Laguna Signs Letter of Intent to Acquire Distribution Rights of Swiss Made Cannaceuticals CBD Skin Care Line and License of Brand Name in an Exclusive Licence Agreement that Includes Clinical Trials and Existing Inventory
The LOI contemplates a manufacturing and licensing arrangement that includes the following material terms:
- Laguna will purchase the entire existing Canna inventory of 4,500 units for each of the eight existing Canna products for payment of: (i) US$250,000 (less an initial deposit of US$24,500 that is payable within 7 days of entry into the M&L Agreement) on a monthly payment schedule over a six-month period; and (ii) a licence fee of US$100,000 payable in common shares of the Company at the prior day's closing market price upon entry into the M&L Agreement.
- Laguna will receive an exclusive licence to sell the Canna products for an initial period of two years in the USA and Canada. In addition, Laguna will receive the licence and marketing rights to sell the Canna products in Asia, Europe and Mexico subject to Canna receiving regulatory approval for such sales in those markets and provided Laguna has expanded to those countries. The renewal term is anticipated to be determined at the end of the initial term.
- Canna will contribute its research and development expertise in CBD-derived, high quality, Canna skin care products and Canna will continue to manufacture and/or arrange manufacturing for future Canna skin care inventory requirements for Laguna as required.
- Laguna will take possession of all of the existing Canna inventory after the initial deposit and licence fee has been paid.
The Canna clinical trials were conducted by BioScreen (BioScreen) Testing Services Inc. in accordance with the International Conference of Harmonization Tripartite Guideline on Good Clinical Practice, applicable FDA regulations / guidelines.
Pending due-diligence and any necessary approvals Laguna anticipates offering the Canna products in the USA between August - September of 2016 with Canada to follow before the end of 2016.
Laguna will publish specific details regarding the findings of the research that was conducted for the Canna "Facial Serum" at a later date.
Stuart Gray, CEO and founder of Laguna Blends Inc. said, "Canna has spent a tremendous amount of time and financial resources to create what we believe is the highest quality CBD skin care line available on the market today. By combining the known benefits of CBD's into a skin care product, we anticipate that Laguna is poised to become a direct sales leader in the skin care industry." Stuart Gray went on to say, "By offering the Cannaceuticals skin care line of products to our affiliates, the Company anticipates an increase in product sales and recruitment of new affiliates."