FSD will provide Canntab with up to 10,000 sq ft at its facility, which lies one hour east of Toronto in Cobourg, Ontario
Pot pill developer () saw shares surge in Toronto Tuesday as it unveiled positive test results on its oral extended release formulation.
Given this, Canntab said it will now begin manufacturing batches of these tablets for pharmacokinetic and clinical testing.
The test work was a collaboration with medical cannabis producer (CVE:EMC, OTCQX: EMMBF) and showed that the pills released cannabinoids consistently over a 12-hour period.
"Achieving this milestone marks a key step in the development of the oral extended release formulation," said John H. Stewart, the president at Emblem Medical.
"The production of a reliable, long-acting formulation is complex and often very difficult to achieve. The results of the dissolution study signal that we will proceeding to the next stages of the product's development with Canntab."
Milestone payment
Under the agreement between the pair, as part of this achievement, Emblem has made the required milestone payment to Canntab.
Also today, Canntab's plans to provide pot pills to patients and doctors in Canada was advanced further - as it struck a definitive collaboration and profit sharing agreement with .
As previously stated, the latter will help the firm to obtain a license to process and sell cannabis products and will provide it with up to 10,000 square feet at its facility, which lies one hour east of Toronto in Cobourg, Ontario.
Own manufacturing facility
Canntab will build and install, at its expense, its own manufacturing facility within the larger FSD premises.
It will produce a suite of novel oral dose delivery platforms, including gel capsules and tablets, and other types of cannabis-based products, including sleep aids and pain relievers.
It is planned that the premises will be used to supply Canadian and International markets such as Australia and Germany, which legally allow cannabis.
"Now that our definitive agreement is signed with , we intend to work with the Company to move our application through the Health Canada process as swiftly and smoothly as possible, said Jeffrey Renwick, chief executive of Canntab.
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 .
Meanwhile, FSD will be entitled to retain 50% of the profits on '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
Canntab shares shot up 20% in Toronto to stand at C$1.20.
