WeedMD and Phivida Sign Definitive Agreement on Cannabis Beverages Inc.

Canbev Positioned as an Early Mover in the Canadian Cannabis Beverage Market

TORONTO, CANADA, August 15, 2018 – 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. The launch of CanBev creates an opportunity for CBD-infused products to enter the consumer health products market. This consumer health products market is worth $5.6 billion in Canada alone based on data from Consumer Health Products Canada. 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

For more information, access our updated investor presentation here and corporate video here.

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. WeedMD 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.

Follow WeedMD On:

   

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 Enquiries:

Marianella delaBarrera
Margin Communications & Public Relations
Tel: 416-897-6644
Email: marianella@marginpr.com

Cautionary Statement on Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s Annual Information Form dated December 13, 2017 (the “AIF”) and other disclosure documents of WeedMD filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

 


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE



WELCOME

Are you the age of majority in your province?
(19+, or 18+ in Alberta and Quebec)

   

By entering our site you are agreeing to our
Terms of Use and Privacy Policy.