WeedMD Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE)
(“WeedMD”) and
Phivida Holdings Inc. (CSE: VIDA)
(OTC.PHVAF) ("Phivida") are pleased to announce the signing of a
final definitive joint venture agreement (“Agreement”) to develop
and operate Cannabis Beverages Inc. (“CanBev”) at WeedMD’s
state-of-the-art greenhouse facility in Strathroy, Ontario.
As an early mover in the cannabis-infused
beverage market, CanBev is positioning itself to capture
significant market share in Canada’s highly-anticipated consumable
cannabis market. According to Consumer Health Products Canada, the
CBD-infused products market is worth $5.6 billion in Canada alone.
The joint venture will be focused on product development,
manufacturing, marketing and distribution of cannabis-infused
beverages for Canada and export to licensed international markets.
Click here for an introductory video on the CanBev joint venture
project.
Under the terms of the Agreement, both companies
will be strategic partners in the development of CanBev. WeedMD
will act as the exclusive supplier of cannabinoid extracts for use
in innovative cannabis infused consumer products to be made at the
CanBev facility. In doing so, WeedMD will designate manufacturing
space at its 610,000 sq. ft. state-of-the-art licensed cultivation
and processing facility located in Strathroy, Ontario.
In addition to supplying CanBev with premium,
high-quality cannabis, WeedMD will assist CanBev with obtaining all
necessary federal licenses and permits and has also agreed to
provide all current and future genetics.
“We are thrilled to begin the development of
this joint venture. With the launch of CanBev, WeedMD will be one
of the first to introduce an innovative and popular consumption
method with our cannabis-infused beverages – adding a new brand
category for the medical and adult-use markets,” said Keith Merker,
CEO of WeedMD. “WeedMD is proud to collaborate with Phivida on this
joint venture and to work alongside a world-class management team
that includes former senior executives from beverage and other
industry leaders who worked for Red Bull®, Seagram’s®, Proctor and
Gamble®, and McKesson. Leveraging proven success, we will be
well-positioned to execute on our growth plans for infused
beverages.”
Phivida will be sublicensing its current and
future trademarks, intellectual property, branding and packaging to
CanBev. Phivida has also agreed to lead new product innovation,
research and development, formulation, packaging and branding for
CanBev.
“The Phivida team is excited to contribute our
management, expertise and product knowledge to the CanBev joint
venture,” said Jim Bailey, CEO and President of Phivida. “WeedMD is
an ideal partner for Phivida and we are thrilled to bring our
cannabinoid-infused beverages and brands back home to Canada.
WeedMD provides CanBev with solid infrastructure, strong
management, world-class genetics and proven success in the Canadian
healthcare market. We are very proud to partner with best in class
among the Canadian licensed producers.”
Transaction Summary
The joint venture will be structured as a
jointly-owned company with a dedicated board of directors and
operational management team. Phivida and WeedMD will retain 50%
each of the Class A shares. The shares issued will correspond to
CanBev’s appointment of nominees to a Board of Directors— to be
made up of five individuals, two nominated by Phivida, two by
WeedMD, and one independent director. Phivida and WeedMD have
agreed to fund capital requirements of CanBev equally, and on a
pro-rata basis, from their respective treasuries, beginning with
initial shareholder advances of $375,000 each.
Cannabis Beverages Inc.Cannabis
Beverages Inc. (or “CanBev”) plans to manufacture, market, and
distribute cannabinoid infused products for use initially into the
medical market as well as for the recreational Canadian markets,
and then for use internationally, where such products are
permitted. CanBev cannabis-infused products are expected to be
available in retail locations and online throughout Canada in late
2019, or upon the implementation of government legislation on
consumables. CanBev has plans to build and operate a federally
approved cannabis-infused beverage production facility to be
located on the WeedMD 610,000 sq. ft. expansion property located in
Strathroy, Ontario. 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.
Phivida Holdings Inc.
Phivida ["fiii-vee-daa"] infuses CBD derived
from Hemp into functional foods, beverages and health products.
