Avicanna Inc. AVCN (OTCQX: AVCNF) confirmed Wednesday that it has teamed up with Heritage Cannabis Holdings Corp. (OTCQX: HERTF) to commercialize various Avicanna’s CBD products under Heritage’s medical cannabis brand.
The two companies signed an exclusive intellectual property licensing and royalty agreement, under which they will offer Avicanna’s products under Heritage’s brand to registered medical marijuana patients in Canada.
These products contain Avicanna’s proprietary cannabinoid topical formulations developed by the company’s team of scientists and backed by pre-clinical studies, with two of the SKUs having undergone tests with human subjects.
The branded products are scheduled to roll out by the fourth quarter via Heritage’s medical sales channels in Canada.
The agreement has an original three-year team providing Heritage with exclusive license to use specific proprietary product formulations and sell them under its medical Opticann branded products across non-competing medical channels in Canada.
To keep the exclusive license, Heritage must meet specific minimum sales requirements each year for every product. It also must compensate Avicanna for each product produced and pay for a royalty on each product sold to medical marijuana consumers.
“We are excited to add Avicanna’s innovative topical products to our portfolio of highly effective medical CBD products,” Umar Syed, president of Heritage’s medical division said. “They are a great strategic fit. The Licensing Agreement offers Heritage speed-to-market with highly effective topicals and we see this as the beginning of a highly successful commercial partnership.”
Aras Azadian, CEO of Avicanna added they are thrilled to partner with Heritage to bring its proprietary topical formulation to more medical cannabis consumers across Canada. “We believe that the alignment of both companies to offer the highest standards for cannabinoid-based medicine and education will yield fruitful and long-term commercial success.”
Avicanna’s shares closed the Tuesday market session at 70 cents per share. No new info available at the time of this writing on Wednesday at mid-day.
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