the various stages of a dog’s life. The Puppy, Adult, and Senior formulations are designed to provide nutrition suitable for the dog’s age and size. NettaPet™ can be fed to a wide range of dog breeds including herding, hound, non-sporting, sporting, terrier, toy and working groups. Hemp-sourced CBD is a powerful source of protein, vitamins, minerals and fatty acids. NettaPet products have a leading protein content of 26% and a near-perfect 3:1 ratio of Omega-3 and Omega-6 fatty acids which promote overall health. The gamma-linolenic acid (GLA) derived from hemp may help alleviate conditions including allergies, mobility and digestive issues as well as skin conditions. NettaPet™ products are made from premium hemp CBD with less than 0.2% THC and meet Uruguayan federal regulations for export to most Latin American countries. A cat food range is currently under development along with a pipeline of other products to be released in due course.
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The NettaVet™ team is developing a line of specialized CBD veterinary and medicinal products for animals. CBD has shown benefits in animals including pain and inflammation reduction, immune system improvement, skin and fur care and cognitive support. NettaVet™ products will offer a natural, holistic medical alternative for animal care and which we believe may produce therapeutic results for diagnosed conditions such as Idiopathic epilepsy, canine lymphoma and anxiety, without the negative side effects of traditional veterinary medications. CBD is renowned as a very well-tolerated medication and nutraceutical that doesn’t produce harmful side effects. In addition, CBD-based products are believed not to damage the kidneys, liver or gastrointestinal system. This business line will synergistically leverage RAMM’s pharmaceutical expertise to continue to further the development of its products which will begin being rolled out in 2020.
Leading Veterinary Team
The acquisition will significantly strengthen RAMM’s team with veterinary industry expertise and pet-focused business experience. This will include several key executives who have been actively involved in the development of the pet and animal care industry in Uruguay and Latin America as well as a specialized sales team. Key executives are detailed below:
Arturo Ávalo – CEO & Founder, NettaLife
A technical Veterinary graduate of the Instituto Agronomo Veterinario of Uruguay with a specific focus on the study of canine behavior and wellness. With over eight years of experience in the pet and veterinary profession, he was the founder and developer of Hotel Canino Carrasco, the largest pet hotel in Uruguay and also the TUVET Centro Veterinario, a well renowned veterinary clinic in Uruguay.
Ana Rodriguez – Technical Director, NettaLife
Holds an MBA and Doctor of Veterinary Medicine degree from the Universidad de la Republica of Uruguay. With more than 15 years of experience in establishing international veterinary laboratories in Uruguay, such as Boehringer Ingelheim, Elanco, Novartis, DeLaval and Pfizer, her focus is on animal nutrition and health related development.
Damian Piano – Commercial Manager, NettaLife
A Paralegal graduate from the Universidad de Montevideo of Uruguay, who developed his professional career in the pet industry for the past 10 years, successfully setting up one of the main pet related product distribution networks in Uruguay, bringing recognized international pet brands into the country.
Pet Food & Pet CBD Markets
In 2018, the global pet food market was valued at USD $83.02 billion, expected to grow USD $113.08 billion by 2025 (Grand View Research, 2019). Latin America accounts for 12.5% of this growing market (Agriculture and Agri-Food Canada, 2018). Brazil alone had 2017 retail sales of USD $5.2 billion with a compound annual growth rate of 11.1%, among the highest of countries globally. Globally the demand for pet medicines, food, and accessories has been increasing with an increase in the adoption of cats and dogs. The pet CBD market is growing rapidly and expected to surpass US$1 billion next year (Brightfield Group). Pet CBD product sales are expected to grow at a compound annual growth rate of approximately 129% through to 2025 with the hemp-derived segment leading as the largest and fastest growing segment (Market Research Future, 2019).
Endocannabinoid System in Animals
Nonhuman mammals, including dogs, cats and horses, have been shown to have endocannabinoid systems that are similar to their human counterparts: these systems employ CB1 and CB2 receptors and function through the natural production of endocannabinoids. This implies that the endocannabinoid system is not a recent evolutionary development, but rather an ancient physiological feature of mammals in general. The cannabinoids found in cannabis, particularly CBD, have been shown to have a range of therapeutic applications for certain animals, including antibacterial and anti-inflammatory properties, appetite and bone growth stimulation, and pain relief. (The Endocannabinoid System of Animals, 2019)
Terms of Transaction:
The Company will acquire all of the issued and outstanding shares of NettaLife for total consideration of $1,150,000 USD, paid in cash. The Transaction is expected to close on or before March 31st 2020, and is subject to customary terms and conditions for a transaction of this nature. On closing, NettaLife will become a wholly owned subsidiary of RAMM.
NettaLife is a leading developer of cannabis-based products for pet and animals. NettaLife’s products are manufactured under two main brands – NettaPet™ which is focused on nutrition, and NettaVet™ which is focused on the development of specialized veterinary and medicinal products. In November 2019, NettaPet™ became the first cannabis-based pet food to be approved and registered by the Ministry of Agriculture, Livestock and Fisheries (MGAP). NettaLife is led by a team with significant veterinary industry expertise and pet-focused business experience that are pioneers in the development of the pet and animal care industry in Uruguay and Latin America.
Additional information about NettaLife is available at www.nettalife.com.
About RAMM Pharma Corp.
Lead by renowned cannabis industry experts and backed by successful pioneers in the cannabis sector, RAMM is a leader in the field of cannabinoid pharmacology and product formulation for cannabis-based pharmaceuticals and other cannabis-based products. Founded in 1988 in Montevideo, Uruguay, the Company is a well established pharmaceutical and medical product business that has developed medically registered and approved plant-derived cannabinoid pharmaceutical products. The Company currently has multiple approved and registered products that have been authorized for sale in Uruguay and compassionate use in several Latin American countries, as well as a pipeline of new products in various stages of approval and development produced in the Company’s state of the art Good Manufacturing Practice (GMP) certified cannabis formulation facility. Further to its industry leading activities in the cannabis sector, the Company operates a successful pharmaceutical, cosmetic and nutraceutical product development and medical services business which has been servicing the local market for 30 years.
RAMM Pharma Corp. includes wholly owned subsidiaries Medic Plast SA, Yurelan SA and Ramm Pharma Holdings Corp.
Additional information about the Company is available at www.rammpharma.com.
For further information, please contact:
Chief Operating Officer
+598 92 223 131
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information“ and “forward-looking statements“ (collectively, “forward looking statements“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking statements relate, among other things, the Company’s strategies and objectives, and future expansion plans.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the completion of the Transaction; the anticipated benefits of the Transaction to the Company and its shareholders; the timing and ability of the Company to satisfy the conditions precedent to completing the Transaction; future growth potential of the Company on a post‐Transaction basis; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Uruguayan, Latin American, and international medical and recreational cannabis markets and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in Uruguay or internationally; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
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