- Canntab will
manufacture its hard pill formulations (made
from CBD and other hemp derivatives) in
a Florida facility operated by Exactus, using equipment
supplied by Canntab
- Manufacturing is
expected to begin near the end of Q1
2020
- The agreements
unlock a distribution channel to an estimated $1B+ CBD market in
the U.S.1
- Canntab's hard pill
formulations include extended release, immediate release and oral
disintegrating tablets made with a variety of hemp-derived
cannabinoids in exacting dosages
- Canntab is also
expected to manufacture its growing line of products at
the Florida facility on a white label basis, for
distribution to U.S. and International third-party distributors and
to end consumers
TORONTO, ON --
November 20, 2019 -- InvestorsHub NewsWire
-- Canntab Therapeutics Limited (CSE:PILL.CN)(OTCQB:CTABF)
(FRA:TBF1.F) (the "Company" or "Canntab"), the leading innovator in
cannabinoid and terpene blends in hard pill form for therapeutic
application, today announced the signing of a supply agreement (the
"Supply Agreement") and a non-exclusive distribution and profit
sharing agreement (the "Distribution Agreement", and together with
the Supply Agreement, the "Agreements") with Exactus Inc. (OTCMKTS: EXDI) ("Exactus"), a farm operator and
manufacturer of hemp-derived phytocannabinoid products in the
U.S.
Pursuant to the Supply
Agreement, Canntab will purchase hemp-derived CBD oil resin from
Exactus for use in its hard pill formulations, which are expected
to include a variety of hemp-derived cannabinoids, such
as Cannabidiol (CBD)
and Cannabigerol (CBG), in
instant release, extended release and oral disintegrating tablets
with exacting dosages. In connection
with the entering into of the Agreements, Canntab is expected to
equip a facility in Florida for the purpose of
manufacturing advanced hemp-derived cannabinoid hard pill
formulations for distribution throughout the U.S. The Supply
Agreement is for an initial term of two years, and unless
terminated in accordance with its terms, will automatically renew
thereafter for additional two year terms.
______________________________
1 Source: https://www.statista.com/statistics/760498/total-us-cbd-sales/
Pursuant to the
Distribution Agreement, Canntab and Exactus will share the gross
profits derived from the sale of Canntab's hard pill formulations,
with the gross profits to be allocated in one of two ways,
depending on the party originating such sales. The Distribution
Agreement is for an initial term of two years, and unless
terminated in accordance with its terms, may be renewed thereafter
for two additional two-year terms.
The parties are currently
working to finalize and enter into a separate sublease agreement,
which is necessary to implement the parties' arrangement under the
Agreements. Under the sublease agreement, Exactus is expected
to be responsible for building out and making improvements to
the Florida facility while Canntab is expected to be
responsible for providing equipment and
expertise.
"Having known Jeff for over
a decade, I was eager to connect Canntab's game changing
pharmaceutical solutions with Exactus' high quality inputs,"
explains Kevin J. Esval. Mr. Esval serves as an Independent
Director at Exactus Inc., and is on the Board of Directors of
multiple healthcare and specialty pharmaceutical companies. Mr.
Esval continues, "Canntab has the future of medical cannabinoid
solutions in a familiar pharmaceutical dosage form: a hard pill
with timed release properties. These products are a perfect fit for
Exactus as we are focused on developing high quality medical
solutions that are currently unavailable in a market flooded with
sub-optimal methods of delivery."
Jeff Renwick, Chief
Executive Officer of Canntab, said the logic of combining the two
companies' operations was compelling. "Our goal has been to develop
a relationship with a trusted partner in the United
States -one that allows us to bring our unique products to
market in the U.S., and for our shareholders to benefit from that
opportunity. I can confidently say that we have successfully
achieved that goal, as our agreements with Exactus open the door to
the growing CBD market in the United States. Our hard pill
formulations will be one of the most advanced CBD solutions
available, with extremely precise dosing, high bioavailability,
timed release, and long shelf life. These are features that
doctors, retailers and end consumers are searching for, all of
which are covered by 13 patents pending in the United States,
and Canada."
"The supply and
distribution agreements come at the perfect time during the
evolution of our business strategy. The agreements will enable
Canntab to bring their patent-pending hard pill formulations
to the United States, adding to our suite of medically focused
products and enhancing our position as the premier medically
focused CBD solutions provider in the United States,"
said Emiliano Aloi, President & CEO of Exactus. Mr. Aloi
continues, "with the initiation of manufacturing expected to begin
in the new year, we will leverage our growing distribution network
to capture consumers looking for the next generation of medically
focused products with maximum accuracy and total dose
control."
