FSD has received the first delivery of manufacturing equipment at its Cobourg plant in Ontario
Cannabis pill focused developer Canntab Therapeutics Limited () unveiled progress Tuesday on its profit-sharing collaboration with medical pot producer Inc ().
FSD has received its first delivery of manufacturing equipment at its Cobourg plant in Ontario from Canntab, it told investors.
FSD thrilled
"We are thrilled that Canntab is moving so quickly to set up its manufacturing facility at our company," said Zeeshan Saeed, EVP (executive vice president) and director of .
As revealed in July this year, under the letter of intent (LOI) will help Canntab to obtain a license to process and sell cannabis products under the new legislation in Canada to legalise it.
It will also provide up to 10,000 sq ft of space at its 620,000 sq ft facility in Ontario.
The manufacturing equipment delivered consists of a high output tablet press capable of pressing more than 1.5 million tablets per day, as well as blending machinery, large-scale process and drying equipment and packaging equipment.
Canntab will build and install its own manufacturing facility to produce novel cannabis oral dose delivery platforms, including gel capsules and tablets.
"With this first delivery of manufacturing equipment at the Cobourg plant, we can begin the process of setting up our manufacturing space in collaboration with ," said Jeffrey Renwick, chief executive at Canntab, on Tuesday.
"We expect manufacturing of our suite of novel cannabis oral dose delivery platforms, including gel capsules and tablets to begin in earnest."
Tremendous opportunity
FSD Pharma and Canntab see "tremendous opportunity" in offering pharmaceutical quality cannabis-based tablets, as many doctors are averse to prescribing smoked cannabis as a solution to patients' health concerns, Canntab said.
Under the plan, Canntab will hand FSD 50% of the profits that Canntab receives on any retail sales of Canntab products through channels that are established by FSD Pharma.
Meanwhile, FSD will be entitled to retain 50% of the profits on FSD Pharma's sales of the Canntab products.
Canntab will also pay FSD a royalty of 3.5% of Canntab's sale price for all Canntab products that are manufactured and sold from the Canntab premises.
