Easton Pharmaceuticals Letter To Shareholders And Update

TORONTO, ON--(Marketwired - October 07, 2015) - Easton Pharmaceuticals Inc. (OTC PINK: EAPH)

Dear Fellow Shareholders,

We would like to respond to various questions directed to the company over the past few weeks and months and shed light on each initiative undertaken. As you are currently aware Easton Pharmaceutical has signaled its intent to becoming a more diversified company, operating in several different Industries and sectors. These sectors and initiatives as previously announced include its foray into the medical diagnostic and generic cancer drug industry for Mexico and Latin America, which represents a big opportunity to Easton and its shareholders. Easton would also like to update its shareholders of its initiatives in the medical marijuana industry in both the United States and Canada.

Easton - Common Sense Ltd. Exclusive Distributor Agreement
In March of this year, Easton Pharmaceuticals entered into a 50/50 profit-sharing partnership agreement with a partner whereby both companies currently possess exclusive distribution rights for the country of Mexico and the rest of Spanish speaking Latin America from Israel-based Common Sense Ltd. and their patented product lines known as VS-SENSE-OTC and VS-SENSE PRO, for the detection of Bacterial Vaginosis (BV) and Trichomonas and AL-SENSE Amniotic Fluid Leak Detection Test. Easton Pharmaceuticals has recently retained the services of Dr. Jose Tiran, a Thought Leader in women’s health. Dr. Jose Tiran and Easton Pharmaceuticals believe the endeavor with BMV for the distribution rights within Mexico and Central and South America for the patented woman’s diagnostic products from Common Sense Ltd., will be approved and able to deliver consistent, growing sales for Easton Pharmaceuticals commencing within the next 3 to 6 months.

Easton/BMV will initially launch in Mexico through medical sales reps and offer four products: the VS-Sense Vaginal Discharge diagnostic plus two treatment options: a European-approved natural lactic acid gel for when the diagnosis suggests Bacterial Vaginosis, and a terconazol-based yeast infection treatment for when the diagnostic suggests yeast infection. This is a similar triangle model Bayer HealthCare AG who has the exclusive European rights has recently launched in Europe.

Management believes this initiative represents a unique opportunity, which will reward all of its shareholders and investors. These products are currently protected by international patents with approximately 12 years remaining on the patent life and have CE Certification for selling and marketing in the EU obtained under the European Medical Device Directive 98/79/EC, Number IVD000256.

Ackerman Pharma S.A. de C.V., a highly respected Mexican pharmaceutical company, has been retained to file the regulatory documents to obtain regulatory approvals for the products in Mexico, and it is expected they will undergo a “fast-track” process through the use of government-approved third-party reviewers in order to shorten the normally long two-three year approvals process down to months.

The products are currently being marketed and sold in the United States through Prestige Brands in CVS, Walgreens and Rite-Aid Drug Stores under their own private label as well as under the leading Women’s Health Care brands and throughout Canada in Shoppers Drug-Marts and Jean Coutu drug stores.

Easton and its partner BMV will be at the Mexican National Gynecology Conference in Mexico November 1-5, 2015 and will have meetings scheduled with leading gynecologist from around Mexico and other Latin American countries as part of a pre-launch marketing strategy. This is important for two reasons: awareness, leveraging the US and European launches and now being able to offer these products in Latin America; and as a source of increased revenues for the gynecologists one of the hot topics being discussed at the Gynecologist Conference next month. As different from their US and Canadian counterparts gynecologists in Mexico are permitted to sell products such as Easton/BMV’s VS-Sense vaginal diagnostic test, the lactic acid treatment for Bacterial Vaginosis as well as the Amniotic Fluid Leak Test.

Generic Cancer Drugs Paclitaxel and Docitaxel - Biolyse Pharma

During the last quarter, Easton announced it had entered into an equal profit agreement to obtain the exclusive rights to distribute approved generic cancer drugs Paclitaxel and Docitaxel from Canadian pharmaceutical company, Biolyse Pharma for Mexico and parts of Central and South America.

Easton/BMV’s regulatory filings company (Ackerman Pharma) believes the approval can be obtained by the end of 2015 or shortly into the New Year when Easton/BMV can then start to commence sales. Easton believes the potential market for these products for the company are in the tens of millions through sales and orders through the Mexican and various other governments.

