CanBev Positioned as an Early Mover in the
Canadian Cannabis Beverage Market
Toronto, ON -- Aug. 15,
2018 -- InvestorsHub NewsWire -- WeedMD
Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE) (“WeedMD”)
and Phivida Holdings Inc. (CSE: VIDA) (OTC.PHVAF)
("Phivida") are pleased to announce the signing of a final
definitive joint venture agreement (“Agreement”) to develop and
operate Cannabis Beverages Inc. (“CanBev”) at WeedMD’s
state-of-the-art greenhouse facility in Strathroy,
Ontario.
As an early mover in the
cannabis-infused beverage market, CanBev is positioning itself to
capture significant market share in Canada’s highly-anticipated
consumable cannabis market. According to Consumer Health Products
Canada, the CBD-infused products market is worth $5.6 billion in
Canada alone. The joint venture will be focused on product
development, manufacturing, marketing and distribution of
cannabis-infused beverages for Canada and export to licensed
international markets. Click here for an
introductory video on the CanBev joint venture project.
Under the terms of the Agreement,
both companies will be strategic partners in the development of
CanBev. WeedMD will act as the exclusive supplier of cannabinoid
extracts for use in innovative cannabis infused consumer products
to be made at the CanBev facility. In doing so, WeedMD will
designate manufacturing space at its 610,000 sq. ft.
state-of-the-art licensed cultivation and processing facility
located in Strathroy, Ontario.
In addition to supplying CanBev
with premium, high-quality cannabis, WeedMD will assist CanBev with
obtaining all necessary federal licenses and permits and has also
agreed to provide all current and future genetics.
“We are thrilled to begin the
development of this joint venture. With the launch of CanBev,
WeedMD will be one of the first to introduce an innovative and
popular consumption method with our cannabis-infused beverages –
adding a new brand category for the medical and adult-use markets,”
said Keith Merker, CEO of WeedMD. “WeedMD is proud to collaborate
with Phivida on this joint venture and to work alongside a
world-class management team that includes former senior executives
from beverage and other industry leaders who worked for Red
Bull®, Seagram’s®, Proctor and
Gamble®, and McKesson. Leveraging proven success, we
will be well-positioned to execute on our growth plans for infused
beverages.”
Phivida will be sublicensing its
current and future trademarks, intellectual property, branding and
packaging to CanBev. Phivida has also agreed to lead new product
innovation, research and development, formulation, packaging and
branding for CanBev.
“The Phivida team is excited to
contribute our management, expertise and product knowledge to the
CanBev joint venture,” said Jim Bailey, CEO and President of
Phivida. “WeedMD is an ideal partner for Phivida and we are
thrilled to bring our cannabinoid-infused beverages and brands back
home to Canada. WeedMD provides CanBev with solid infrastructure,
strong management, world-class genetics and proven success in the
Canadian healthcare market. We are very proud to partner with best
in class among the Canadian licensed producers.”
Transaction
Summary
The joint venture will be
structured as a jointly-owned company with a dedicated board of
directors and operational management team. Phivida and WeedMD will
retain 50% each of the Class A shares. The shares issued will
correspond to CanBev’s appointment of nominees to a Board of
Directors— to be made up of five individuals, two nominated by
Phivida, two by WeedMD, and one independent director. Phivida
and WeedMD have agreed to fund capital requirements of CanBev
equally, and on a pro-rata basis, from their respective treasuries,
beginning with initial shareholder advances of $375,000
each.
Cannabis Beverages
Inc.
Cannabis Beverages Inc. (or “CanBev”) plans to manufacture, market,
and distribute cannabinoid infused products for use initially into
the medical market as well as for the recreational Canadian
markets, and then for use internationally, where such products are
permitted. CanBev cannabis-infused products are expected to be
available in retail locations and online throughout Canada in late
2019, or upon the implementation of government legislation on
consumables. CanBev has plans to build and operate a federally
approved cannabis-infused beverage production facility to be
located on the WeedMD 610,000 sq. ft. expansion property located in
Strathroy, Ontario. CanBev has no plans to sell any
cannabis-infused products in the U.S. or any other market unless or
until it is legally permissible to do so at all government
levels.
Phivida Holdings
Inc.
