TORONTO and VANCOUVER - WeedMD Inc., a federally licensed producer and distributor of medical cannabis and Phivida Holdings Inc., a premium brand of cannabidiol ("CBD") infused functional beverages and clinical health products, are pleased to announce the signing of a letter of intent ("LOI") to form a joint venture focused on cannabis-infused beverages. The new joint venture company, Cannabis Beverages Inc. ("CanBev"), plans to develop a production facility at WeedMD's state-of-the-art greenhouse in Strathroy, Ontario.
Also read, CBD-Infused Foods Becoming a New Health Trend.
CanBev will operate one of the first cannabis-infused beverage production facilities in Canada. The joint venture partnership will focus on manufacturing, marketing and distribution of cannabinoid-infused beverages for the medical and future adult-use cannabis markets.
WeedMD will be the exclusive cannabis supplier and distributor for CanBev cannabis-infused beverages and will designate production space at its 610,000 sq. ft. state-of-the-art facility in Strathroy for CanBev's operation. As an emerging cGMP certified food grade production plant, WeedMD's Strathroy facility will equip CanBev with extensive production infrastructure, including 25,000 sq. ft. of packaging area and cold storage, as well as adequate space to expand for future growth.
"As WeedMD builds out its production footprint, we will focus on product innovation, extending our product line and building new brands. Canadian medical consumers, especially those in seniors' care, are interested in functional beverages as they integrate cannabis into their medical treatment plans," said Michael Kraft, Chairman of WeedMD. "We are eager to work alongside Phivida's world-class management team to develop cannabinoid-infused beverages and brands for both the medical and adult-use markets."
Phivida will be responsible for product innovation, research and development, formulation and branding. Phivida will also sublicense encapsulation technologies to CanBev for enhanced bioavailability and solubility and create new consumer brands to serve target consumer segments in the pending adult-use market.
"Phivida is pleased to partner with an industry leader and build towards a leadership share of the global cannabis-infused beverage market," said John-David A. Belfontaine, President and Chairman of Phivida. "WeedMD is the ideal partner for Phivida, as they will provide CanBev with the ability to distribute into the federally legal medicinal cannabis market in Canada and apply for a license for cultivation and sales under the ACMPR. WeedMD provides CanBev with solid infrastructure, strong management, world class genetics and proven success in the Canadian health care market. Phivida provides CanBev with the opportunity to bring our premium cannabinoid-infused beverages to patients and consumers across Canada and bring federally legal cannabis-infused consumer packaged goods and brands to the Canadian market for the first time in the history of the industry."
CanBev has no plans to sell any cannabis-infused products in the U.S. or any other market unless or until it is legally permissible to do so at all government levels. The joint venture is subject to the parties finalizing definitive documentation and TSX Venture Exchange approval.
SOURCE Phivida Holdings Inc.
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