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GelStat Corporation Signs Binding Definitive Agreement to Acquire Mastix Medica, LLC

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Acquisition Expected to Add $2.0 Million in Revenue in the 2nd Half of 2014

PALM CITY, FL -- (Marketwired) -- 06/05/14 --

GelStat Corporation (PINKSHEETS: GSAC), a company engaged in the research, development, marketing and branding of innovative Over-the-Counter (OTC) consumer healthcare products, is pleased to announce it signed a definitive agreement to acquire Mastix Medica, LLC. The final closing of the acquisition is expected to take place on or before July 7, 2014. The acquisition is a significant milestone for GelStat and is expected to add over $500,000 in revenue in the third quarter ending September 30, 2014. 

Larry Gershman, GelStat's Chairman and 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 profitability of 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 high CBD/low THC industrial hemp and medical marijuana market. We are also excited to be adding Bob Estey to our management team as he brings a wealth of financial management experience as well as manufacturing capabilities to the GelStat team."

Robert ("Bob") Estey said, "I am delighted to become part of the GelStat team. The combination of their leading scientific advisors and marketing team with our unique, proprietary manufacturing processes makes us a vertically integrated one-stop shop for product innovation from concept through manufacturing, clinical validation and marketing. Furthermore, Larry's deep knowledge of the CBD market and vast industry connections worldwide have already opened up significant opportunities in this rapidly growing market." 

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Mastix Medica was founded in 2009 to develop niche healthcare products in underutilized, emerging dosage forms like tableted chewing gum, chewable tablets and lozenges. Using an in-house product development team, Mastix Medica develops custom tablet formulations that incorporate dietary supplements for companies competing in a variety of markets, including energy, immune support, weight loss, pain relief and dental health. Mastix Medica has developed and manufactured products for a wide range of customers including companies with national brands like Airborne® and Jakks Pacific, Bhang Chocolates, Medical Marijuana Incorporated "MJNA", and the U.S. Military's ration kits and companies with unique custom formulations in smaller brands.

Mastix Medica is one of very few companies in the world that has the ability to make tableted chewing gum products. It has also developed a proprietary direct compression tableting process that is excellent for delivering supplements and active ingredients. A patent application has been filed for this unique gum making process.

Mastix Medica has formulated a chewing gum product with industrial hemp oil which is rich in cannabidiol (CBD), and is also able to make a lozenge or a chewable tablet with hemp oil. Mastix Medica is the only chewing gum manufacturer that can incorporate an ingredient like hemp oil into a piece of chewing gum using its proprietary, patent pending manufacturing process that is very specialized to accommodate a unique active like hemp oil.

Mastix Medica only uses industrial hemp oil that is rich in cannabidiol (CBD) and non-psychoactive (very low THC). CBD has seen increased awareness recently due to its clinically proven ability to treat disorders such as arthritis and migraines while showing improved general health and wellness. (This statement has not been evaluated by the Food and Drug Administration).

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GelStat Corporation is a publicly traded company trading under the symbol ("GSAC") that is engaged in research, development, marketing and branding of innovative over-the-counter (OTC) consumer healthcare products addressing very large markets. The Company's initial products include GelStat Migraine, GelStat Sleep, Chews 2 Lose and All Natural Speed. The Company also has a suite of additional healthcare products in various stages of development that address large consumer markets.

Decision Resources, one of the world's leading research and advisory firms for pharmaceutical and healthcare issues, expects the market for migraine therapies to grow from $3.3 billion in 2011 to $5.8 billion in 2021 in the United States, France, Germany, Italy, Spain, the United Kingdom and Japan.

The total over-the-counter market for sleep aids alone reached $604 million in 2008, an increase of 9 percent over 2007, according to Packaged Facts, a division of Rockville, Md.-based Market Research Group.

According to Marketdata Enterprises, Inc., a leading independent market research publisher of "off-the-shelf" studies about service industries since 1979, an estimated 75 million dieters spent $2.7 billion in 2010 on diet pills and meal replacements.

According an article published by Companies and, the US energy drinks market is estimated to have increased by 60% over the past four years, hitting an estimated value of $12.5 billion in 2012. The industry is expected to continue this growth path, by rising to a valuation of $21.5 billion by 2017.

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Safe Harbor Statement

This press release and the shareholder letter contains forward-looking statements including pursuing strategic relationships, building and leveraging a direct-to consumer platform to launch new products, acquiring or licensing the rights to products with proven science, growing organically and achieving each of the goals mentioned above. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the failure of our products to be accepted, failure to obtain partners to market and distribute our products, unanticipated delays in launching website or failure of the website to generate revenues, our inability to find a target to acquire on mutually acceptable terms, and the inability to get our reports prepared and filed timely as a result of unforeseen audit issues.

Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.


Gerald Kieft
GelStat Corporation

Source: GelStat Corporation