ERIE, PA--(Marketwired - February 28, 2014) - Fortitude (PINKSHEETS: FRTD) CEO Thomas J. Parilla today announces that the company has entered into a joint venture agreement to obtain the USA production/sales/distribution and licensing rights for a revolutionary medical marijuana product "MariMist" for the use in the care of cancer patients with MariMedical Pharmaceuticals (MMP), a privately held company. Additional clinical applications include the treatment of nausea, anxiety and pain relief.
The terms of the JV agreement are extremely beneficial to Fortitude and its shareholders. As all revenues pass through the company, 92% will remain with Fortitude with a small royalty payment of 8% based on the wholesale price being paid to MariMedical. The agreement is for 3 years with an automatic extension for 7 years triggered when certain modest sales goals are achieved. Fortitude also has a one year option to acquire the international licensing rights for Mari-Mist, along with the right of 1st refusal for any future products solely developed by MMP.
MariMist is a pharmaceutical formulated medicinal product that is high in CBD and low in THC. This combination of cannabinoids has been shown to greatly reduce or eliminate the physcoactive effect, without minimizing the medicinal benefits of the drug. The product is derived by CO2 extraction of a hybrid sativa & indica plant resulting in cannabis oil. The oil is then blended with a pharmaceutical grade ethanol which contains no benzene and is reduced to under 5µm particle size for delivery by a nebulizer. This is a traditional medically accepted route of delivery for patients in need of palliative care. The importance of this type of delivery will be fully realized when medical marijuana finishes its transformation to become a full integrated part of best care practices. MariMist is the only 100% natural cannabis based product that is delivered by a nebulizer, a widely accepted clinical method used in hospitals and hospice care for the administration of other drug therapies.
Thomas J. Parilla, CEO of Fortitude Group, Inc., commented, "Mari Mist is set to begin full patient testing in Colorado in the very near future. Full production of the product is expected to begin in the fall of 2014. We are currently in negotiations with several labs, manufacturing facilities and established medical marijuana corporate industry experts and we expect to announce finalized deals shortly. Product packaging and distribution channels are also being finalized. Our target markets for roll out are the western states of Colorado, Washington, Nevada and California. We will add additional territories by Q 1 of 2015, with full expansion to the continental USA market plus Hawaii and Alaska by Q 4 2015." Mr. Parilla went on to say, "We will provide shareholders with additional as warranted. I am proud to not only provide our shareholders with a product that will increase the company's intrinsic value, but that Fortitude can be part of an industry and facilitate a product that will result in better outcomes for cancer patients."
The US food and Drug Administration (FDA) has recognized cannabinoid drugs to be effective to relieve nausea and to increase appetite in people with cancer. The national cancer association reports "The potential benefits of medicinal Cannabis for people living with cancer include antiemetic effects, appetite stimulation, pain relief, and improved sleep. It appears that physicians caring for cancer patients in the United States who recommend medicinal Cannabis predominantly do so for symptom management." A 2010 report from the President's Cancer Panel, a three-person panel that reports to the U.S. president on the National Cancer Program, said approximately 41 percent of Americans will be diagnosed with cancer during their lifetime
According to the ProCon.org website, as of Dec. 28, 2012 there are theoretically 2,421,069 medical marijuana users in the USA. This number does not account for recreational users or additional users who will be entering the market place from the 9 states that have November 2014 MJ initiatives on the ballots. Link: http://medicalmarijuana.procon.org/view.answers.php?questionID=001199.
Fortitude Group, Inc. is a diversified company with investments in multiple sectors of the economy targeting joint ventures, wholly owned subsidiaries and/or majority/minority positions that cross various market segments with the goal of creating a quality company that builds intrinsic value for its shareholders.
Forward Looking Statements:
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