TORONTO, Oct. 31, 2018 (GLOBE NEWSWIRE) — Canntab Therapeutics Limited (CSE: PILL, FSE: TBF1) (“Canntab” or the “Company”) today announced the signing of a non-binding Letter of Intent (the “LOI”) with Labsco Promedic SA de CV of Monterrey, Mexico (“Labsco”) for the establishment of a joint venture relationship for the sales & distribution of Canntab products in Mexico (the “Territory”) on an exclusive basis. Following the LOI, the parties will work together to establish and complete a formal joint venture relationship for an initial period of five years.
According to the LOI the following contributions to the proposed joint venture have been agreed to:
- Labsco shall be responsible for funding and obtaining any and all regulatory, licencing or other such approvals for the importation and distribution of Canntab products in Mexico;
- Labsco shall provide physical premises for the work of the joint venture;
- Labsco shall be responsible for product distribution in Mexico;
- Canntab shall license current Patents and Know-How, subject to completion of a License Agreement;
- Canntab shall produce products in bulk from its Canadian facilities; and
- Canntab shall provide products to the joint venture at an agreed price and margin.
The LOI is subject to completion of a Definitive Agreement. The Company anticipates completion of this formal agreement before the end of the year.
“Following several months of discussion including introductory due diligence, we are pleased to welcome Labsco and their team to the Canntab family. We are excited about the potential for our sustained release tablet formulations of cannabinoids in the Mexican market,” said Jeff Renwick, Canntab CEO. “Following our recently announced application to Health Canada to become a Licenced Producer under the ACMPR, and along with our production facility in collaboration with FSD Pharma, Canntab is building a significant international distribution network for its products. Labsco is the newest addition to this developing line of business for Canntab”.