Cannabics Pharmaceuticals Inc. (OTCMKTS:CNBX) management attended this year’s World Economic Forum (WEF) in Davos, Switzerland. As a result, management met with NewCanna Hub where they entered a deal to pursue a joint project in Colombia. Notably, the project will produce Cannabics’ proprietary Slow Release (SR) capsules.
The cannabis sector is expanding rapidly and Colombia is one of the few regulated markets in the world. However, other markets are opening up led with the U.S. and Canada. Notably, Cannabics developed the SR capsules as part of the strategy to utilize the revenue potential of the fledgling market.
Leveraging CBD’s therapeutic potential
Interestingly, NewCanna has established production facilities in Colombia on which the joint venture will rely. Further, the project will actively engage all regulated markets across the globe for product distribution deals. However, the major target markets are Colombia and North America.
According to Eyal Barad, CEO of Cannabics, the joint venture is in line with the company’s strategy. Notably, Cannabics intends to be the prime source of quality medical cannabis products for the expanding customer base.
“We believe that the intrinsic therapeutic potential of cannabinoids for medical application is boundless. We are excited at the potential opportunity to expand and distribute our products through NewCanna’s global distribution network,” said Barad.
Cannabics increases stake in Seedo
As a result of the partnership, Cannabics’ share price is slowly edging towards $0.5 after tanking steadily since March 2018. Interestingly, the management wants to build on the momentum to continue executing its strategy.
Notably, the firm just converted a $1 million loan to Seedo Corp. into common shares. Seedo produces novel machines that grow organic cannabis. The machines complete their tasks automatically without human supervision. Having a stake in the cannabis-focused technology company is quite strategic for Cannabics. Notably, the firm will get exclusive access to the novel solutions that roll off Seedo’s production line.
According to Zohar Levy, CEO and Director of Seedo Corp, the strengthening relationship between Seedo and Cannabics is strategic. In particular, the firms stand to benefit from cutting edge products that will give them the much-needed competitive advantage.