Innocan Pharma Corporation (INNO) has signed a manufacturing and distribution agreement with Ayurcann Inc.
Under the terms of the agreement, Ayurcann will manufacture Innocan's CBD Topicals at its licensed facility and act as the exclusive Canadian distributor for the products. Ayurcann will pay Innocan Pharma royalties based on net sales of the products.
The agreement is subject to Health Canada approval which is expected within the next few months.
Ayurcann will be responsible for meeting the Canadian regulations and registration requirements. The agreement further specifies the "Minimum Sold Quantity" of the Products and the expected minimum growth of sales per year.
CEO of Ayurcann, Igal Sudman commented on the partnership with Innocan.
"Our company is thrilled to exclusively manufacture and distribute Innocan's SHIR Beauty and skin care line as well their Relief & Go topical products in Canada. The pharmaceutical expertise of Innocan together with Ayurcann's large extraction capacity and manufacturing capabilities will be combined to bring top of the line products to market at scale and price points that will allow for wide market access. We are very excited to bring these products into the Canadian market in the very near future."
InnoCan is looking forward to selling its unique line of products in Canada in collaboration with Ayurcann," said Iris Bincovich, InnoCan's CEO and a member of Ayurcann's advisory board.
"The market opportunity in Canada is unique as Canada was one of the early adaptors of CBD usage and potential customers in Canada are knowledgeable about the benefits offered by CBD. We expect InnoCan's product to be accepted by the market, as it appreciates the high efficacy of CBD products."
The new Canadian distribution arrangement with Ayurcann replaces the company's prior Canadian manufacturing and distribution agreement with Endless Sky Incorporated that was terminated in July in accordance with its terms.
Innocan is a pharmaceutical tech company that focuses on the development of several drug delivery platforms combining cannabidiol (CBD).
Ayurcann Holdings Corp. is a leading provider of customized post-harvest outsourcing solutions to licensed cannabis producers. Ayurcann offers end-to-end full outsourcing solutions including extraction, refinement, formulation, packaging, fulfillment and distribution.
InnoCan Pharma Corporation (INNO) opened trading at C$0.52 per share.
Ayurcann Holdings Corp (AYUR) opened trading at C$0.23 per share.