Sproutly Signs LOI With Largest Caribbean Medical Cannabis Producer To Sell Infused Beverages And Oil

CANADA: Sproutly Canada has entered into a letter of intent with Global Canna Labs Limited, the Caribbean’s largest medical cannabis producer, to establish a joint venture for the purpose of developing, producing, distributing, marketing and selling cannabis infused beverages, edibles and topical products derived from Sproutly’s fully licensed, APP Technology.

“Partnering with Global Canna Labs on this joint venture allows Sproutly to expand its business outside of Canada with a leading, low cost cannabis cultivator in Jamaica that has proven distribution in across the Caribbean and soon to be European Union,” said Keith Dolo, Chief Executive Officer and Director of Sproutly. “This partnership will enable Sproutly to diversify its product portfolio and accelerate its global distribution network from a low-cost regulated jurisdiction.”

Sproutly CanadaPaul Glavine, Chief Executive Officer of Global Canna Labs said, “We are eager to roll out this partnership with Sproutly on their APP technology. We have explored a number of options regarding extraction and cannabis technology solutions for beverage and derivative products – APP Technology is in our view the superior choice for beverage formulations.  With our current supply and expansion plans to over 1 million square feet of cultivation, we see this partnership with Sproutly as a step towards utilization of our large-scale production towards a finished-product strategy.”

Proposed Terms of Joint Venture

The joint venture is expected to be structured as a newly formed, jointly owned company with its own board of directors (the “JV”). Sproutly will have a 50% interest and Global Canna Labs will own the remaining ownership interest.  Global Canna Labs will be responsible for cannabis biomass production and procurement and day-to-day operations of the JV.

Global Canna Labs is also responsible for all costs relating to producing final products for sale, including any equipment needed to produce beverages, edibles or other cannabis derivatives and will leverage its existing production facility and staff for the JV.  These costs will be decided upon by the board along with the determination of the product lines to be produced.

Sproutly will be responsible for providing access to the APP Technology, supplying reagents, and beverage/product formulation capabilities (including its functional beverage formulation portfolio) for products to be formulated from Infuz20 and Bio Natural Oil.  The products are expected to be sold in Jamaica and the rest of the Caribbean with potential expansion into additional European countries that allow for the import of cannabis products from Jamaica. The list of jurisdictions and product lines will be finalized and disclosed in the definitive agreement.

The signing of the definitive agreement and establishment of the joint venture is expected to occur in January 2019.

About Global Canna Labs Limited

Global Canna Labs is the Caribbean’s largest medical cannabis producer and the first in Jamaica to be issued a Tier 3 license.  Global Canna Labs has its cultivation facility on 6.23 acres with a legal limit of 200,000 cannabis plants.  Currently it has 31,000 sqf of greenhouses with an additional 27,000 sqf of expansion planned for its greenhouse operations.

Global Canna Labs operates 220,000 sq.ft. of outdoor cultivation with plans to expand to over 1 million sq.ft. in 2019.  Global Canna Labs is strategically located in the city of Montego Bay Jamaica, which is ideal for its proximity to a global logistics hub.  Global Canna Labs is currently constructing a 6,000 sq.ft. packing and drying facility to EU-GMP and U-GACP specifications.

The company also accesses a proprietary distribution partnership via its 25% strategic investment in Zimmer and Company, the only pharmaceutical distribution licensed company focused on CBD/THC distribution in the Caribbean with an existing 61 products approved by the Jamaican Ministry of Health for import and export.  Currently, Zimmer global is in 100 retail locations in Jamaica and now Trinidad.

FSD Pharma Expands Into Jamaican Market

CANADA: FSD Pharma has announce that it intends to launch a strategic partnership into the Jamaican cannabis market as part of its plan to expand internationally. FSD has signed a Letter of Intent effective September 10, 2018 with JJAMACANN Inc. to form a joint venture operating as FSD Jamaica. FSD Jamaica expects to partner locally with Nature’s Purest Limited, a Jamaican corporation with a cultivation license and existing operations in Jamaica.

“We are excited to be working with a world-class and knowledgeable team of local experts and entrepreneurs with extensive cannabis cultivation experience. Jamaica has historically produced some of the best cannabis over the past 50 years. FSD Jamaica intends to take advantage of the ideal climate and soil conditions on the NPL property and surrounding area to produce the highest quality cannabis, hemp and cannabinoid products possible. FSD Jamaica is well-positioned to bring Jamaican branded, world class medical and recreational products to market by 2019”, said Anthony Durkacz, Director of FSD.

As part of the LOI, FSD Jamaica will establish an experimental centre for the development of cannabis and cannabinoid (CBD) genetics suitable to cultivate in Jamaica with the intent to create a genetics and seed bank of innovative cannabis and hemp products for the Jamaican market and the Canadian market where permitted.

“NPL was the second company to be granted a cultivation license in Jamaica. It is located in the beautiful mountains of Ulster Springs Trelawny and the property is fed by crystal clear spring water surrounded by many agricultural crops and experienced workers. The combined genetics library of FSD Jamaica and NPL will allow for the breeding of high THC & CBD plants that will be cultivated using medical grade extraction processes. This strategic partnership compliments FSD’s business model of producing the highest quality medical grade product at scale”, continued Mr. Durkacz.

Tilray Signs Letter Of Intent With Pharmasave

CANADA:  Tilray Canada announced that it has entered into a Letter of Intent (LOI) to become a preferred medical cannabis supplier to Pharmasave, the premier independent pharmacy banner in Canada.

Subject to changes to Canadian regulations that would allow such distribution, Tilray will supply and distribute Good Manufacturing Practices (GMP) certified Tilray-branded medical cannabis products through Pharmasave pharmacists. Tilray is a global pioneer in medical cannabis research, cultivation, processing and distribution, and was the first medical cannabis company with a North American production facility to obtain GMP certification in accordance with the European Medicines Agency’s (EMA) standards. Tilray currently supplies tens of thousands of patients with high-quality, GMP-certified products in ten countries spanning five continents.

Pharmasave is a member-governed cooperative of more than 650 independently owned community pharmacies across Canada. Pharmasave believes that pharmacists play an important role in helping to improve patient care. For more than a year, Pharmasave has been providing Pharmasave Pharmacists, as medication management experts, with education and resources on medical cannabis, to help them better understand the current regulations and learn more about the possible uses, benefits and risks of medical cannabis. For those patients who take multiple medications and may have a complex medication therapy, pharmacists can work with patients and physicians to safely achieve positive health outcomes.

“Tilray’s products are available in ten countries around the world. Our products can be purchased by patients in pharmacies in each of those countries except Canada. Today’s announcement puts us in a strong position to expand the availability of our products to additional patients in need throughout Canada,” said Brendan Kennedy, Tilray CEO. “It’s exciting that we have the potential to bring our medical cannabis products to patients via pharmacies in Canada with a partner like Pharmasave, a company that shares our commitment to patient safety and access.”