Element Nutritional Sciences Acquires Patent Exclusivity for Sports Nutrition Market

Rhea-AI Summary

Element Nutritional Sciences Inc. (CSE:ELMT; OTC:ELNSF) has acquired exclusive North American rights for a plant-based amino acid formulation used in its Rejuvenate™ products. This strategic acquisition is expected to enhance Element's market presence in the sports nutrition sector with its new Promino™ product line. The North American sports nutrition market is valued at approximately US$14 billion, projected to grow at 7.8% annually, potentially exceeding US$20 billion by 2026. Element's formulation boasts significant advantages in muscle health and recovery.

Positive

• Acquisition of exclusive North American rights increases market presence.
• Promino™ formulation shows superior efficacy in muscle recovery and synthesis.
• North American sports nutrition market projected to grow at 7.8% annually.

Negative

• None.

BURLINGTON, Ontario--(BUSINESS WIRE)-- Element Nutritional Sciences Inc. (CSE:ELMT; OTC:ELNSF; FRANKFURT:93X) (the “Company” or “Element”), is pleased to announce that it has acquired exclusive North America rights for the sports nutrition market to the same plant-based amino acid formulation used in its flagship Rejuvenate™ muscle health products. Element plans to develop its line of sports nutrition products called Promino™ under the JAKTRX™ Performance Supplement line of products.

“Securing North American rights to the sport nutrition market is a major milestone for Element, as it provides a key differentiating factor in our go to market strategy. As we commercialize Promino™, we are targeting both athletes and the broader sports nutrition market as our proprietary amino acid formulation is demonstrated to have a superior impact on maintaining muscle health, increasing strength, expediting recovery and preventing muscle loss. Additionally, our formulation is plant-based, which aligns well with changing consumer preferences. We believe that Promino™ and Rejuvenate™ has the potential to disrupt existing markets given its clinical results and our team’s proven track record at scaling nutraceutical operations,” said Stuart Lowther, Chief Executive Officer.

Clinical Support

There are many clinical studies that support the efficacy of Element’s amino acid formulation as it relates to the sports nutrition industry. Highlights of the Promino™ formulation are as follows:

• It increases muscle protein synthesis by 76%¹, as compared to whey protein which increases protein synthesis by 35%²;
• It improves strength recovery by over 60% after surgery as measured by the MVC Strength Test³; and
• One of the formulation’s key components has demonstrated a 41% increase in strength in a 12-week program relative to a placebo group⁴.

Market Opportunity

The size of the North American sports nutrition market is currently estimated to be approximately US$14 billion and is forecast to grow at a rate of 7.8% annually to reach over US$20 billion by 2026⁵. Distribution of Element’s JAKTRX™ brand with the high dosage formulation is a significant growth opportunity for the Company. JAKTRX™ is particularly well positioned in the sports nutrition market as the Company’s amino acid formulation is plant-based, whereas many of the products in the sports nutrition category use dairy products as the key active ingredient.

Element’s executive team has a proven track record of innovating and marketing sports nutrition products with over 100 years of combined experience in the category. Additionally, four members of the Element executive team were instrumental in growing Iovate Health Sciences to over US$700 million in revenue.

About Element

Element is an innovative and research driven Canadian nutraceutical company specializing in the development of science-based products for the global consumer packaged goods market, with a portfolio focused specifically on men and women over the age of 50. Element’s lead product, Rejuvenate™, is a proprietary formulation that is clinically proven to assist in the rebuilding, restoration and rejuvenation of natural loss of muscle mass due to aging or other medical conditions. Element also offers JAKTRX™, an elite brand of performance supplements. Element was founded in 2015 and is located in Burlington, Ontario.

To learn more about Element, visit elmtinc.com.

More information about Rejuvenate™ can be found at: www.rejuvenatemuscle.com

Forward Looking Statements

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, to: the market opportunity for Promino™, the go-to-market strategy for Promino™ and the Company’s ability to disrupt existing markets.

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: fluctuations in general macroeconomic conditions; expectations regarding the size of the United States and Canadian health, nutraceutical and wellness markets and changing consumer habits; the viability of the Company’s products; availability of distribution channels for the Company’s product offerings; the ability of the Company to successfully achieve its business objectives; plans for expansion; successful development of the Company’s proposed products; the presence of laws and regulations that may impose restrictions or recalls on the sale of the Company’s products in the United States and Canada; customer and distributor relations; fluctuations in securities markets; and the inability of the Company to obtain adequate insurance to cover risks and hazards. 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.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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¹ David D. Church, et al. Department of Geriatrics, Donald W. Reynolds Institute on Aging, Center for Translational Research in Aging & Longevity, University of Arkansas for Medical Sciences, Little Rock, AR, USA.
² Paddon-Jones Det al. Exp Gerontol 2006; 41:215-219.
³ Ferrando A, et al. J Aging Res Clin Practice. 2013; 2(4):369-75.
⁴ Theocharis, I et al. Int J Sports Physiol Perform. 2011 Mar; 6(1):38-50.
⁵ North America Sports Nutrition Market | 2021 - 2026 | US, Canada, Mexico (marketdataforecast.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005157/en/

Stuart Lowther

Chairman, CEO and President

ir@elementnutrition.com

416-467-5229

Marc Charbin

Investor Relations

ir@elementnutrition.com

416-467-5229

Source: Element Nutritional Sciences Inc.

FAQ

What are the details of Element Nutritional Sciences Inc.'s acquisition related to ELNSF?

Element Nutritional Sciences has acquired exclusive North American rights for a plant-based amino acid formulation for its Promino™ product line, which supports muscle health and recovery.

How does the Promino™ product compare to existing sports nutrition products?

Promino™ is based on a plant-based formulation that increases muscle protein synthesis by 76%, outperforming traditional whey protein.

What is the potential market impact of Element Nutritional Sciences' new product?

The North American sports nutrition market is valued at about US$14 billion, with expectations to exceed US$20 billion by 2026, providing significant growth opportunities for Element.

What clinical support exists for the efficacy of Promino™?

Promino™ has been supported by clinical studies showing it enhances muscle synthesis, improves recovery, and increases strength significantly over placebo.