SAN DIEGO, June 17, 2019 /PRNewswire/ -- Khrysos Industries, Inc. a wholly owned subsidiary of Youngevity International, Inc. (NASDAQ: YGYI), a multi-channel lifestyle company operating in three distinct business segments including a commercial coffee enterprise and its newly acquired commercial hemp enterprise announced today that it has entered into a 5 year Supply Contract with Magu Maiden Farms, LLC to provide extraction services and end-to-end processing to produce isolate, water soluble isolate, distillate, and water-soluble distillate hemp derived products. Extraction and post processing fulfillment and revenues are anticipated to begin in the fourth quarter of 2019 with revenues forecasted at $60 million through 2024 based on current market conditions and assuming, among other things, our ability to secure buyers for the produced product and the supplier's ability to supply the biomass for extraction and processing.
"We are excited to add this new long-term contract to our portfolio. We have strategically targeted multiple long-term relationships that we believe places Khrysos in a stronger position to leverage the expansion taking place within the post processing area of our business," said Dwayne Dundore PhD, President of Khrysos.
"We are very impressed with the Khrysos business strategy. This arrangement allows Magu Maiden Farms to concentrate on growing and expanding our operations, while Khrysos leverages its ability to implement extraction and post processing to our mutual best interests," said Alan Nusbaum, President of Magu Maiden Farms.
Maria Rubiano, co-founder of Magu Maiden Farms said, "The Magu - Khrysos partnership is a win-win collaboration which will not only accelerate our growth this year, but should enable us to scale each year over the next 5 years."
"The Khrysos Industries multi-dimensional distributed business model is gaining momentum," said Dave Briskie, President and CFO of YGYI, about its wholly owned subsidiary Khrysos Industries. "The team at Khrysos has executed multiple projects including the buildout and move to our post processing facilities and the completion of our assembly operations. We continue to see that our Pre and Post Processing expertise, combined with the capabilities of our Analytical testing lab INX, provides a distinct competitive advantage within the Hemp Space."
About Khrysos Industries, Inc.
Khrysos Industries is a leading manufacturer of commercial hemp-based CBD extraction, post processing equipment, and end-to-end processor of CBD isolate, distillate, water soluble Isolate, and water-soluble distillate. It's subsidiary, INX Laboratories provides a broad range of testing services including potency analysis for its supply partners of hemp derived CBD products. Khrysos provides hemp growers, feedstock suppliers, and CBD crude oil producers the use of equipment, intellectual capital, production consultancy, tolling services, and wholesale CBD channel sales capabilities. Khrysos Industries was acquired by Youngevity International (NASDAQ: YGYI) on February 12th, 2019. Be sure to visit us at http://www.khrysosglobal.com, like us on Facebook <https://www.facebook.com/Khrysos-Industries-319252092134375/> and follow us on Twitter, or contact us at mailto:[email protected].
About Youngevity International, Inc.
YGYI, Inc. (NASDAQ: YGYI), is a leading omni-direct lifestyle company offering a hybrid of the direct selling business model, that also offers e-commerce and the power of social selling. Assembling a virtual Main Street of products and services under one corporate entity YGYI offers products from the eight top-selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, fashion, essential oils, photo, as well as innovative services. The Company was formed in the course of the summer 2011 merger of Youngevity Essential Life Sciences with Javalution® Coffee Company (now part of the company's food and beverage division). The resulting company became Youngevity International, Inc. in July 2013. For investor information, please visit YGYI.com. Be sure to like us on Facebook and follow us on Twitter.
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Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and includes statements regarding revenues beginning under the Supply Contract in the fourth quarter of 2019, revenues being forecasted at $60 million through 2024, and strategically targeted multiple long-term relationships placing Khrysos in a stronger position to leverage the expansion taking place within the post processing area of the Hemp business. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to commence revenues under the Supply Contract in the fourth quarter of 2019 and achieve revenues of $60 million through 2024, market conditions for hemp derived products remaining at current levels, our ability to secure buyers for the products we produce under the Supply Agreement, our ability to use our strategically targeted multiple long-term relationships to place Khrysos in a stronger position to leverage the expansion taking place within the post processing area of the Hemp business, and our ability to increase capacity and capabilities of the extraction technology, our ability to continue our international growth, our ability to continue our coffee segment growth, our ability to leverage our platform and global infrastructure to drive organic growth, our ability to improve our profitability, expand our liquidity, and strengthen our balance sheet, our ability to continue to maintain compliance with the NASDAQ requirements, the acceptance of the omni-direct approach by our customers, our ability to expand our distribution, our ability to add additional products (whether developed internally or through acquisitions), our ability to continue our financial performance and the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Youngevity International, Inc.
President and Chief Financial Officer
YGYI Investor Relations
SOURCE Youngevity International, Inc.