Exactus Inc (OTCQB:EXDI) and Canntab Therapeutics Limited (CSE:PILL) (OTCMKTS:CTABF) are teaming up to produce and sell immediate- and extended-release hemp-derived cannabinoid tablets.
Canntab will manufacture its hard pill formulations (made from CBD and other hemp derivatives) in a Florida facility operated by Exactus, using equipment supplied by Canntab. Manufacturing is expected to begin near the end of first quarter of 2020.
The hard-pill formulations will include a variety of hemp-derived cannabinoids for precise delivery in instant release, extended release and oral disintegrating tablet solutions to be distributed throughout the US.
The agreement unlocks a distribution channel to an estimated at $1 billion-plus in the US CBD market.
“We have been searching for a precision delivery system that matches the quality of our farming and supply chain, and we are pleased to have found a perfect firm” Exactus CEO Emiliano Aloi said in a statement Wednesday.
“This will facilitate the launch of our medical practitioner distribution channel with a differentiated product that separates us from our competitors, providing consumers with a precise dose of hemp derivates in instant release as well as time release delivery systems that they know.”
Canntab CEO Jeff Renwick said it has been his company’s goal to develop a relationship with a trusted partner in the US.
“I can confidently say that we have successfully achieved that goal as our agreement with Exactus opens the door to the growing CBD market in the United States, one in which our unique product is perfectly positioned to thrive in,” he said.
“Our hard pill formulations will be the most advanced CBD solutions available, with extremely precise dosing, high bioavailability, timed release, and long shelf life. Features that Doctors, retailers and the end consumer are searching for, all covered by 13 patents pending in the United States, and Canada.”
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The supply agreement states that Canntab will purchase ingredients from Exactus to be used in Canntab’s proprietary formulations. And the distribution agreement calls for the sharing of gross profits in a variety of ways dependent on how the sale is made and distributed.
Toronto-based Canntab is the only company in North America to have developed a product line of solid oral dose formulations for a variety of cannabis cannabinoid (THC & CBD) and terpenoid blends in exacting dosages.
Canntab’s proprietary cannabinoid formulations are intended to provide doctors, patients and the general consumer with a medical grade solution with all the features expected from any prescription or over-the-counter medication, including accurate dosing, high bioavailability and timed release in a solid oral dosage form.
Exactus, based in Delray Beach, Florida, expects to be distributing the specialized product line within the first quarter of 2020.
Exactus’ stock recently traded up 9% to $0.59 a share in New York. Trading on Canntab shares was halted earlier Wednesday but will resume at 1:45 pm ET.
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