Easton Pharmaceuticals, Inc. Provides Update on Its Medical Marijuana Initiatives

  Easton Pharmaceuticals, Inc. Provides Update on Its Medical Marijuana
  Initiatives

Business Wire

TORONTO -- August 23, 2013

Easton Pharmaceuticals, Inc. (OTC:EAPH), a specialty pharmaceutical company
that designs, develops, and markets a premium array of topically-delivered
therapeutic healthcare products, today announced updates to its Canadian and
United States Medical Marijuana initiatives.

Easton, in its quest to enter into new business segments and products, has
entered into discussions with 2 private independent companies in Canada for a
proposed joint venture or partnership where it would share in any revenues
generated in the medical Marijuana industry. Both of the companies currently
possess growers licenses within various Provinces in Canada with one of them
having affiliations within a clinical marijuana friendly state. Terms being
discussed are issuing shares of Easton stock, cash payments to be made by
Easton or a combination of both. The companies are considered well respected
and due to the fact they currently maintain growers licenses, it is believed
they would have a better chance in obtaining licenses under the proposed new
medical marijuana rules set to launch in March of 2014.

Using already approved third parties will spare Easton from going through time
consuming Health Canada hurdles and credibility background checks although the
company has not ruled this option out as it has previously involved the
services of third parties to lead it towards its own application with Health
Canada. Both third party companies presently possess licenses within various
Provinces in Canada, allowing them to grow a certain amount of marijuana
plants. The Canadian government recently approved a law to commence in March
of 2014 that would allow newly approved licensed growers under the new laws
the rights to sell and supply to regulated dispensaries who would ultimately
provide it to consumers with valid medical conditions and other reasons.
Another decision by the Canadian government regarding its medical marijuana
laws is expected to be handed down sometime in September to provide further
clarity and any proposed changes. Initially, it is expected that only an
estimated 30 to 50 or so licenses are to be issued. The license holders must
prove they have valid well secured facilities that follow all governmental
guidelines, which are to be fully inspected on a regular on-going basis. All
individuals of any such programs must undergo periodic drug testing and
thorough background checks.

In addition to its Canadian initiatives, the company maintains its strong
desire to pursue and participate in the growing trend towards medical
marijuana within certain states of the United States. Additional and more
detailed updates on its U.S. initiatives are expected shortly which may
include a possible new product possessing edible hemp. Similar products from
other companies are presently commanding premium pricing and are gaining
popularity. To be able to participate in the so called friendly states, any
licensed companies or individuals would need to utilize fulltime workers or
employees based in that particular state and follow very strict guidelines
which differ from state to state. The state of Illinois recently approved the
use of medical marijuana making it the second most populated state next to
California to have approved it. Colorado, New Mexico, Maine, Rhode Island,
Montana, and Michigan are currently the only states to utilize dispensaries to
sell medical cannabis. Connecticut will be the eighth but has yet to issue any
licenses. California's medical cannabis industry took in about $2 billion a
year and generated $100 million in state sales with an estimated 2,100
dispensaries, co-operatives, wellness clinics and taxi delivery services in
the sector colloquially known as "cannabusiness". Laws currently sitting in
other States were expected to have been heard and acted on but were put on
hold until sometime later in 2013 or early 2014.

Until such time as the Company is able to secure valid licences in both the
U.S. and Canada either through its own applications or through third party
applications, the company’s main focus will continue to be towards its Viorra
product and its other line of products that possess its reformulated
transdermal delivery system. There are no assurances that it will be
successful in obtaining the required licences or finalizing an acceptable deal
with third parties.

According to a report by the financial news firm, See Change Strategy, the
medical Marijuana industry could reach nearly $9 billion nationwide in five
years, as more states in the United States clear the way to likely legalize
marijuana for medicinal purposes. One of marijuana's greatest advantages as a
medicine is its remarkable safety. It has little effect on major physiological
functions. There is no known case of a lethal overdose. On the basis of animal
models, the ratio of lethal to effective dose is estimated as 40,000 to 1. By
comparison, the ratio is between 3 and 50 to 1 for secobarbital, and between 4
and 10 to 1 for ethanol. Marijuana is also far less addictive and far less
subject to abuse than many drugs now used as muscle relaxants, hypnotics, and
analgesics. The chief legitimate concern is the effect of smoking on the
lungs. Cannabis smoke carries more tars and other particulate matter than
tobacco smoke. But the amount smoked is much less, especially in medical use,
and once marihuana is an openly recognized medicine, solutions may be found
such as vaporization, tinctures, extracts and oils. At present, the greatest
danger in medical use of marijuana is its illegality, which imposes much
anxiety and expense on suffering people, forces them to bargain with illicit
drug dealers, and exposes them to the threat of criminal prosecution.

About Easton Pharmaceuticals Inc

Easton Pharmaceuticals is a specialty pharmaceutical company that designs,
develops, and markets a premium array of topically-delivered therapeutic
healthcare products, focused on skin and circulatory conditions that impact a
large and expanding number of consumers including health issues related to
male and female sexual dysfunction, scar and stretch marks, cellulite,
varicose veins, topical pain relievers and motion sickness. The world market
for these conditions is in excess of $10 billion.

The company's updated proprietary gel formulation is an innovative and
believed to be a unique transdermal delivery system. Easton Pharmaceuticals’
flagship product, VIORRA, is an over-the-counter aid for the treatment to
restore and improve vaginal moisture and elasticity which the company believes
has a very positive effect on women’s sexual desire and arousal, FSAD (Female
Sexual Arousal Disorder) the world market for these female conditions are in
excess of $2 billion. VIORRA is a topical, daily-use product classified by the
FDA as containing Generally Recognized as Safe ingredients.

For More Information Visit
http://www.ashleybiomedical.com & http://www.eastonpharma.com

Safe Harbor

This news release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 (The "Act"). In
particular, when used in the preceding of discussion, the words "pleased,"
"plan," "confident that," "believe," "expect," or "intent to" and similar
conditional expressions 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. 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.

Contact:

Easton Pharmaceuticals Inc.
Tel: +1(416) 619-0291
Tel: +1(347) 284-0192
Media and Investor Relations: info@ashleybiomedical.com

Contact:

Easton Pharmaceuticals Inc.
Dragoslav Milanovic
Tel: +1-416-619-0291
Tel: +1-347-284-0192
Media and Investor Relations: info@ashleybiomedical.com
 
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