Koios to Complete Development of CBD-Enhanced Functional Beverage Line: Test Batch Production to Begin on Friday, July 19, 2019

Following the Company’s September 4, 2018 announcement of plans to release a functional beverage infused with CBD, Koios has resumed development with test batch production set to begin tomorrow. The CBD cannabinoid will be added to Koios’ “Fit Soda^TM” line of functional beverages, as a method of enhancing the beverage’s effects. The Company temporarily suspended its development of a CBD-enhanced functional beverage in Q4 of 2018, citing a management decision to focus on existing product lines and retailer relationships, as well as an uncertain landscape with respect to CBD’s legality and its public perception. Koios will continue its working relationship with Colorado-based Keef Brands, who will supply crystalized water-soluble CBD for the proposed beverage.

VANCOUVER, July 18, 2019 /CNW/ – Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that it has made several key developments with respect to its proposed line of functional beverages containing broad-spectrum hemp extract cannabidiol (“CBD”). In a press release dated September 4, 2018, the Company announced its plans to release a functional beverage, which would be infused with CBD to enhance the beverage’s effects. Koios will leverage its existing relationship with Colorado-based Keef Brands in the development of this product, with Keef Brands to supply crystalized, water-soluble CBD which will be added to Koios’ existing Fit Soda^TM line of functional beverages. Starting tomorrow, the Company and Keef Brands will produce several test batches of the proposed CBD beverage, with user trials to begin shortly afterward.

CBD is a cannabinoid produced in the cannabis plant, and it is regularly used to treat inflammation, pain, anxiety and epileptic seizures. CBD differs from the tetrahydrocannabinol (“THC”) cannabinoid, in that it is not psychoactive and it does not create the same sensations commonly desired by users of cannabis as a recreational drug. The addition of CBD to Koios’ proprietary stack of nutrients, amino acids, and electrolytes in its Fit Soda^TM line of beverages is expected to improve the product’s effects. Pending completion of further testing, the Company also plans to integrate CBD into its eponymous KOIOS beverage lineup at a later date. When the proposed beverage is released, Fit Soda^TM will be available both with and without CBD.

Koios had elected to defer the finalization of the proposed CBD beverage from its original target of October 2018 based on a decision to place the Company’s full focus on its existing KOIOS and Fit Soda^TM beverage lineups. With overwhelming success of these two product lines being distributed through some of the world’s largest retailers, the Company’s management deemed it to be in Koios’ best interests to capitalize on this existing demand which generates the most volume, profit and opportunity. Moreover, the overall perception of CBD from legal and scientific perspectives had been unclear for some time, creating a suboptimal landscape for products containing CBD. As a result, Koios has taken a passive approach to the introduction of CBD to its beverages, both in anticipation of the overall CBD landscape improving, as well as for taking the time to observe any “growing pains” experienced by other manufacturers who have sought to incorporate CBD into their product offerings, from which Koios has gleaned insight for solidifying its CBD product strategy.

On Friday, July 19, 2019, Koios will start production of several test batches of its Fit Soda^TM product with crystallized CBD supplied by Keef Brands. Upon completion of this production, the Company will be distributing the products from the test batch to select existing clients for trial purposes. Additionally, Koios has consumer trials planned with individuals in its local community. Feedback derived from these trials will be utilized to further develop the proposed CBD beverage and prepare it for commercial production and distribution under the Fit Soda^TM banner. The water-soluble CBD crystals supplied through Keef Brands have shown consistent potency and efficacy results in Keef’s internal evaluation efforts of numerous water-soluble CBD solutions over the past year.

Large-scale distribution of CBD-enhanced Fit Soda^TM will be contemplated by Koios based on feedback that the Company receives from the test batches being produced beginning tomorrow. Developments with respect to this large-scale distribution, including interest received from retail vendors, will be announced in a future press release.

Keef Brands Chief Operating Officer Travis Tharp commented, “We are very pleased to be growing our relationship with Koios in the development of a CBD-enhanced functional beverage product. As cannabis products continue to have a greater scope of use in a variety of industries, we are thrilled to have first-hand exposure to a novel use of this type of ingredient in beverages. These are very exciting times for both Keef Brands and Koios, and we are looking forward to the outcomes of our test batches.”

Koios Chief Executive Officer Chris Miller added, “I believe we made the right choice with respect to waiting until now to finalize our development of a CBD-enhanced functional beverage. Between an ambiguous legal landscape for CBD, as well as an unbelievable amount of pseudoscience and false claims about this cannabinoid, last year simply was not the right time for us to finalize such a product or bring it to market. By holding off, we have been able to put our full focus on our existing products and relationships with large-scale retailers. Additionally, it gave us the opportunity to observe others’ successes and failures in developing or releasing CBD products, from which we are learning, for when we ultimately release our beverages with CBD. We are thankful for being able to continue working with Keef Brands as such a highly-respected firm in the beverages space, and we are eagerly anticipating positive results from the test batch trials.”

About Koios Beverage Corp.

The Company is an emerging functional beverage company which has an available distribution network of more than 4,300 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable retailers in the United States, including GNC, Walmart Inc., and Wishing-U-Well. Together these retailers represent over 50,000 brick and mortar locations across the United States from sports nutrition stores to large natural grocery chains. Through its partnership with Wishing-U-Well, Koios also enjoys a significant presence online, including being an Amazon choice product.

Koios is also the sole owner of Cannavated Beverage Corp., a subsidiary that develops beverage products and formulas for the growing CBD market. Koios uses a proprietary blend of nootropics and natural, organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products have been shown to enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain.

Koios produces one of the only drinks in the world infused with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for more significant brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.koiosbeveragecorp.com.

Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements in this news release include statements regarding: statements with respect to the growth and size of the functional beverage and CBD infused beverage markets; the statement that CBD infused beverage markets will become legal in the US and Canada; statements with respect to our relationship with Keef Brands to produce a CBD infused line of Fit Soda^TM; statements with respect to the distribution from the test batch to select existing clients for trial purposes and consumer trials planned with individuals in the local community; and statements regarding the business of the Company. The forward-looking statements reflect management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking statements. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the functional and CBD infused beverage markets; (iii) consumer acceptance and adoption of functional beverages and CBD infused beverages as compared to other beverages; and (iv) changes which may affect the legalization of markets in the US and Canada; and (v) other factors beyond the control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Neither Koios nor Keef Brands have conducted any scientific studies on the effects of Koios’ products or the water-soluble CBD which have been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking Koios’ products will vary from person to person. No claims or guarantees can be made as to the effects of Koios’ products on an individual’s health and wellbeing.

SOURCE Koios Beverage Corp.

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