In the companies’ sights via the joint venture are tablets, transdermal patches and other jointly evaluated products aimed at treating chronic pain, inflammation, epilepsy, anxiety disorders and others.
Stephen Van Deventer, the group's chairman and chief executive, said the latest deal further supported the company's mission to improve global health and health care via natural products.
"Our joint venture with Asterion comes at an important time, using Asterion's high-quality, low-cost, genetically uniform strains of medicinal cannabis will allow Preveceutical to supply the anticipated increasing demand for effective and personalised cannabis-based therapies."
Any cash needed by the joint venture will be financed 100% by Asterion, at cost.
Asterion will contribute industry knowledge and contacts to the joint venture, while Preveceutical will be providing access to its research team and the resources.
Any intellectual property (IP) and products developed by the joint venture during its term will be owned by Asterion and Preveceutical 80%: 20% respectively.
The development agreement has an initial term of two years, renewable by the parties for an additional two-year term.
Preveceutical will receive 20% of the net revenue earned or proceeds received by the joint venture from the sale of the IP and products developed by the joint venture.