$ETST Growth Through Product Development, JVs and Acquisitions

• 12 more U.S. states likely to approve medicinal or recreational use of cannabis in 2018
• Hemp-derived CBD market on course for CAGR of 55 percent over next five years
• Ventures in both MMJ and recreational marijuana hedge bets

The tide of cannabis legalization sweeping over North America continues to rise despite intractable federal prohibition in the United States. In the U.S., 29 states and the District of Columbia allow cannabis for medical use. In nine of those jurisdictions, adult recreational use is also permitted. Another 12 are considering easing restrictions on cannabis use by the end of the year. In Canada, the recreational market is set for opening by fall. As a result, the cannabis market outlook is bright. A recent report valued the global legal cannabis market at $14.3 billion in 2016 and projected a compound annual growth rate (CAGR) of 21.1 percent until 2024, to reach $63.5 billion (http://cnw.fm/W6fPx). In the fastest growing segment of this market is where you will find innovative biotechnology company Earth Science Tech, Inc. (OTC: ETST). The hemp-derived CBD market, in which it operates, is ballooning at a CAGR of 55 percent. At that rate, it will cross the billion-dollar mark in five years. With its ventures in leading edge, cannabinoid-based pharmaceutical and nutraceutical products, ETST is poised to share in that market growth.

Fuel is being added to the cannabis fire. In November 2018, initiatives allowing recreational use are likely to be on the ballot in six states, including Connecticut, Delaware, Michigan, New Jersey, Ohio and Rhode Island. Vermont has already been there and done that. In January 2018, the state legislature passed a bill allowing recreational use, the first and only state to do so prompted by legislative initiative, rather than by being put to voters at ballot. In five more states – Kentucky, Missouri, Oklahoma, South Dakota and Utah – legalization questions on medical marijuana may face voters in November 2018, according to Newsweek  (http://cnw.fm/iK1HV). If cannabis continues on its roll, 41 states and DC will have legalized cannabis for medicinal purposes, while 15 and DC will permit adult recreational use, by the end of 2018.

To enter this brave new world of cannabis liberalization, ETST is developing a portfolio of new products while aggressively pursuing growth through joint ventures and acquisitions. In this vein, newly created division Cannabis Therapeutic Inc. will develop proprietary cannabinoid-based nutraceuticals and pharmaceutical products based on an existing CBD patent. The company continues its activities in the hemp-derived cannabinoid (CBD), nutraceutical, pharmaceutical and medical device markets. In addition, it is pursuing a vigorous program of R&D and continued development of its marketing and distribution channels.

The company’s purchase of Canna Inno Laboratories Inc. is already paying off. The acquisition, partly designed to gain access to Canadian government funding, has scored on that front. In March 2018, ETST announced that Canna Inno Laboratories had received a supporting grant for innovation in the pharmaceutical industry from the Ministère de l’économie, des sciences et de l’innovation of the Government of Québec.

This first grant is earmarked for the pre-launch processes on the company’s three CBD-based nutraceutical provisional patent products. The pre-launch process includes a series of pre-clinical in vitro trials to fight breast cancer and neurodegenerative disorders. Thereafter, patent applications will be submitted, with the products expected to be commercialized as nutraceuticals during the waiting period. The company also plans to apply for more funding under Canada’s Scientific Research and Experimental Development Tax Credit program, among others. Earth Science expects that, through this new subsidiary, about half of all R&D expenditures will be covered by grants.

ETST is also venturing into the recreational market. A joint venture with Karmavore SuperFood is set to manufacture a new chocolate product, and one with Varsity Group, LLC, a kanna ingredient based e-liquid company, will give Earth Science a presence in the recreational vape/smoke market.

For more information, visit the company’s website at www.EarthScienceTech.com

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