Canntab Therapeutics Limited (CSE: PILL.CN) (OTCQB: CTABF) (FRA: TBF1.F), a company engaged in the development of pharmaceutical-grade formulations of cannabinoids and terpenes, has signed a supply agreement and a non-exclusive distribution and profit-sharing agreement with Exactus (OTCMKTS: EXDI), a farm operator and manufacturer of hemp-derived phytocannabinoid products in the U.S.
Under 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).
As part 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 will automatically renew thereafter for additional two-year terms.
Under the distribution agreement, Canntab and Exactus will share the gross profits derived from the sale of Canntabâ€™s hard pill formulations, with the gross profits to be allocated in one of two ways, depending on the party originating such sales. The agreement is for an initial term of two years and could be renewed thereafter for two additional two-year terms.
Meanwhile, the companies are currently working to finalize and enter into a separate sublease agreement, which is required to implement the partiesâ€™ 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 would be responsible for providing equipment and expertise.
â€śThe 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,â€ť Exactus President and CEO Emiliano Aloi said in a statement.