Econnabis SAS, a subsidiary of Plena Global Holdings Inc, will supply up to 200 kilograms of GMP-compliant THC distillate
Inc () announced Thursday it had struck a THC distillate supply deal for its proposed Portugal refinery.
The agreement sees Econnabis SAS, a subsidiary of Plena Global Holdings Inc, supplying up to 200 kilograms of GMP-compliant THC distillate to Vancouver-based EXMceuticals at a time when the European cannabis market is seeing increased demand for cannabis-related products.
EXMceuticals is planning to leverage its existing Portuguese operations to position itself as a major European supplier of cannabinoid formulations.
READ: EXMceuticals secures supply and offtake agreements-in-principle for proposed Portugal refinery
“The demand will explode in the next few years as the European cannabis industry continues to develop into one of the largest cannabis markets in the world and more countries require the use of EU GMP standards,” CEO Jonathan Summers told shareholders in a statement.
“Securing valuable sources of ingredients with consistent, large-scale suppliers such as Plena Global is more important than ever for the buildout of the EXM supply chain. Plena Global’s capacity and expertise in genetics will complement EXM activities in Portugal, providing customized ingredients to clients.”
British Columbia’s Plena Global supplies medical-grade cannabis products to licensed producers and pharmaceutical companies worldwide from its operations in Colombia. The company’s focus has been on commercializing cannabinoid formulations evolving with market demand, according to EXMCeuticals.
“CBD is truly becoming a revolutionary input for the cannabis and wellness market and research points to other interesting cannabinoids Plena Global can provides to us such as CBG and CBN,” Summers added. “The tremendous amount of work that Plena Global has completed to date gives us a great deal of confidence that our collaborative approach to deliver the right inputs to costumers will be unmatched.”
Market making contract
EXMceuticals also said it has retained Independent Trading Group Inc (ITG) to provide market-making services and Luminous Capital Ltd as financial advisor. ITG will receive $6,000 per month for a three-month term, renewable on a month-to-month basis following the initial three-month period, while Luminous will receive 1 million restricted shares of EXMceuticals.
“ITG and Luminous will provide value for shareholders given the milestones achieved and anticipated, we are now looking to engage with a far wider audience and engage with financials institution in financing our facility in Portugal,” Summers said. “I am confident that this new advisory relationship will help EXM move to a different level.”
EXMceuticals is currently creating an industrial-scale and pharmaceutical grade extraction and refining unit inside the European Union near Lisbon in Portugal. It also has an existing and licensed cannabis research and development facility and pilot refinery in Portugal.
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