Abacus Health Products Completes its Business Combination and US$15.0 Million Financing

Published: February 1, 2019

Abacus Health Products Completes its Business Combination and US$15.0 Million Financing

Abacus Health Products, Inc., an Ontario corporation formerly known as World Wide Inc., has completed its previously announced business combination with Abacus Health Products, Inc., a Delaware corporation.

Abacus is a company engaged in the development and commercialization of over-the-counter (OTC) topical pain-relieving medications which contain organic and natural ingredients, including CBD, a cannabinoid-rich hemp extract from Cannabis sativa L plant. Abacus products combine science with organic and natural ingredients to provide effective and safe pain relief. Abacus’ products are aimed at the rapidly growing market for topical pain relief, are based on proprietary patent-pending technologies and are registered with the U.S. Food and Drug Administration (the “FDA”).

Abacus currently offers its two product lines across all 50 states of the United States:

– CBD CLINICTM (B2B) products are sold exclusively to registered health practitioners such as chiropractors, acupuncturists, massage therapists, and physical therapists. The products are available in several formulations to address incremental levels of pain.
– CBDMEDICTM (B2C) products are sold directly to consumers through retail pharmacy chains as well as through an e-commerce platform and are segmented into several categories based on types of pain: Active Sport, Back & Neck, Muscle & Joint, Arthritis and Massage Therapy.

Abacus’ sales strategy for its CBDMEDIC products is focused on establishing strong relationships with, and distribution by, retail pharmacy, mass and grocery store markets, and to support sales through an e-commerce platform. Abacus has directly engaged in discussions with some of the largest retail pharmacy chains and is in the process of entering into agreements with leading national brokers who sell consumer health care products to the retail pharmacy, mass and grocery store market, and expects to start selling through these channels in 2019. Abacus expects the retail pharmacy channel to be a key distribution channel and a driver of sales.

The CBD CLINIC product line is sold only to professional practitioners through a distributor network and through the Abacus e-commerce platform. Abacus’ sales activities in this market are focused on maximizing the breadth and quality of its distributor network as well as maximizing direct sales to practitioners who have registered with Abacus through an inside-sales team. Abacus believes its dual channel approach to healthcare practitioners will allow it to efficiently reach the majority of healthcare practitioners in the United States.

Abacus’ products are manufactured in accordance with cGMP manufacturing standards and in a FDA-compliant and audited manufacturing facility, which ensures consistent high quality of product.

Abacus is also developing a pipeline of other CBD products addressing additional medical indications and targeting the health and wellness segments.

“At Abacus our focus is on delivering safe, effective and long-lasting pain relief products. We are thrilled to reach this important milestone and become a public company which will allow us to aggressively pursue the significant market opportunity that has come about following the recent passing of the 2018 US Farm Bill. We look forward to introducing our products to consumers across the United States over the coming months.” said Perry Antelman, CEO of Abacus.