Vancouver, British Columbia--(Newsfile Corp. - October 4, 2018) - Canntab Therapeutics (CSE: PILL) (FSE: TBF1), a Canadian cannabis oral dosage formulation company, engaged in the research and development of advanced pharmaceutical grade formulations of cannabinoids, has Signed a non-binding Letter of Intent with NewCanna S.A.S. of Bogota, Colombia,
The LOI establishes a significant bi-lateral relationship granting NewCanna the right to sell and distribute certain Canntab exclusive proprietary products, and the right to utilize Canntab's know-how and patents in the in the countries of Colombia, Chile, Paraguay and Spain.
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The two parties have a 60-day period to complete a formal agreement, which will trigger a one-time, non-refundable License Fee of US $2-million payable to Canntab by NewCanna in consideration for the exclusive license to be granted by Canntab to NewCanna. Canntab will in turn issue NewCanna warrants to purchase up to 500,000 shares of Canntab at a price of $1.80 for 24 months.
Under the formal agreement NewCanna will have an exclusive 5-year distribution agreement for Canntab's oral sustained release tablet formulations and undertakes to supply Canntab up to US$10 million of NewCanna cannabis oil for which Canntab will place a deposit of US$1 million.
NewCanna would become a key supplier of raw materials for Canntab and on a cost basis which will be very favourable in comparison to other sources worldwide. In addition to certain performance standards, the two parties will share profits on a 50/50 basis for all products sold under the agreement.
Jeff Renwick, CEO of CannTab, stated: "We welcome this key development in our business plan and the opportunity to rapidly expand into the many potential markets for Canntab products worldwide. The wide variety of NewCanna's cannabis strains will give us access to a full range of Cannabinoids and terpenoids to further our development pipeline. In conjunction with, our recently announced relationship with FSD Pharma and with our progressing work with Emblem Cannabis Corporation, I believe Canntab is poised to be the world leader in pharmaceutical grade, standardized tablet dosage of medicinal cannabis."
NewCanna, directly and through its existing partners has access to, or control over:
- Four cultivation and extraction licenses with another four licenses under application
- More than 3,000 hectares of cannabis production
- A 32,000 square foot pharmaceutical-grade extraction facility capable of processing 5,000 tonnes of raw material per day
- Colombian oil-exportation license
- Operations within the Cannabis Free Trade Zone
- Genetic registration of more than 500 strains of cannabis and wide-ranging existing distribution.
Santiago Londono, Founder and CEO of NewCanna, added: "When carefully building a global network of cultivators and distribution channels in today's fast-growing medicinal cannabis market it is imperative to identify the best possible pharma-grade manufacturing partners, this is why, after rigorously evaluating many other possible alliances, we have decided Canntab has the vision, infrastructure and knowledge that represents our best interest moving forward. Our main goal is to deliver the most responsible and precise dosage to every patient that trusts our brands, and we believe Canntab will be instrumental in achieving this objective."
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