PROTEXT PHARMA ANNOUNCES EXPANSION OF CANNABIS LICENSE AGREEMENT WITH MAJORITY SHAREHOLDER PLANDIA BIOTECHNOLOGY, INC. |
Florida, USA -- December 7, 2018 -- InvestorsHub NewsWire -- Protext Pharma, Inc. (PINKSHEETS: TXTM) ("Protext" or "the Company"), a biotech company engaged in the development of botanical medicines that are formulated with highly-bioavailable plant extracts, is pleased to announce it has executed positive amendments to the agreement with its majority stakeholder, Plandai Biotechnology, Inc. (PLPL), to clarify, modify and expand the license agreement held by the Company’s wholly owned subsidiary, Cannabis Bioscience, Inc. According to the Company, these changes enable Protext to quickly ramp up building a platform to develop cannabis products in the US which would include developing both cannabis and hemp-based extracts for nutraceutical applications and have cannabis products ready for market inside of six months through a joint venture.
Company management commented, “This updated license agreement replaces the previous agreement and, in addition to clarifying some of the language, also specifies a broader scope of applications relating to cannabis. Since 2013, when Cannabis Bioscience first began researching cannabis extracts, medical cannabis applications have progressed significantly. More than thirty U.S. states have now legalized cannabis to some extent, with many now allowing non-prescription sales. In addition, the medical benefits of CBD have become more broadly accepted which has created and entirely new industry. This amended license addresses these industry changes and opens up new opportunities for bringing product to market in the near term.”
Under the terms of the amended license agreement, new language has been added granting the Company an exclusive license to “develop and commercialize cannabis and hemp applications using proprietary Plandaí processing and extraction technologies.” The license allows for “medicinal, pharmaceutical, nutraceutical and recreational applications and processes, such that Cannabis Biosciences shall have the exclusive use of such intellectual property necessary to develop, manufacture, promote, distribute, and sell proprietary cannabinoid complexes and cannabis products on an exclusive, worldwide basis.” The license includes the entire cannabis drug chemistry containing a complex of cannabinoids, cannabinoid acids Δ9-tetrahydrocannabinolic acids (THCA and THCB); cannabidiolic acid (CBDA) and cannabichromic acid (CBCA) and other high purity cannabis cannabinoid complexes.
Plandai has also agreed to make available one of its proprietary kettles for processing live plant material and is anticipated to be shipped to the US in January. This will eliminate several months off the product development timeline and save the Company approximately $50,000 from having to build one itself initially. Additionally, this would allow the Company to quickly ramp up building a platform to develop cannabis products in the U.S. which would include developing both a cannabis and hemp-derived extracts for nutraceutical applications and have cannabis products ready for market inside of six months. Obviously, the Company would need to partner with an established cannabis operator with existing licenses for growing and processing cannabis. As such, the Company is in discussions to collaborate and form a joint venture whereby Protext would contribute the license, technology and know-how, with a partner company contributing live cannabis plant and hemp for extraction together with the necessary capital and processing license to enable the venture to legally produce and test the extract. After producing the cannabis extract, the joint venture will test for non-psychoactivity and profile the extract to identify the cannabinoids, terpenes, polyphenols. Plandai’s catechin extract derived from green tea has been shown in human clinical trials to yield greater bioavailability over generic extracts.
The Company commented, “The proposed joint venture is expected to allow the Company to develop, test and bring product to market in the United States in parallel with the Company’s ongoing efforts in South Africa as SAHPRA is still completing the licensing process. Over the last month, the licensing process has been slowed down as SAHPRA and the Department of Health were forced to vacate their offices in the Civitas building in Pretoria as reported in the local media. Our understanding is that business is still progressing within that department while they seek interim office space. As of the end of last year, South Africa became one of a few select countries where cannabis for medical purposes is legal on a federal level through government issued licenses. The anticipated license will permit the legal cultivation, extraction, testing and processing of the Company’s cannabis extract in South Africa and provide a path for distributing cannabis based medicine throughout South Africa and SADIC countries. Assuming our U.S. testing is successful, the proposed joint venture will seek to market a hemp-derived product wherever legal while also exploring opportunities for the Company’s cannabis product on a state-by-state and nation-by-nation basis.”
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About Protext Pharma, Inc.
Protext Pharma operates two wholly owned subsidiaries; Plandai Biotechnology South Africa (Pty) Ltd. and Cannabis Biosciences, Inc. The Company is engaged in the research, clinical testing and commercialization of highly bioavailable botanical products—all-natural ingredients formulated for pharmaceutical applications and produced under pharma-grade conditions. Please visit http://www.protextm.co for further information.
About Plandai Biotechnology SA
Through its wholly owned subsidiary Plandai Biotechnology SA, the Company has the exclusive worldwide license to develop Phytofare® catechin complex products pharmaceutical applications. Phytofare®, a highly bioavailable and clinically proven antioxidant complex produced from live green tea leaves can deliver a therapeutic level of catechins, which function as powerful antioxidants, to the system where they remain active for over 24 hours.
About Cannabis Biosciencess
The Company is actively pursuing government licensing that will allow it to use its proprietary processing and extraction technology to commence investigations and produce a full-profile cannabis extract, one that contains both CBD and the precursor acid form of THC (THC-A and THC-B) found in live cannabis plant. The Company's investigations will be designed to show that the Cannabis Biosciences extraction process, which will use live leaf and low temperatures to extract the phyto-chemicals, should leave the acid forms of THC intact, resulting in a non-psychoactive extract with full medicinal potential and having the heightened bioavailability of other Phytofare® extracts.
Safe Harbor Statement
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.