HempFusion Subsidiary Sagely Naturals Launches Into 3,700 Stores at Top US Retailer

Rhea-AI Summary

HempFusion Wellness Inc. (TSX:CBD.U, OTCQB:CBDHF) announced a distribution agreement with a major U.S. retailer, set to place its non-CBD topical products in over 3,700 additional locations by April 2022. This expansion will increase its retail presence from approximately 18,000 to nearly 22,000 locations, including nine of the top ten largest Food, Drug & Mass retailers. The company reports strong initial uptake for its new Sagely Naturals product line, positioning itself for significant growth despite a challenging CBD market.

Positive

• Increase in retail presence from 18,000 to nearly 22,000 locations.
• Strong initial uptake of new non-CBD topical products.
• Strategic partnership with a major U.S. retailer allows broad consumer exposure.

Negative

• The overall CBD industry is experiencing stagnation.

New Line of Non-CBD Topical Products on Store Shelves by April

DENVER--(BUSINESS WIRE)-- HempFusion Wellness Inc. (TSX:CBD.U) (OTCQB:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness company offering premium probiotic supplements and products containing CBD, is pleased to announce a major distribution agreement with one of the largest retailers in the United States. Products from the Company’s wholly-owned subsidiary, Sagely Enterprises, Inc. (“Sagely Naturals”), are expected to be on store shelves at over 3,700 of this retailer’s locations by April 2022. The additional locations will increase the Company’s footprint from roughly 18,000 doors to just under 22,000 locations, including nine of the nation’s 10 largest Food, Drug & Mass retailers. Since launching its new line of non-CBD topical OTC pain relief products, Sagely Naturals has seen strong initial uptake, striking distribution agreements with some of the nation’s largest retailers.

Sagely Naturals Non-CBD Topical OTC Pain Relief Products (Photo: Business Wire)

“Through this distribution agreement alone, HempFusion will exceed its distribution expansion for all of 2021 as we continue to position the Company as a leading health and wellness business in the US,” said Jason Mitchell, N.D., co-founder and Chief Executive Officer of HempFusion. “With an initial launch into 75% of this large US retailer’s stores, HempFusion has the opportunity to introduce our premium wellness products to their millions of loyal consumers who consider this retailer synonymous with ‘America,’” continued Dr. Mitchell.

While much of the CBD industry continues to stall, HempFusion’s diversified portfolio of health and wellness brands and products has positioned the Company for significant growth in 2022 and the years ahead. Big box retail remains a focus of the Company, as it provides a significant strategic position for the Company in the event of regulatory change.

ABOUT HEMPFUSION

One of a select few hemp-derived CBD companies that are today fully prepared to meet or exceed expected global guidance, HempFusion Wellness Inc. is a leading health and wellness company whose family of premium consumer brands includes HempFusion™, Sagely Naturals™, Apothecanna™, and Probulin Probiotics™, one of the fastest-growing probiotics companies in the United States according to SPINs reported data.

Among a handful of CBD companies to have achieved Self-Affirmed GRAS status, the HempFusion family of brands’ product portfolio comprises 112 SKUs including USDA Organic Certified Tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, probiotic supplements and skin care products, a White Label division and more. With a strong focus on research and development, HempFusion Wellness has 43 products under development.

Available from nearly 22,000 US retail locations across all 50 states, HempFusion Wellness products are also available in China, Mexico, Ireland, United Kingdom, United Arab Emirates, South Korea and Canada and may be purchased online from each brand’s website, The Probulin Store on Amazon.com, Alibaba’s Tmall.com, the world’s largest cross-border online marketplace, and a multitude of additional e-commerce sites.

For more information, visit www.hempfusion.com.

Follow HempFusion on Twitter, Facebook and Instagram.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “forward-looking statements“) that relate to HempFusion’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result,” “are expected to,” “expects,” “will continue,” “is anticipated,” “anticipates,” “believes,” “estimated,” “intends,” “plans,” “forecast,” “projection,” “strategy,” “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the launch of the Sagely Naturals products at the retailer’s stores by April 2022, the Company’s growth and expansion plans and the Company’s other plans, focus and objectives.

Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond HempFusion’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors set forth under “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the annual information form of the Company dated March 31, 2021, and available under the Company’s profile on SEDAR at www.sedar.com. HempFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for HempFusion to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220310005364/en/

Investor Relations:

Eric Balshin

+1 437-826-9911

eric@sophiccapital.com

Company Contact:

Jason Mitchell, N.D.

Chief Executive Officer and Director

ir@hempfusion.com

Source: HempFusion Wellness Inc.

FAQ

What products will HempFusion launch by April 2022?

HempFusion plans to launch its non-CBD topical products in over 3,700 retail locations.

How many locations does HempFusion operate in after the new distribution agreement?

After the agreement, HempFusion will operate in nearly 22,000 locations across the U.S.

What is the stock symbol for HempFusion?

HempFusion is traded under the stock symbol CBDHF on OTCQB and CBD.U on TSX.

How has HempFusion positioned itself in the competitive market?

HempFusion has diversified its product offerings and focused on non-CBD health and wellness products to enhance growth.

What are the major challenges facing HempFusion in the market?

One major challenge is the stagnation of the overall CBD industry.