TORONTO, Feb. 12, 2019 (GLOBE NEWSWIRE) -- Canntab Therapeutics Limited (CSE: PILL, FSE: TBF1) (“Canntab”), a
leader in the development of precision oral dose cannabis tablets and capsules, announced today that it has entered into a
supply agreement (the “Agreement”) with FSD Pharma Inc. (“FSD Pharma”) and World Class Extractions Inc. (“World Class”) (the
“Purchasers”) to purchase hemp flower from Thomas Elcome (the “Supplier”). Pursuant to the agreement, the Purchasers have agreed to
buy approximately 1,000 kg of the Supplier’s 2018 hemp crop at a purchase price of $100.00 per kg per 1% of CBD extracted from the
flower.
Working alongside Canntab and World Class, FSD Pharma will extract CBD from the organic hemp obtained in the
purchase order. The Purchasers will process the hemp flower into gel capsules and tablets at the FSD Pharma facility in Cobourg,
Ontario. This facility is currently being transformed into a large hydroponic indoor cannabis production and processing facility,
with multiple business units co-supporting each other and operating under a single roof to exploit economies of scale and
operational efficiencies.
The Purchasers are in the process of executing a second agreement with the Supplier for the right and option to
purchase the Supplier’s entire 2019 hemp crop and beyond.
“This is an exciting industry where we see tremendous growth potential for our company and is a great opportunity for Canntab to
begin processing at the FSD Facility. Our collaboration and profit sharing agreement signed in September provides us with up to
10,000 square feet of space at the facility to build, install and manufacture a suite of novel cannabis oral dose delivery
platforms, including gel capsules and tablets, and other types of cannabis-based products, including sleep aids and pain relievers.
This agreement allows our three complimentary companies to realize a common goal of creating value for our shareholders,” stated
Mr. Jeffrey Renwick, Chief Executive Officer of Canntab.
“We look forward to working with Canntab, World Class and Mr. Elcome to obtain and produce high-quality hemp and
hemp derived products in this burgeoning market where the opportunity is sizable across North America,” said Dr. Raza Bokhari,
Executive Co-chairman & Interim CEO. “FSD Pharma recognizes the significant value and revenue potential that hemp holds in the
cannabis industry and is confident in the excellence of Mr. Elcome’s product and the abilities of Canntab and World Class to
produce.”
Michael McCombie, CEO of World Class, added, “World Class expects to begin installing our patent-pending
proprietary extraction technology at the FSD Pharma’s Cobourg facility following our imminent listing on the CSE. This agreement
will provide us with significant raw hemp supply for processing CBD enriched oil and extracts, which will be available for sale by
World Class and/or conversion to gel capsules and tablets by Canntab.”
“FSD Pharma, Canntab and World Class are ideal companies to make the most of the 1,000 kg of organic hemp crop
produced at my farm in Rockwood, Ontario,” said Mr. Thomas Elcome, President of 10975443 Canada Inc. “Preliminary testing has shown
an average of 3% CBD and I am confident that we will be able to extract a very high quality and very valuable full spectrum CBD,
and that this will be the beginning of a long and mutually beneficial relationship.”
About Canntab
Canntab Therapeutics is a Canadian cannabis oral dosage formulation company based in Markham, Ont., engaged in
the research and development of advanced pharmaceutical-grade formulations of cannabinoids. Canntab has developed patent-pending
technology to deliver standardized medical cannabis extract from selective strains in a variety of
extended-release/sustained-release pharmaceutical dosages for therapeutic use. In doing so, Canntab has developed a suite of
precision oral dose products that are unavailable elsewhere in the marketplace. Canntab’s primary focus is on providing
cannabis-based products to medical professionals that can be used to deliver therapeutic treatments to their patients. Canntab
trades on the Canadian Securities Exchange under the symbol PILL.
About FSD Pharma
FSD Pharma is focused on the development of the highest quality indoor grown, pharmaceutical grade cannabis and
on the research and development of novel cannabinoid-based treatments for several central nervous system disorders, including
chronic pain, fibromyalgia and irritable bowel syndrome. The Company has 25,000 square feet available for production at its Ontario
facility with an additional 220,000 square feet currently in development (with an estimated cost of $250 per square foot to be
completed in 2019).
FSD Pharma facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability
of up to 3,896,000 square feet.
FSD Pharma's wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and
Regulations, having received its cultivation license on October 13, 2017. FV Pharma’s vision is to transform its current
headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends
to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research
and development.
About World Class
World Class was incorporated under the Business Corporations Act (Ontario) on January 25, 2018 as a
private company. World Class has developed a unique extraction process to produce quality, potent cannabis extracts. The extraction
technology (the “WCE Technology”) uses ultrasound to effectively produce extracts from cannabis and hemp and isolate essential
compounds found in plant material. The WCE Technology has a number of advantages over conventional extraction methods, including
the ability to: (i) produce higher concentrated compounds; (ii) process larger volumes of cannabis or hemp; (iii) utilize undried
cannabis or hemp in the process; (iv) utilize all parts of the cannabis or hemp plants, and, (v) reduce production time.
Forward-Looking Information
Neither the Canadian Securities Exchange nor its regulation services provider accept responsibility for the
adequacy or accuracy of this release.
Certain statements contained in this press release constitute forward-looking information. These statements
relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will",
"projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the company's current belief or assumptions as to the outcome and timing of
such future events. Actual future results may differ materially. The forward-looking information contained in this press release is
made as of the date hereof, and the company is not obligated to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks,
uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking-information. The
foregoing statements expressly qualify any forward-looking information contained herein.
Contact Information:
Canntab Therapeutics Ltd.
Jeffrey Renwick
Chief Executive Officer
+1 289.301.3812
jeff@canntab.ca
