cbdMD Forms New Subsidiary cbdMD Therapeutics LLC

Rhea-AI Summary

cbdMD, Inc. (NYSE American: YCBD) has established cbdMD Therapeutics LLC, a wholly-owned subsidiary aimed at advancing scientific research around CBD and its therapeutic applications. Dr. Sibyl Swift and Lance Blundell will co-chair this initiative, focusing on developing novel therapies for pain, inflammation, and anxiety disorders. The company aims to replace opioid use with cannabinoid-based solutions. The market confirms a growing interest in cannabinoid medicines, highlighted by Jazz Pharmaceuticals' recent $7.2 billion acquisition of GW Pharmaceuticals.

Positive

• Formation of cbdMD Therapeutics LLC to enhance scientific research on CBD.
• Co-chairs with FDA experience signal strong regulatory backing.
• Focus on developing therapies to address pain and anxiety, potentially tapping into growing cannabinoid market.

Negative

• None.

cbdMD, Inc. (NYSE American: YCBD, YCBDpA) (the “Company”), one of the leading, and most highly trusted and recognized cannabidiol (CBD) brands, announced today that it has formed cbdMD Therapeutics LLC (“cbdMD Therapeutics”), a newly formed wholly-owned subsidiary of the Company for the purposes of isolating and quantifying the Company’s ongoing investments in science related to its existing and future products, including research and development activities for therapeutic applications.

The Company also announced that Dr. Sibyl Swift, former U.S. Food and Drug Administration (FDA) official, who serves as a regulatory consultant to the Company, and Lance Blundell, Esq. the Company’s General Counsel, will serve as Co-Chairs of cbdMD Therapeutics. The Company previously announced in February 2020 that Dr. Swift had been engaged as a regulatory consultant to oversee the Company’s regulatory initiatives and prepare its products for further certifications. From 2014 to 2020, Dr. Swift served in various capacities at the FDA. Prior to joining the FDA, from 2012 to 2014, Dr. Swift was a research biochemist within the Department of Defense (DOD) at the Armed Forces Radiobiology Research Institute (AFRRI) and an Adjunct Assistant Professor at the Department of Military Emergency Medicine at the Uniformed Services University of the Health Sciences (USUHS). In her role at AFRRI, she explored potential countermeasures and investigational new drugs (INDs) for their therapeutic potential and also potential toxicity.

“As one of the leading consumer CBD brands in the world, I believe cbdMD is in a unique position to explore the therapeutic potential of CBD and the other lesser-known cannabinoids, support scientific advancements through clinical trials, and perform toxicity studies to demonstrate the safety of cannabinoids as novel therapies. The Company has formed cbdMD Therapeutics with the mission to provide its customers with therapeutic options to replace opioids and other prescription pain killers and bring to market novel therapies for conditions where people suffer from pain, inflammation, sleeplessness or anxiety such as osteoarthritis, fibromyalgia, insomnia, and anxiety disorders. These novel therapies will be first identified through the core of cbdMD’s current dietary supplement science and research to further expand its brand’s use and acceptance by consumers worldwide. The launch of the cbdMD Therapeutics signals to the marketplace that cbdMD is committed to providing the necessary resources to ensure the success of this mission,” said Dr. Swift.

“As we have recently seen with the $7.2 billion acquisition of GW Pharmaceuticals by Jazz Pharmaceuticals, the pharmaceutical industry is recognizing the value and future potential of cannabinoid-based medicines, as well as providing further validation that significantly researched and developed medical cannabinoids may provide solutions to patients’ and their medical needs,” added Martin Sumichrast, Chairman and Co-CEO of cbdMD, Inc.

About cbdMD, Inc.

cbdMD, Inc. is one of the leading, most highly trusted, and most recognized cannabidiol (CBD) brands, whose current products include CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs and CBD pet products. To learn more about cbdMD and our comprehensive line of over 130 SKUs of U.S. produced, THC-free¹ CBD products, please visit www.cbdMD.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD and Paw CBD products.

¹ THC-free is defined as below the level of detection using validated scientific analytical tools.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 as filed with the Securities and Exchange Commission (the "SEC") on December 22, 2020, Item 1A. Risk Factors, contained in our Quarterly Report on Form 10-Q for the period ended December 31, 2020 as filed with the SEC on February 9, 2021 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005529/en/

FAQ

What is cbdMD Therapeutics LLC?

cbdMD Therapeutics LLC is a newly formed subsidiary of cbdMD, Inc. focused on isolating and quantifying ongoing scientific investments related to CBD for therapeutic applications.

Who are the co-chairs of cbdMD Therapeutics?

The co-chairs of cbdMD Therapeutics are Dr. Sibyl Swift, a former FDA official, and Lance Blundell, the company's General Counsel.

What is the mission of cbdMD Therapeutics?

The mission of cbdMD Therapeutics is to provide therapeutic CBD options to replace opioids and develop novel therapies for conditions like pain, inflammation, and anxiety.

What recent acquisition in the cannabinoid sector is mentioned in the press release?

The press release mentions Jazz Pharmaceuticals' acquisition of GW Pharmaceuticals for $7.2 billion as indicative of the growing interest in cannabinoid-based medicines.

What therapeutic areas is cbdMD targeting with its new initiatives?

cbdMD is targeting therapeutic areas including osteoarthritis, fibromyalgia, insomnia, and anxiety disorders.