Phivida uses encapsulated cannabinoids from hemp oil into water
soluble form, enhancing bioavailability, and timed released within
the body. Phivida's CBD beverages, foods and supplements contain a
proprietary blend of phytonutraceuticals studied to target a range
of health conditions, from chronic pain, treatment of stress and
anxiety to reducing inflammation in the body. The World Anti-Doping
Association's recently lifted a ban of CBD from hemp
oil and the World Health Organization's recent
statement supports clinical benefits of CBD for athletes and
active families. Celebrating; Health and Wellness, In Harmony™,
Phivida's vision is to lead the market as the benchmark quality
standard in premium CBD infused foods, beverages and clinical
products, with a dedication to research, education and investing
back into the communities we serve. Phivida is a publicly traded
company listed on the Canadian Securities Exchange under the ticker
symbol "VIDA" and the OTCQX Market as “PHVAF”. Join our social
media network @Phivida.
Phivida Holdings Inc. Jim Bailey, Chief
Executive Officer Tel: +1 (844) 744-6646 (ext. #2)
Email: IR@phivida.comTo learn more, visit us at
www.phivida.com
Follow Phivida Holdings Inc.
athttps://www.facebook.com/phivida/https://www.linkedin.com/company/phivida/https://twitter.com/Phividahttps://www.instagram.com/phivida/?hl=en
About WeedMD Inc.:WeedMD Inc.
is the publicly-traded parent company of WeedMD Rx Inc., a
federally-licensed producer and distributor of medical cannabis and
oils under the Access to Cannabis for Medical Purposes Regulations
(ACMPR). The Company operates a 26,000 sq. ft. indoor facility in
Aylmer, Ontario, and a second cultivation site at its greenhouse
facility located in Strathroy, Ontario, representing 610,000 sq.
ft. or 14 acres under glass. WeedMD has entered into supply
agreements in addition to strategic relationships with established
cannabis brands. The Company is focused on providing medical
cannabis to the seniors’ markets in Canada through its proprietary
seniors care program. It is dedicated to educating healthcare
practitioners and furthering public understanding of the role that
medical cannabis plays – including as it pertains to regulatory
requirements, indications and potential side effects.
For more information, access our investor
presentation here and corporate video here.
Follow WeedMD
On:https://www.facebook.com/weedmd/https://www.linkedin.com/company/weedmdhttps://twitter.com/WeedMDhttps://www.instagram.com/weedmd/
For further information, please
contact:
WeedMD Inc.Keith Merker, Chief Executive
Officer Tel: 519-765-2440 Ext. 222 Email: investor@weedmd.com
To learn more, visit us at www.weedmd.com
For Media Inquiries:Marianella delaBarrera
Margin Communications & Public Relations Tel: 416-897-6644
Email: marianella@marginpr.com
Cautionary Statement on Forward-looking
Information
This news release contains forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Phivida and WeedMD to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. These forward-looking statements include, but are not
limited to, statements relating to our expectations with respect
to: the timing and outcome of the CanBev joint venture; the
anticipated benefits of the CanBev joint venture to the parties;
impact of the CanBev joint venture and anticipated growth for the
parties; and the anticipated timing of availability of applicable
legislation in Canada. Often, but not always, forward-looking
statements can be identified by the use of words such as “plans”,
“expects” or “does not expect”, “is expected”, “estimates”,
“intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved. In respect of the
forward-looking statements and information concerning the
anticipated benefits of the CanBev joint venture and the
anticipated timing of availability of applicable legislation in
Canada, Phivida and WeedMD have provided such statements and
information in reliance on certain assumptions that they believe
are reasonable at this time, including assumptions as to the
necessary regulatory approvals and other expectations and
assumptions concerning the CanBev joint venture.
Since forward-looking statements and information
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number
of factors and risks. Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on other
factors that could affect the operations or financial results of
the parties are included in reports on file with applicable
securities regulatory authorities.
The forward-looking statements contained in this
news release are made as of the date of this release and,
accordingly, are subject to change after such date. Phivida and
WeedMD do not assume any obligation to update or revise any
forward-looking statements, whether written or oral, that may be
made from time to time by us or on our behalf, except as required
by applicable law.
None of the TSX Venture Exchange or the Canadian
Securities Exchange and their Regulation Services Providers accept
responsibility for the adequacy or accuracy of this release.
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