GelStat Corporation (GSAC)

[greenlife]

GelStat Corporation Acquires Mastix Medica, LLC for Restricted Common Stock

Gelstat Gets Entry Into Explosive Medical Marijuana and Industrial Hemp Business

PALM CITY, FL, Jul 08, 2014 (Marketwired via COMTEX) -- GelStat Corporation (PINKSHEETS: GSAC), a company engaged in the research, development, marketing, licensing and branding of innovative Over-the-Counter (OTC) consumer healthcare products, is pleased to announce it has closed the acquisition of Mastix Medica, LLC on July 7, 2014. 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."

Make sure you are first to receive timely information on GelStat Corporation when it hits the newswire. Sign up for GelStat's email news alert system today at: http://ir.stockpr.com/gelstat/request-information

ABOUT MASTIX MEDICA

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 is one of very few companies in the world that has the ability to make tableted chewing gum products at room temperature versus the traditional boiling process which can degrade the active ingredients and reduce their efficacy. It has also developed a proprietary direct compression tableting process that is excellent for delivering supplements and active ingredients making it unique to the entire industry.

Mastix Medica has formulated a chewing gum product infused with hemp oil which is rich in cannabidiol (CBD). We are also able to make a lozenge or a chewable tablet with hemp and/or marijuana extracted oil. We believe Mastix is the only chewing gum manufacturer that can incorporate an ingredient like hemp/marijuana oil into a piece of chewing gum since our proprietary manufacturing process is very specialized to accommodate a unique active ingredient like hemp oil.


-- Mastix Medica has a unique proprietary process for incorporating hemp
oil into chewing gum, lozenges and chewable tablets.
-- We manufacture the only chewing gum with hemp oil on the market; we
believe more hemp oil gum and lozenge products are coming in the near
future because hemp oil provides the medicinal benefits without the
hallucinogenic effects of marijuana.
-- Mastix Medica will only use hemp oil that has very low THC; the hemp oil
we use is rich in cannabidiol (CBD). We will, however, license our
patent pending technology to those companies wanting to infuse high-THC
marijuana oil into their gum products in states and countries wherein
the manufacturing and distribution of marijuana has been legalized.