Medicated Markets International
In January of this year, Easton Pharmaceuticals closed on an agreement with Medicated Markets International LLC, a private NY company where $110,000 was advanced to Medicated Markets who maintained they procured the rights to grower / cultivator licenses located in the City of Perris, California, (20 acres) Riverside county and one main growing location in Mendocino County, California with a total actual growing area of approximately 3 acres. Easton Pharmaceuticals subsequently terminated this agreement and has initiated an action in Superior court of Ontario Canada for the return of its funds plus damages from Medicated Markets and an individual for misrepresentation and possible fraud. Easton has since initiated discussions with other third parties in an attempt to enter into another agreement for the same assets.

AMFIL Technologies
Easton’s ownership in AMFIL’s mPact - GROzone Antimicrobial System is our entry into the infrastructure side of the Medical Marijuana industry on a business to business level. It is believed these products provide a clear cost saving benefit to various sized facilities of different industries including the medical marijuana, food and medical facilities. As a business product it also commands a high customized price tag in the range of 100k-150k per unit installed (based on size of area that’s being serviced) and maintains quite high margins (over 50%) on initial product sales as well as maintenance contracts that follow initial installation. Residual income from the maintenance contracts will affect both the top and bottom lines. AMFIL is in the midst of completing a financial audit; Easton expects to recognize revenues from this investment and maintains an option to acquire up to 32 % of AMFIL as it relates to the installation of GROzone units that AMFIL has currently shipped and installed. Updates are expected shortly.

Easton’s E-Cigarette,Vaporizer and CBD Directive
In November of 2014, Easton purchased a revenue generating Vaporizer business from Digital Shock Media where it has launched Vaporizer products through multiple websites, currently being run by Digital Shock and other third parties. This is a new developing industry where e-cigarettes continue to grow as an industry due to the elimination of second hand smoke release into the environment and other factors. Easton has generated wholesale sales through the efforts of Digital Shock media, but has since decided to use another company for the distribution of these products which includes possible sales channels in Mexico and Latin America. This business segment remains a niche market for the company while its main focus is with its Mexico and Latin America Initiatives.

Nutrashop Global Stores / OTC Products
In the first quarter of 2015, Easton entered into a distribution agreement with NutraShop Global Stores, Inc. for the distribution and sale of its 3 main OTC therapeutic products, (Viorra, Skin Renou HA and Kenestrin Pain Gel) through NutraShop’s online store. NutraShop is an online wellness retailer of high quality Super Foods, vitamins and premium personal care products with a strong customer base across North America. Sales of the products were suspended during the last quarter as a result of a restructuring of the current agreement. NutraShop and Easton are currently undergoing discussions surrounding new developments for the white labeling of Easton’s proprietary delivery matrix for distribution and sale of a new line of family wellness product through NutraPharm. NutraPharm is expected to take over the existing distribution agreement as Easton’s new white label channel partner. NutraPharm is expecting to announce the new product(s) launch shortly. Easton’s OTC products are currently being sampled and being evaluated by several other distributor options, which includes possible shelf space within select drug stores in Canada.

Financing / Dilution
Easton will require additional funding to execute on the packaging following the regulatory approval of all products in Mexico and Latin America in order to reach the marketing and sales stage. Funds have been allocated and set aside for all aspects of the woman’s diagnostic products. Commitments have been received for additional financing through current directors and officers as well as other third parties which are contingent on the regulatory approvals.

About Easton Pharmaceuticals

Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries such as medical marijuana. The Company previously developed and owned an FDA approved wound-healing drug and currently owns topically delivered drugs to treat cancer and other conditions that are all in various stages of development and approval. Easton has entered into a 50 / 50 revenue sharing agreement towards being the exclusive distributor in Mexico and Latin America for patented women’s diagnostic products and two generic cancer drugs Docitaxel and Paclitaxel. Easton has also made additional investments into AMFIL Technologies, a company who own rights to a product called the groZONE anti-microbial airflow system and rightfully holds an exclusive option to purchase up to 49% in a (MMPR) medical marijuana grow-op business post granting of license from Health Canada in Ontario, which has received a letter to build from Health Canada. The company’s gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of other drugs and Cannabidiol extracts.

For More Information Visit:
http://www.eastonpharmaceuticalsinc.com
http://ecigmarkets.com
http://finance.yahoo.com/q?s=eaph
https://twitter.com/eastonpharma

Safe Harbor

This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Act”). In particular, when certain words or phrases such as “hope”, “positive”, “anticipate,” “pleased,” “plan,” “confident that,” “believe,” “expect,” “possible” or “intent to” and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company’s products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company’s financial reports and filings.