Phivida ["fiii-vee-daa"] infuses
CBD derived from Hemp into functional foods, beverages and health
products. Phivida uses encapsulated cannabinoids from hemp oil into
water soluble form, enhancing bioavailability, and timed released
within the body. Phivida's CBD beverages, foods and supplements
contain a proprietary blend of phytonutraceuticals studied to
target a range of health conditions, from chronic pain, treatment
of stress and anxiety to reducing inflammation in the body. The
World Anti-Doping Association's recently lifted a ban of CBD from hemp
oil and the World Health
Organization's recent statement supports clinical benefits
of CBD for athletes and active families. Celebrating; Health and
Wellness, In Harmony™, Phivida's vision is to lead the market as
the benchmark quality standard in premium CBD infused foods,
beverages and clinical products, with a dedication to research,
education and investing back into the communities we serve. Phivida
is a publicly traded company listed on the Canadian Securities
Exchange under the ticker symbol "VIDA" and the OTCQX
Market as “PHVAF”. Join our
social media network @Phivida.
Phivida Holdings
Inc.
Jim Bailey, Chief Executive Officer
Tel: +1 (844) 744-6646 (ext. #2)
Email: IR@phivida.com
To learn more, visit us at www.phivida.com
Follow Phivida Holdings
Inc. at
https://www.facebook.com/phivida/
https://www.linkedin.com/company/phivida/
https://twitter.com/Phivida
https://www.instagram.com/phivida/?hl=en
About WeedMD
Inc.:
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx
Inc., a federally-licensed producer and distributor of medical
cannabis and oils under the Access to Cannabis for Medical Purposes
Regulations (ACMPR). The Company operates a 26,000 sq. ft. indoor
facility in Aylmer, Ontario, and a second cultivation site at its
greenhouse facility located in Strathroy, Ontario, representing
610,000 sq. ft. or 14 acres under glass. WeedMD has entered into
supply agreements in addition to strategic relationships with
established cannabis brands. The Company is focused on providing
medical cannabis to the seniors’ markets in Canada through its
proprietary seniors care program. It is dedicated to educating
healthcare practitioners and furthering public understanding of the
role that medical cannabis plays – including as it pertains to
regulatory requirements, indications and potential side
effects.
For more information, access our
investor presentation here and corporate video here.
Follow WeedMD
On:
https://www.facebook.com/weedmd/
https://www.linkedin.com/company/weedmd
https://twitter.com/WeedMD
https://www.instagram.com/weedmd/
For further information,
please contact:
WeedMD Inc.
Keith Merker, Chief Executive Officer
Tel: 519-765-2440 Ext. 222
Email: investor@weedmd.com
To learn more, visit us at www.weedmd.com
For Media
Inquiries:
Marianella delaBarrera
Margin Communications & Public Relations
Tel: 416-897-6644
Email: marianella@marginpr.com
Cautionary Statement on
Forward-looking Information
This news release contains
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Phivida
and WeedMD to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. These forward-looking statements
include, but are not limited to, statements relating to our
expectations with respect to: the timing and outcome of the CanBev
joint venture; the anticipated benefits of the CanBev joint venture
to the parties; impact of the CanBev joint venture and anticipated
growth for the parties; and the anticipated timing of availability
of applicable legislation in Canada. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects” or “does not expect”, “is expected”,
“estimates”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved. In respect of the
forward-looking statements and information concerning the
anticipated benefits of the CanBev joint venture and the
anticipated timing of availability of applicable legislation in
Canada, Phivida and WeedMD have provided such statements and
information in reliance on certain assumptions that they believe
are reasonable at this time, including assumptions as to the
necessary regulatory approvals and other expectations and
assumptions concerning the CanBev joint venture.
Since forward-looking statements
and information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. Readers are cautioned that
the foregoing list of factors is not exhaustive. Additional
information on other factors that could affect the operations or
financial results of the parties are included in reports on file
with applicable securities regulatory authorities.
The forward-looking statements
contained in this news release are made as of the date of this
release and, accordingly, are subject to change after such date.
Phivida and WeedMD do not assume any obligation to update or revise
any forward-looking statements, whether written or oral, that may
be made from time to time by us or on our behalf, except as
required by applicable law.
None of the TSX Venture Exchange or
the Canadian Securities Exchange and their Regulation Services
Providers accept responsibility for the adequacy or accuracy of
this release.
