Alternate Health Corp., an international leader in technology and extraction solutions for the regulated cannabis industry, signed a joint venture agreement with Oltecate Enterprises, a COFEPRIS-licensed Mexican CBD distributor, with an eye for expansion throughout Latin America.
Alternate Health’s expansion into the Latin American CBD market complements the Company’s recent US$20 millionacquisition of Blaine Labs, previously announced on May 5, 2019. With 23 years of experience producing FDA-approved and cGMP-certified medical products, Blaine Labs is uniquely positioned to manufacture a wide range of CBD products that meet international export standards. As Alternate Health rapidly expands Blaine Labs CBD product line, the Company expects Mexico to be a key growth market for future sales and a jumping off point for further distribution throughout Latin America.
“With this acquisition, we are taking another major step in consolidating the global CBD market,” said Howard Mann, CEO of Alternate Health. “We now boast the addition of nation-wide Mexican CBD licenses to our hemp-based medical product assets, including extraction, distribution and product development.”
Based in Tecate, Baja California, Mexico, Oltecate’s headquarters are strategically located along the US-Mexican border with California. Oltecate currently holds four federal CBD licenses issued by COFEPRIS, the Mexican equivalent of the U.S. Food and Drug Administration (FDA). Currently, Mexican law prohibits cannabis and hemp cultivation and extraction, but imports of CBD products are legal with the appropriate COFEPRIS license. These licenses allow Alternate Health to import and distribute products in numerous growing markets across Mexico, including:
- Medical and Pharmaceutical Products: Medical, sanitary and hygienic CBD products and CBD dietary supplements, including veterinarian uses in animals.
- Non-Medical Products: Cosmetic and topical products including makeup, lip pencils, sprays, oils and creams.
- Other Medical Products: Dermatological patches for medical uses.
- Drinks: Bottled water and water-based and water-soluble CBD products.
“The Mexican CBD market offers tremendous opportunities for growth and expansion,” said Mr. Federico Cabo, owner of Oltecate Enterprises. “With this agreement, Alternate Health and Oltecate are at the forefront of the Latin American CBD industry.”
Oltecate’s founder, Federico Cabo, has agreed to join Alternate Health’s Board of Directors, offering the Company decades of experience and deep connections throughout Mexico’s beverage and alcohol industry, including major retail chains. These relationships will be essential as the Company targets a strong retail presence across the country and expands across other major markets in Latin America. Within 90 days, Alternate Health is targeting product rollout in Mexican stores.
Alternate Health also intends to launch its CanaPass Patient Management System in Latin America’s medical CBD market. The Company intends to use its expertise in Electronic Medical Records (EMR) and medical education modules to build a direct doctor-to-patient distribution system, based on the U.S. model developed Dr. Robert Blaine of Blaine Labs in Santa Fe Springs, California. Alternate Health is also preparing to register its products with COFEPRIS to allow insurance reimbursement for medical patients.