GelStat acquires Mastix Medica for restricted common stock

GelStat acquired 100% of the membership equity in Mastix Medica, LLC in exchange for 27,500,000 restricted shares in GelStat’s common stock. In conjunction with the closing of this acquisition, GelStat launches a new corporate website which can be viewed at www.Gelstat.com

Mastix Medica, specializes in the manufacturing of functional gum and tableted products in a variety of dosage forms for a diverse customer base, and for domestic and international markets. These products include cannabidiol-infused ("CBD") tableted chewing gums, chewable tablets, lozenges, mints and confections for a wide variety of customers including national brand leaders, small niche marketers, the U.S.

Military, export customers and many more. Product capabilities include the manufacture of dietary supplements, functional chewing gum infused with CBD’s from industrial hemp, functional foods and medicated confectionaries and candy. At full capacity we project Mastix’s 28,000 square foot facility could add $15 to $20 million to GelStat’s annual revenue depending on product mix.

Larry Gershman, Gelstat’s CEO, said, "The acquisition of Mastix Medica adds another dimension to GelStat that complements our present experience in product innovation and marketing. The vertical integration also enhances our gross margins on our recently introduced dietary supplement Chews 2 Lose Appetite Suppressant Gum. More importantly, the acquisition brings to GelStat a key asset and foothold in the explosive growth high-CBD/low-THC medical marijuana and hemp infused products market. Mastix Medica has recently filed for a provisional patent that allows for the infusion of hemp oil based substrates into gum powder that is yielding higher concentrations of the active ingredients as the gum is never boiled but produced at room temperature.

Robert ("Bob") Estey said, "I am delighted to become part of the GelStat team and continue Mastix’s mission of providing unique, high quality products to the market. The combination of their leading scientific advisors and marketing team with our proprietary manufacturing processes makes us a vertically integrated one-stop shop for product innovation from concept through manufacturing, clinical validation and marketing. Furthermore, Larry Gershman’s deep knowledge of the CBD market and vast industry connections have already opened up significant opportunities on a global scale potentially."