Toronto, September 18, 2018 (CNW) – PRESS RELEASE – FSD Pharma Inc., which, through its wholly-owned subsidiary FV Pharma Inc., is a licensed producer pursuant to the Access to Cannabis for Medical Purposes Regulations, has announced that it has signed a definitive collaboration and profit sharing agreement with Canntab Therapeutics Limited in the rapidly growing cannabis pill market, effective Sept. 17, 2018. Under the terms of the agreement, FSD Pharma will assist Canntab to obtain a license to process and sell cannabis products pursuant to the Cannabis Act and will provide Canntab with space at its facility, which is located just one-hour east of Toronto in Cobourg, Ontario.
FSD Pharma will provide Canntab with up to 10,000 square feet of space at the FSD facility. Canntab will build and install, at its expense, its own manufacturing facility within the larger FSD facility that will operate in accordance with Good Manufacturing Practices, at which it will produce a suite of novel cannabis oral dose delivery platforms, including gel capsules and tablets, and other types of cannabis-based products, including sleep aids and pain relievers.
FSD Pharma and Canntab see opportunity in offering pharmaceutical-quality, cannabis-based tablets, as many doctors are averse to prescribing smoked cannabis as a solution to patients’ health concerns. The Canntab premises are intended to be used to supply Canadian and international markets such as Australia and Germany, which legally allow cannabis. FSD Pharma will work with Canntab to prepare the necessary items to submit an application from Canntab to Health Canada to obtain the License, which will be attached to the Canntab Premises. In particular, FSD Pharma will assist with the following aspects of the application:
a) drafting, or coordinating the drafting of, all application materials;
b) sourcing all necessary third-party consultants required to prepare the application; and
c) communicating with Health Canada throughout the application process.
In consideration of FSD Pharma’s services, Canntab will grant FSD Pharma certain royalty and profit-sharing rights in connection with the sale of the Canntab Products. Canntab will provide FSD Pharma with 50 percent of the profits that Canntab receives on any retail sales of Canntab Products through channels that are established by FSD Pharma and FSD Pharma will be entitled to retain 50 percent of the profits on FSD Pharma’s sales of the Canntab Products. In addition, Canntab will pay FSD Pharma a royalty of 3.5 percent of Canntab’s sale price for all Canntab Products that are manufactured and sold from the Canntab Premises. Canntab may also purchase the oil that it requires for the Canntab Products from FSD Pharma.
Jeffrey Renwick, chief executive officer of Canntab, stated, “We are excited to begin work on our manufacturing space at the Cobourg facility and to collaborate with FSD Pharma to bring our expertise in the production of our suite of novel cannabis oral dose delivery platforms, including gel capsules and tablets to the cannabis medicinal market. Now that our definitive agreement is signed with FSD Pharma, we intend to work with the Company to move our application through the Health Canada process as swiftly and smoothly as possible”.
Thomas Fairfull, chief executive officer of FSD Pharma, added, “The company is pleased to welcome Canntab to our premises and to begin the process of offering through our agreement with Canntab a cannabis delivery platform consisting of pills and tablets that is the accepted norm among patients and doctors. We have complete faith in Jeff and his experienced team to deliver the best that the medicinal market demands. I look forward to an ongoing partnership with everyone involved as we continue to expand our offerings at our Cobourg facility.”
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