Canntab Therapeutics Limited, a leading innovator in cannabinoid and terpene blends in hard pill form for therapeutic application, today announced the signing of a binding Letter of Intent (“LOI“) to establish a joint venture with World Class Extractions Inc. Pursuant to the terms of the LOI, WCE will install certain extraction and processing systems at Canntab’s production facility in Markham, Ontario. WCE is expected to begin delivery and installation of the Systems this month, and Canntab is expected to utilize the Systems upon receiving its Licensed Producer status from Health Canada.
As a late stage applicant, Health Canada approval under the Cannabis Act is at an advanced stage, which, once obtained, will allow Canntab to process high quality cannabis derivatives at the Facility. The Systems to be delivered and installed by WCE at the Facility include turnkey components from WCE’s portfolio of machines, including the BOSS next generation CO2 cannabis extraction system.
“We are excited to announce this strategic Joint Venture with Canntab and we are pleased that Canntab places their trust in our technology, people and our breadth of knowledge and experience in the cannabis and hemp extraction and processing space,” said Rosy Mondin, CEO of WCE. “We look forward to supporting Canntab’s growth as a global leader of research and production of hard-pill oral dosage therapeutic cannabis product forms. Our WCE team has spent the last half-decade concentrating on R&D to bring leading technology and solutions to cannabis and hemp oil extraction. The Joint Venture will receive recurring revenue through its Toll Processing services and will increase WCE’s market presence. Joint venture partnerships, such as the ones with FV Pharma Inc. and Canntab, are key to the growth and success of WCE.”
Following execution of the definitive joint venture agreement (the “JV Agreement“), WCE and Canntab will each hold a 50% interest in the Joint Venture that will be established. The Joint Venture will acquire extraction Systems from WCE. The equipment will initially have an extraction and processing capacity of up 225 kilos of biomass per day, which could provide approximately 18 kilos of oil from high potency cannabis. This could then be used to create approximately 1,800,000 10mg tablets. Under the JV Agreement, the Systems will remain the property of WCE until all costs are recovered, at which time the equipment will become the property of the Joint Venture.
Canntab requires a consistent GMP grade of cannabis extracts as its active ingredients. While Canntab will continue to contract with third party suppliers such as its recent announcement with Heritage Cannabis Corp. on May 21, 2019, the Systems received from WCE will augment Canntab’s own extraction capacity.
“The availability of supply and unsustainable pricing within the extraction marketplace is a concern,” said Jeff Renwick, Co-Founder and CEO of Canntab “having the BOSS and World-Class’ expertise will give Canntab the ability to control its own destiny by securing an ongoing supply for its manufacturing operations, where required. Multiple separation technologies including chromatography will also allow Canntab to separate the various cannabinoids and terpenoids, in order to diversify and expand its portfolio of cannabis based solid oral dosage forms. With these elements, such as CBN and CBG, Canntab will be able to do further research into promising formulations that may approach a range of medical conditions.”
Canntab Therapeutics Ltd. is a Canadian company engaged in the research and development of advanced, pharmaceutical-grade formulations of cannabinoids and terpenes.