About Canntab
Therapeutics
Canntab Therapeutics Ltd.
is a Canadian company engaged in the research and development of
advanced, pharmaceutical-grade formulations of cannabinoids and
terpenes. In doing so, Canntab has developed a suite of precision
oral dose products that are unavailable elsewhere in the
marketplace, formulated in multiple doses and time release
combinations. Canntab's proprietary hard pill cannabinoid
formulations will provide doctors, patients and the general
consumer with a medical grade solution with all the features you
would expect from any prescription or over the counter
medication.
Canntab is a late stage
applicant to Health Canada to be granted its Licensed Producer
status: Cannabis (Processing-Standard), and Federal Sales
(Medical). The Company intends to submit the final evidence package
to Health Canada at the end of November 2019, and expects
receipt of Licensed Producer Status in approximately 10 weeks
thereafter.
Canntab is positioned to
maintain high gross profit margins, due to its extensive inventory
of machinery and equipment, some of which will be used for
manufacturing in Florida. Canntab trades on the Canadian
Securities Exchange under the symbol PILL, on the OTCQB under the
symbol CTABF, and on the Frankfurt Stock Exchange under the symbol
TBF1.
About
Exactus
Exactus Inc. is dedicated
to introducing hemp-derived phytocannabinoid products that meet the
highest standards of quality and traceability into mainstream
consumer markets. The Company has made investments in farming and
has over 200 acres of CBD-rich hemp in Southwest Oregon. The
Company is introducing a range of consumer brands, such as Green
Goddess Extracts™, Levor Collection, Phenologie, Paradise CBD and
Exactus. Hemp is a federally legal type of cannabis plant
containing less than 0.3% THC (tetrahydrocannabinol), which is the
psychoactive component of the cannabis plant. After over 40
years of prohibition, the Agricultural Improvement Act of 2018,
known as the 2018 Farm Bill, legalized hemp at the federal level.
Hemp production will be regulated by the United States Department
of Agriculture (USDA) and the States. As a result, in 2019 hemp was
generally removed from the Controlled Substances Act (CSA) and
enforcement by the Drug Enforcement Administration (DEA).
For further information:
Canntab Therapeutics Limited
Jeffrey Renwick
Chief Executive Officer
+1 289.301.3812
jeff@canntab.ca
Exactus Inc.
Andrew Johnson
Chief Strategy Officer Exactus Inc.
509-999-9695
ir@exactusinc.com
Cautionary
Statements
Neither the Canadian
Securities Exchange (the "CSE") nor its Market Regulator (as that
term is defined in the policies of the CSE) accepts responsibility
for the adequacy or accuracy of this release.
This press release contains
certain "forward-looking information" within the meaning of
applicable Canadian securities legislation and may also contain
statements that may constitute "forward-looking statements" within
the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company's control. Generally, such forward-looking
information or forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or may contain statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information and forward- looking statements contained herein
include, but are not limited to, information concerning the
proposed execution of a sublease agreement, and the timing of the
build out of the Florida facility, and expectations as to
timing of manufacturing and distribution of hard pill formulations
pursuant to or in connection with the Agreements. Although the
Company believes that the assumptions and factors used in
preparing, and the expectations contained in, the forward-looking
information and statements are reasonable, undue reliance should
not be placed on such information and statements, and no assurance
or guarantee can be given that such forward- looking information
and statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information and statements. In particular, there is no
guarantee that the parties will successfully negotiate and enter
into the sublease agreement or complete the various transactions
contemplated by the Agreements on the terms contemplated herein and
therein, or at all, or that the timing anticipated by the parties
to manufacture and distribute hard pill formulations will be
achieved. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws.
This press release includes
market and industry data that has been obtained from third party
sources, including industry publications. Although the Company
believes that the industry data is accurate and that its estimates
and assumptions are reasonable, there can be no assurance as to the
accuracy or completeness of such data. Third party sources
generally state that the information contained therein has been
obtained from sources believed to be reliable, but there is no
assurance as to the accuracy or completeness of included
information. Although the data is believed to be reliable, the
Company has not independently verified any of the data from
third-party sources referred to in this press release or
ascertained the underlying economic assumptions relied upon by such
sources.
SOURCE Canntab Therapeutics
Limited
