FSD Pharma Announces Collaboration and License Agreement with World Class Extractions

Published: December 6, 2018

FSD Pharma Announces Collaboration and License Agreement with World Class Extractions

FSD Pharma Inc., which, through its wholly-owned subsidiary, FV Pharma Inc., is a licensed producer pursuant to the Cannabis Act, has entered into a definitive Collaboration and License Agreement with World Class Extractions Inc., a company that has developed a unique extraction process designed to produce quality, potent cannabis extracts. World Class is also in the process of completing its own previously announced reverse takeover of CBD Med Research Corp., and submitted its initial listing application to the Canadian Securities Exchange late last week.

Under the terms of the agreement and a related lease, FSD Pharma will provide World Class with space at its 620,000 square foot facility in Cobourg, Ontario, assist it in obtaining an extraction license from Health Canada, and provide World Class with the raw cannabis needed to produce cannabis extracts. In return, World Class will provide FSD Pharma with certain royalty rights over the profits derived from the sale of those cannabis extracts.

FSD Pharma will provide World Class with up to 5,000 square feet of space at the FSD Facility. World Class will build and install, at its expense, its own manufacturing facility within the larger FSD Facility, at which it intends to extract and process CBD enriched oil and other extracts. In addition, FSD Pharma will assist World Class in preparing an application to Health Canada under the Cannabis Act to obtain the necessary license to carry out its cannabis extraction activities. In particular, FSD Pharma will assist with the following components of the application:

a) drafting, or coordinating drafting of, all application materials;
b) sourcing all necessary third-party consultants required to prepare the application, and;
c) communicating with Health Canada throughout the application process.

FSD Pharma will, through FV Pharma, also provide World Class with substantial assistance in producing the World Class products. During the period prior to World Class obtaining the License, the parties will produce the World Class products under a license that FV Pharma intends to obtain. In addition, FSD Pharma will provide World Class with all of the raw cannabis needed to produce the World Class Products, both before and after World Class obtains the License.

As consideration for the significant assistance provided by FSD Pharma, there will be no capital obligations required. All considerations will be paid in the form of a tolling fee structure whereby World Class will retain 7% of the value of all World Class Products produced at the World Class Premises, which will be payable, at World Class’s option, in cash or World Class Products.

Rupert Haynes, CEO of FSD Pharma commented, “FSD Pharma has entered into this agreement to take advantage of World Class’s proprietary WCE Technology, which we believe provides us with a competitive advantage due to its unique benefits, such as the ability to process live and wet cannabis plants in their entirety. Under the terms of the agreement, we will have access to the highest quality CBD extracts produced from our own indoor, hydroponically-grown cannabis plants. We intend to work closely with the World Class team to help expedite the application process and the granting of the company’s extraction license from Health Canada.”

Michael McCombie, CEO of World Class stated, “Setting up our operations in the FSD Pharma facility ensures that we have access to both a steady supply of quality cannabis plants for processing and to a team of experts in the license application process. We expect to be listed on the CSE shortly and will be setting up our operations at the FSD Pharma facility in early 2019. This is an exciting time for World Class to be entering the cannabis marketplace with our patent-pending proprietary WCE technology and to be supplying the growing market for CBD extracts.”

Recent News

View All News Items

Latest Article

How Database Integrations Can Improve Every Step in Your Cannabis Supply Chain Labeling

How Database Integrations Can Improve Every Step in Your Cannabis Supply Chain Labeling

At any step in the cannabis supply chain, your labeling system should allow for full control and traceability, from seed to sale. Implementing lean principles and labeling best practices across the cannabis supply chain can help you streamline your seed-to-sale labeling process and help you gain control.

Click below to read the full blog and learn how to reduce waste, cut costs, and gain efficiency with cannabis labeling: https://bit.ly/2KwZ5IQ

Read Article