Hill Street Beverage Company Inc (CVE:BEER) has signed a non-binding term sheet with Molecule Holdings Inc to produce select cannabis-infused beverages for Hill Avenue Cannabis Co, the wholly owned subsidiary of Hill Street.
The Notice of New Product Introduction to Health Canada was filed on October 1 for the first beverages to be produced by the partnership, Hill Street said in a statement Thursday.
The filing begins the 60-day notice period wherein the two companies can begin arranging sales and distribution agreements with provincial regulators and independent retailers.
READ: Hill Street Beverage sees a lift in year-to-date revenue as it prepares to launch cannabis 2.0 products
Hill Street said the three-year agreement will include both formulating and manufacturing beverage products using proprietary infusion technologies provided either by Molecule or Hill Street's previously announced Joint Manufacturing Partnership with Lexaria Biosciences Corp (OTCMKTS:LXRP) (CSE:LXX), once Hill Street's cannabis processing facility has been licensed by Health Canada.
Molecule operates a 15,000 square foot, state-of-the-art cannabis beverage manufacturing facility in Lansdowne, Ontario, which has been fully licensed for sales of cannabis 2.0 products including edibles and beverages.
It is anticipated that Hill Avenue Cannabis beverages will be available to purchase during the holiday season in select provinces and expanding nationally in 2021.
"We are delighted to expand our manufacturing strategy to include Molecule, given their tremendous knowledge and expertise in beverage formulation, innovation, development, and manufacturing,” said Hill Street CEO Terry Donnelly. “Their areas of expertise complement ours and we are very much looking forward to working with them to create a portfolio of world-class beverages."
Philip Waddington, CEO of Molecule, added: "Hill Street is a renowned leader in the alcohol-free beverage market. We are pleased and excited to be entering into this partnership with such a reputable company, led by an extremely capable team."
Hill Street’s stock recently traded up 18% to C$0.06 a share.
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