ZoomerMedia Ltd V.ZUM

Retailing Canopy Weed Has Begun

[nozzpack]

RecognitionofroyaltyrevenuefromaffinitypartnershipandexclusivebrandlicensingagreementswithCanopy signed October 2019
 

The affinity partnership agreement allows Canopy the exclusive right to use the “CARP Recommended” and “Zoomer Recommended” seals for Canopy’s medical and recreational brands, respectively.

This agreement is for a two-year term commencing October 17, 2018, with a one-year renewal option. As part of this agreement, Canopy has committed to an annual minimum spend of $0.30 million with ZoomerMedia through its various media properties and television production facilities.

 

The exclusive brand licensing agreement allows Canopy and ZoomerMedia to work together to develop Zoomer and CARP branded cannabis products to be ready for retail sale by April 2020 at the latest.

As each product is developed, a separate royalty arrangement will be agreed upon by ZoomerMedia and Canopy.

This exclusive brand licensing agreement also has a two-year term commencing October 17, 2018 with a one-year renewal option.

As part of this agreement, ZoomerMedia also received 16,147 common shares of Canopy.
 

 

[JackBNimble26]

Since CARP is a CRA registered federal not for profit, it will be interesting to see how this new CFO manages to ensure that the proceeds go to further the work of this not for profit versus the potential for shall we say conflict. Many are watching to see if this is another WE situation where CARP may or may not be fulfilling its legally required mandate versus enriching anyone.