InvestmentPitch Media Video Discusses Canntab Therapeutics LOI with FSD Pharma to Obtain License to Process and Sell Cannabis Based Products - Video News Alert on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - July 11, 2018) - Canntab Therapeutics (CSE: PILL), a cannabis oral dosage formulation company, engaged in the research and development of advanced pharmaceutical grade formulations of cannabinoids, has entered into a non-binding letter of intent with FSD Pharma Inc. (CSE:HUGE). FSD Pharma, through its wholly-owned subsidiary FV Pharma, is a licensed producer under the Access to Cannabis for Medical Purposes Regulations.
FSD Pharma will assist Canntab obtain a license to process and sell cannabis products under the Cannabis Act and will provide Canntab with 10,000 square feet within its 620,000 square foot facility, the former Kraft plant, which is located one hour east of Toronto in Cobourg, Ontario.
Canntab will build and install, at its own expense, its own manufacturing facility to produce a suite of novel cannabis oral dose delivery platforms, including gel capsules and tablets, and other types of cannabis-based products, such as sleep aids and pain relievers. FSD Pharma and Canntab see tremendous opportunity 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 will supply Canadian and International markets such as Australia and Germany, which legally allow cannabis.
Jeff Renwick, CEO of CannTab, stated: "We are thrilled to announce our partnership with FSD Pharma, which not only provides us with space at their world class facility in Cobourg, but also gives us access to their deep knowledge base, which we believe will help us move our application through the Health Canada process as quickly and smoothly as possible. With this partnership in place, we believe that Canntab is well-positioned to capitalize on the impending legalization of cannabis on October 17, 2018."
Canntab will pay FSD Pharma 50% of the profits on all direct sales of Canntab Products by FSD Pharma, as well as 50% of the profits on Canntab's retail sales through channels established by FSD Pharma. In addition, Canntab will pay FSD Pharma a royalty of 3.5% of Canntab's sale price for all Canntab products manufactured and sold from the Canntab premises. Canntab may also purchase the oil required for its products from FSD Pharma.
Thomas Fairfull, CEO of FSD Pharma, added, "Pills and tablets are the norm for most patients' method of consuming medicine and nutraceuticals. It's still difficult for doctors and other alternative health practitioners to prescribe smoking as a form of medicine. Jeff and his team have been in the pharma manufacturing industry for decades and have been doing research in cannabis for years collecting a wealth of experience and knowledge that even most big pharma companies don't have. This agreement with Canntab adds to the growing FSD Pharma suite of cannabis based products to be manufactured at our large facility. This could be HUGE."
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