FSD’s new sales license allows Canntab to produce samples of CBD-containing capsules, which will enable the company to begin production and sales from its manufacturing space in FSD’s Cobourg facility
Canntab Therapeutics Limited () (OTCMKTS:CTABF) edged closer to sales and revenue generation this week after its partner Inc () (OTCMKTS:FSDDF) received its sales license from Health Canada.
Canntab and entered into a collaboration and profit sharing agreement in September 2018. Under the terms, FSD Pharma will assist Canntab to obtain a license to process and sell cannabis products and will provide Canntab with space at its facility in Cobourg, Ontario.
WATCH: Canntab Therapeutic agrees to deal with FSD Pharma and World Class Extractions
FSD’s new sales license allows Canntab to produce samples of CBD-containing capsules, which will enable the company to begin production and sales from its manufacturing space in FSD’s Cobourg facility.
Once the license is combined with an export permit, Canntab will be able to sell its products in foreign markets.
"We are thrilled that FSD has received its sales licence from Health Canada and want to congratulate the entire FSD team on this significant milestone,” said Jeffrey Renwick, CEO of Canntab.
The Toronto-based company will begin white labeling for Canadian licensed producers, including FSD, once it receives Health Canada approval for its capsules, it said in a statement.
Once FSD is able to export, Canntab will be able to sell its proposed products in foreign jurisdictions, including Australia and Mexico where existing agreements are already in place.
“We look forward to continuing to work closely with the team at FSD during this exciting new phase of our businesses,” said CEO Renwick.
READ: Canntab Therapeutics fills a gap with its pioneering cannabis oral dosage products
The company has 13 patents pending in the US and Canada. Canntab's oral delivery system treats different ailments by delivering a uniform dosage of medicinal cannabis extract. This includes extended-release, flash melt, immediate release, modified release and bi-layered tablets.
Canntab shares were trading around C$0.77 on Tuesday in Canada, and nearly 1% higher to US$0.60 on the OTC markets.
Contact Angela at [email protected]
Follow her on @AHarmantas