Cannabis Strategic Ventures and Sunniva Inc. Enter Into Cannabis Extraction Services Agreement

Published: July 17, 2018

Cannabis Strategic Ventures and Sunniva Inc. Enter Into Cannabis Extraction Services Agreement

Cannabis Strategic Ventures Inc. and Sunniva Inc. signed a cannabis concentrate extraction services agreement between CP Logistics LLC, Sunniva’s wholly-owned U.S. subsidiary and Pure Applied Sciences, Inc. (“PAS”), Cannabis Strategic’s wholly-owned subsidiary. Under the terms of the agreement, CPL will perform white label services producing high quality, ultra-purified cannabis extracts out of its Sun-Oil Facility in Cathedral City, California for PAS under the “Pure Organix™” brand name, which was recently acquired by Cannabis Strategic. PAS will continue to focus on developing additional formulations, intellectual property and brands for future licensing opportunities. The agreement is for a 12-month term that may be renewed for an additional 12 months at the request of PAS at the expiry of the initial term.

“We have selected Sunniva because of its emphasis on creating great products for great brands,” commented Simon Yu, CEO of Cannabis Strategic. “We created the Pure Sciences brand based on premium quality and sound manufacturing practices. Sunniva shares our values relative to the area and we are pleased to have them as our manufacturer. We are especially impressed with their plans to build greenhouse and extraction facilities compliant with Current Good Manufacturing Practice (“cGMP”) standards.”

The agreement calls for CPL to initially produce cannabis oils for use in PAS’ vape pen cartridges, but expansion into other product areas is expected.

Tony Holler, CEO of Sunniva, commented, “As one of the highest quality producers in the marketplace, we believe we are in an excellent position to provide brand product manufacturing services for Cannabis Strategic. Both of our firms share the vision of becoming leaders in providing clean, medical grade cannabis products to consumers. We welcome Cannabis Strategic to our growing portfolio of customers.”