SOURCE: Easton Pharmaceuticals, Inc.

January 29, 2014 08:00 ET

Easton Pharmaceuticals Moves Towards Formerly Engaging Leading Legal Expert on Medical Marijuana Licence, as Well as Moving to Next Level of Medical Marijuana Negotiations With Request for Term-Sheet and Final Due Diligence Documents

TORONTO, ON--(Marketwired - Jan 29, 2014) - Easton Pharmaceuticals Inc. (OTC: EAPH) a specialty pharmaceutical company that owns, designs, develops, and markets an array of topically-delivered drugs and therapeutic / cosmetic healthcare products, today announces It has moved to the next level of medical marijuana negotiations towards a possible investment / partnership with a private Canadian Company. In addition, Easton Pharmaceuticals is moving towards signing a contract to retain and hire a senior legal expert on Medical Marijuana in Canada to file a growers / distributorship license on behalf of Easton Pharmaceuticals.

Negotiations have progressed to the next level with a private Canadian company who in November of 2013, submitted a highly respected detailed application with the Canadian government towards obtaining a distributorship license. Industry professionals and various insiders consider the application to be extremely strong and is believed will eventually receive approval in the near term. Easton management and consultants were impressed enough to request a list of items for its final stage of due diligence in an attempt to come to a fair and equitable agreement. Management at Easton Pharmaceuticals are impressed with a plan to possibly make an agreement with various doctors and a compassion club that presently maintains 1500 patients who on average, it is estimated each person in the compassion club currently spends a total of $700 per month on marijuana for medicinal purposes. Easton has between 4 to 6 weeks maximum to close on an agreement acceptable to both parties.

Although Easton Pharmaceuticals is moving towards attempting to close on a possible agreement with a third party, Easton is not depending entirely and putting all of its hopes on this one company and initiative. Regardless of the high level discussions, there are no assurances that a deal acceptable to Easton Pharmaceuticals will be executed as market valuations may prevent a deal. However, in the company's quest to enter into the medical Marijuana Industry, Easton is very close to executing an engagement / retainer agreement with a leading legal expert in the Medical Marijuana industry with the intent of having an application drafted and filed on behalf of Easton Pharmaceuticals. The attorney and the legal firm will be completely responsible to be lead project manager and hire security firms, engineers and architects who will conform the warehouse and facilities to adhere to strict Health Canada Standards for its application. Eastons Consultants including various medical doctors will be utilized in the application. The Company has been advised that an agreement with any other third party companies will not interfere with Eastons own application. The engagement agreement with the aforementioned industry leading legal firm and consulting expert is expected to be executed within the next week to 10 days, barring any unforeseen obstacles. The legal firm is highly respected and has previously consulted or are currently in the process of consulting the government of Uruguay with its own Marijuana laws. Any license applications and approvals are to serve the entire country of Canada (33 Million) which is similar in size to the State of California.

All company initiatives which includes, the aforementioned Medical Marijuana, Viorra and other therapeutic / cosmetic products, its minority interest in cancer drug XILIVE as well as other drugs previously purchased are as a result of financing thus far received with more committed through various accredited investors. Additional discussions are under way for other forms of financing thought of as more conducive to the company and its shareholders.

Recent positive developments in the United States, Canada and other countries such as Uruguay have added fuel and optimism to the industry and what is possibly considered a vast and extremely profitable business for participants in this industry. As of Jan. 01, the world's first pot shops opened for business in Colorado, with more planned for Washington State. In Uruguay, the first country to legalize marijuana, the government will oversee the sale of Marijuana this spring, and in Canada, where public support of pot has never been higher, new medical marijuana laws will usher in a free market that produces high quality cannabis to support a rapidly growing number of users. In the Unites States there are 20 states that permit medical marijuana use with New York State planning to do the same. Two of the 20 states plan recreational use with other states also considering it. A recent CNN survey had 55% of Americans support legalizing Marijuana, up from 16% several years ago. According to a report by the financial news firm See Change Strategy, the medical Marijuana industry could conservatively reach nearly $9 billion nationwide in the United States within 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 is believed to have 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. It is believed, 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 marijuana 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

Easton Pharmaceuticals is a specialty pharmaceutical company that owns, designs, develops, and markets topically-delivered Drugs and therapeutic healthcare products, focused on Cancer and other health issues related to male and female sexual dysfunction, wound healing, pain, motion sickness, scar and stretch marks, cellulite, varicose veins and other conditions. The company's gel formulation is thought to be an innovative and unique transdermal delivery system. Easton Pharmaceuticals product "VIORRA", is an over-the-counter aid for the treatment to restore and improve vaginal moisture and elasticity which is believed to have a positive effect on women's sexual desire and arousal, FSAD (Female Sexual Arousal Disorder) the world market for these female conditions are conservatively estimated to be in excess of $2 billion. VIORRA is a topical, daily-use product classified by the FDA as containing Generally Recognized as Safe ingredients.

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