PLANTATION, Florida, March 30, 2017 /PRNewswire/ --
CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that CDI Shanghai Management Company, Ltd., a wholly-owned subsidiary of CD International, has entered into a multi-year distribution agreement with Zhangjianjie Shengshi Agricultural Development Company, Ltd. ("Shengshi") to distribute high-grade Cannabidiol (CBD) crystal (99%), processed from industrial hemp, in the United States.
Under the distribution agreement, Shengshi will be responsible for large-scale production of CBD processed from industrial hemp in China and supply of CBD crystal (99%) up to 100 kilograms per month or 1,200 kilograms per year for distribution in the U.S. CD International has an exclusive right to distribute CBD in the United States for 10 years.
CBD is a natural concentrate extracted from cannabis or hemp and is considered a food nutrient delivering the benefits of cannabinoids without the psychotropic effects of tetrahydrocannabinol ("THC") when derived from industrial hemp. The ongoing research into the effects of CBD on a variety of diseases is expanding in the U.S., as the domestic cannabis industry opens up. Research has indicated that CBD is a non-toxic and non-addictive natural concentrate extracted from industrial hemp. According to some major research institutions and a CNN documentary, CBD has shown to be effective in treating epilepsy, Alzheimer's disease, cirrhosis of the liver and to provide relief from hangover, anxiety and stress.
CBD has been legalized in all 50 states of the U.S. The primary function of CBD is to protect the brain and nervous system, help digestion problems, relieve pain and reduce anxiety and stress. This concentrate can be widely used in nutrition supplements, skin care products, normal beverages and functional beverages.
Commenting on the CBD distribution agreement, Dr. James Wang, Chairman and CEO of CD International, said, "We are very excited to enter this brand new business to develop a new profit center. CBD supplements have become a hot spot in the health products market in the U.S. According to The CBD Report published by The Hemp Business Journal, CBD is one of the fastest growing market categories in the U.S. hemp and legal marijuana industries with a compound annual growth rate of 59%. In 2015, the CBD industry grew from a nearly invisible market a few years ago to $202 million in consumer sales, and it is further expected to grow to $2.1 billion in consumer sales by 2020. If we are able to distribute 100 kilograms per month or 1,200 kilogram per year in the U.S., we would generate over $60 million in revenues according to the current market wholesale price. Management is confident that our new business could generate substantial profit opportunities for our shareholders for years to come."
About CD International Enterprises, Inc.
CD International Enterprises, Inc. (OTC: CDII), is a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services. For more information about CD International, please visit http://www.cdii.net
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, CD International Enterprises, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements.
We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2015.
CD International Enterprises, Inc.
SOURCE CD International Enterprises, Inc.