Heritage Cannabis Holdings Corp (CSE:CANN) (OTC:HERTF) signed a term sheet to launch a two-year joint venture with Cannahive Inc to produce cannabis-infused edible products, the company announced Tuesday.
The venture, which the parties expect to kick off in September, will utilize Cannahive's formulations for the production of gummies and chocolates, while Heritage's CannaCure will provide the cannabis oil.
The products will be sold under Heritage’s brands to the provincial and territorial boards as well as licensed retailers in Canada.
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Cannahive delivers experienced manufacturing management services and a portfolio of intellectual property and processing patents for pharma-grade commercial manufacturing of edible cannabis products, the company said,
"With our vape cartridge and tincture products hitting the shelves in BC, Alberta and Manitoba in the coming weeks, the joint venture with Cannahive is a low cost, low-risk approach for Heritage to enter the next phase of our cannabis 2.0 strategy," Heritage CEO Clint Sharples said in a statement.
"We are excited to be launching our edibles product vertical with the backing of the Cannahive team who has the talent and experience to make this next phase of Heritage's strategy successful."
The venture will operate at CannaCure, Heritage’s licensed facility in Fort Erie, Ontario. CannaCure will provide the facilities, warehousing, quality assurance and other required services, while Cannahive will provide production and packaging equipment as well as ongoing equipment maintenance.
Proceeds from the venture will be split evenly after direct costs are paid, the company said.
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