Cannabis Strategic Ventures (OTCPK:NUGS), a company that is no stranger to deal activity, said Thursday that it has partnered with True Promise Beauty for the purpose to developing new skincare products infused with cannabidiols, or CBDs.
CBDs have been growing in popularity with consumer education on the benefits of the key cannabis and hemp constituent. CBD, initially thought to be pharmaceutically inactive, has a growing body of evidence supporting a litany of uses, including recently being approved by the Food and Drug Administration as the active ingredient in Epidiolex, a drug by GW Pharma (NASDAQ:GWPH) indicated for two rare and serious type of epilepsy.
Per the deal, True Promise is sharing its proprietary hemp derived CBD infused formulas and products with Cannabis Strategic Ventures in order for the Hollywood-based company to set-up new distribution channels.
The agreement tasks True Pharma to develop a novel CBD skincare product to become part of Cannabis Strategic Ventures brand portfolio. Distribution will initially target the U.S. market.
True Promise is led by Emmy nominated makeup artist Gail Johnson. Johnson’s team is comprised on accomplished chemists that have developed products featured on popular media outlets, such as The Ellen DeGeneres Show, Good Day LA, the LA Times and more.
Amongst other medicinal benefits, CBD has been shown to treat inflammation and reduce sebum production in the skin. Sebum is oil made by the sebaceous glands found around hair follicles. It plays a role in a number of skin condition, including acne.
CBD is also believed to have the capacity to provide a therapeutic benefit in controlling psoriasis and atopic dermatitis (eczema), positioning it as a viable participant in the skincare market that Grand View Research forecasts to reach $177 billion by 2024.
Little clinical research has been conducted due to cannabis remaining a Schedule I drug, alongside heroin, at the federal level in the U.S. With cannabis reformation sweeping across the U.S. (and Mexico and Canada), cannabis advocates are hoping for re- or de-scheduling cannabis, which will open the door to unfettered research.
The announcement is the latest in a recent news barrage from NUGS that has included acquiring Asher House Pet CBD brand and Fitamins CBD brand, starting production of a cannabis filtration device and more as the company remains heavily active in the burgeoning cannabis space.
Shares of NUGS traded as low at 5.8 cents as 2017 was winding down before absolutely taking off, printing as high as $7.13 in early January before giving back a chunk of the gains.
The stock moved to a high of $5.94 last month and then consolidated again. Shares are up Thursday following the partnership news, gaining 5.4% at $4.63 just after the noon hour on Wall Street.
This article provided by NewsEdge.