WeedMD Inc (OTCMKTS:WDDMF) has signed an agreement with Phivida Holdings Inc that will see the two companies jointly launch, develop and operate Cannabis Beverages Inc.(CanBev) The facility will be located at WeedMD’s greenhouse facility situated in Strathroy, Ontario.
Target more market territories
Being an early comer in the cannabis industry, CanBev is seeking to capitalize on this early advantage to spread its market reach. Canada’s cannabis market becoming more consumable as regulations approvals for medical and adult-use of cannabis are granted.
The unveiling of CanBev will open another avenue for cannabis-infused products to enter into the consumer health products market. Currently, estimates indicate that Canada’s consumer health products market stands at $5.6 billion. This is according to data from the Consumer Health Products Canada.
Among other things, the partnership will mainly focus on the development production, marketing as well as distribution of CBD-infused beverages in Canada. The companies have also indicated that they will produce some products targeting global licensed market.
Terms of the agreement
In the partnership, both parties both parties will play an equal role in the launch and development of CanBev. The two companies will play distinct roles in according to their areas of expertise.
WeedMD will be in charge of supplying the cannabinoid extracts to be used in the extraction of CBD-infused consumer products. These products will be made at the CanBev production facility. To create space for the new production facility, WeedMD has set aside at its 610,000 sq. ft to be used for cultivation and production of the new products.
In addition to premium cannabis to CanBev will offer advice and guidance in application for the necessary federal permits and licenses. The company will also provide the original genetics to be used in the facility.
In a statement, WeedMD CEO Keith Merker said they are very happy to be partnering with Phivida Holdings in the launch of CanBev. He added that CanBev will be one of the first companies to launch a popular and innovative consumption model. The model will be focused on cannabis beverages and other consumables.