The letter of intent (LOI) will grant NewCanna the right to sell and distribute certain of Canntab's proprietary products
Pot-pill developer Canntab Therapeutics Limited () has announced a new tie-up with Colombian group NewCanna SAS, which will allow it to sell the former's products in Colombia, Chile, Paraguay and Spain.
The letter of intent (LOI) will grant NewCanna the right to sell and distribute certain of Canntab's exclusive proprietary products, and the right to use its knowledge and patents.
"We welcome this key development in our business plan and the opportunity to rapidly expand into the many potential markets for Canntab products worldwide," said Jeff Renwick, Canntab's chief executive.
Wide variety
"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 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."
The deal provides for a five- year distribution agreement for Canntab's oral sustained release tablet formulations in the countries above.
It also allows for the supply of up to US$10 million of NewCanna cannabis oil to Canntab for which Canntab will place a deposit of US$1mln.
The parties have 60 days to seal the deal, after which a non-refundable license fee of $2 million will be payable to Canntab by NewCanna in consideration for the exclusive license to be granted by Canntab to NewCanna.
Oil exportation licence
NewCanna holds an oil-exportation licence and has access to, or control over, four cultivation and extraction licenses. It also has four additional licenses under application and over 3,000 hectares of cannabis production.
"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," said Santiago Londono, founder and chief executive of New Canna.
"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."
Shares in Toronto added over 9% to $1.89.
