eSense-Lab Ltd (ASX: ESE)
, a life science research and development company engaged in creating natural plant-based products, announced that it is in the process of streamlining the expenditures to increase focus on product development as well as the commercialization activities.
The purpose of streamlining the corporate and administration expenditure is to reallocate the funds to other areas. The company has plans to commercialize the existing suite of products and also to develop new products.
eSense-Lab has a set of strong research and development team. Its R&D team is currently working on the existing product of the company and is also engaged in the development of new products with an emphasis on the medicinal and recreational cannabis opportunities. The team remains focused on demonstrating its capabilities by combining its terpene blends with the cannabis-derived raw material to generate various products for the end users for multiple market segments. Some of these include e-liquids, lotions for skin care, lotions for inflammation, ointments for local pain and wound healing, lip balms, and edible sweets. These, when combined with terpene blends of ESE, resulted in strong aroma and flavor-enriched experience along with the medicinal benefits.
As per the announcement made by ESE on 6 December 2018 and 7 February 2019, the company has entered into various distribution agreements. The agreements with distributors have reached a maturity phase. Further, from the discussion with the distributors, it was found that the products were well received till date. There is a scope for further expansion of the distribution in the upcoming months. The company is also receiving new orders for the products, along with market and product opportunity in the near future.
Based on this data, the company is working proactively to look for further commercialization opportunities in different jurisdictions and markets. In order to support the expansion of its products, the company will be attending various trade conferences, where it will be promoting its existing suite of products that have been developed.
eSense is already active in the growing global vaping market through the marketing of e-juice under white label products. Now, it is exploring other commercialization avenues as well to expand its operation in the CBD markets. The announcement this year indicates that the CBD products have reached the sales of $367 million and a CBD market intelligence company, New Frontier, engaged in monitoring industry expects that the market would reach $1.2 billion by 2020. The statistics say that in 2017, around 25,500 acres of land was used for growing hemp. Almost in 19 states, hemp was grown, where 70% of the land was devoted to CBD.
Combining all the above data and the prospect of the CBD market along with the strong R&D team of ESE, one can expect a better future for the company in terms of revenues. The US CBD market has expansive growth in majorly three segments, which are hemp-derived CBD, marijuana-derived CBD and pharmaceutical CBD and there are possibilities that these three segments will capture around one-third of the total $1.9 billion market.
By the end of the trading session on 26 March 2019, the shares of ESE closed at A$0.021, up by 16.667% as compared to its previous closing price. The company has a market capitalization of A$3.41 million and around 189.68 million outstanding shares.
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