Boulder CBD firm changes name after Canadian investment

BOULDER — BoomRX, a Boulder-based CBD product maker, recently changed its name to MandaraRX after receiving an investment from Canadian cannabis firm Mandara Pharma.

The company, launched last year by a group of pharmaceutical industry veterans, plans

a June release of a CBD product line that includes transdermal patches, thin-film oral strips, rapid-dissolve tablets and a transdermal spray.

“There’s a lot of confusion in the market about how much CBD you should take and how much is actually getting into your body,” MandaraRX chief business development officer David Hurley said. “Our job is to focus on using technology from the pharmaceutical industry [to provide improved delivery and provide more uniform dosages] of CBD.”

Mandara Pharma CEO Jeremy Desai worked with members of BoomRX’s leadership group in the past and decided to make “a significant investment in us to provide us with the funds to be able to fully develop [a product line and sales network] over the next two years,” Hurley said.

Terms of the investment were not disclosed, but Hurley said Mandara Pharma owns an equity stake in MandaraRX.

A filing with the Colorado Secretary of State shows the company name MandaraRX Inc. was registered earlier this month.

“The combination of us both carrying [the] Mandara [name] creates a stronger brand for both companies,” Hurley said. “If we are able to leverage each other properly, we will be able to create additional value for both companies.”

Mandara’s team in Canada “is bringing a very significant scientific and research and development piece of the equation to the table,” Hurley said. The Colorado group is “bringing product development, sales and marketing” to the table.

“The combination of the two of us gives all of the aspects and capabilities you would find in a big pharmaceutical company,” he said.

Part of MandaraRX’s sale strategy involves building a network of wellness coaches to serve as ambassadors for the company’s products and drive customers to the website. The company does not currently have plans to sell products in retail stores.

Hurley said the wellness coach system is a single-tiered sales approach, not a multi-level marketing play. MandaraRx plans to have a team of about 1,000 wellness coaches who operate as independent contractors and are led by a group of 10 regional vice presidents.

“We are thrilled to develop a strategic partnership with BoomRx,” Desai said in a prepared statement. “Its focus on innovation, world-class service and its network of certified wellness coaches are a perfect fit for us as we continue to evolve and plan for global expansion.”

Despite the investment and partnership, MandaraRX has no plans to relocate its headquarters to Canada.

“We’re dedicated to Boulder, Colorado,” Hurley said. “This is our hub and that will not change. This is a great market — obviously; Colorado has been at the forefront of not only marijuana but also CBD.”