Under the deal, THC will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products, disposable vape pens, distillate droppers and shatter and wax concentrate product in Oklahoma.
Terms of the agreement include: the initial term will be for a period of five years; the licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the company; THC will follow formulations and processes provided by the company; during the first 180 days of the initial term, THC will employ two full-time salespeople in Oklahoma to promote, market, advertise, and sell the Licensed Products; and the agreement may be terminated in certain circumstances.
Oklahoma Cannabis Market
CannAmerica is looking to sell its edibles and other products to patients in Oklahoma.
“We are pleased to announce that we expect CannAmerica branded products to be available in the Oklahoma medical cannabis market in the coming months,” Dan Anglin, the CEO and co-founder of CannAmerica, said in a statement.
“By signing this agreement, CannAmerica will be poised to bring its menu of cannabis-infused edible products, concentrates, and other medicinal cannabis product lines to the great state of Oklahoma. We have long been ready to bring our product lines to patients in the southern United States and are proud to be working with THC and their extraordinary management team,” Anglin added.
Mexico Joint Venture
Meanwhile, CannAmerica has entered into an agreement to expand its letter of intent to create a joint venture with Sericea Labs S.A. de C.V. and CBDistribution Company Ltd.
The company is looking to build a facility in Mexico for importing and warehousing licensed CBD products as well as CBD oils and tinctures destined for refining.
The term of the LOI has been extended to January 1, 2020.
“The company has learned that the Government of Mexico is making strides in the effort to legalize hemp-based products for manufacturing and distribution across Mexico,” Anglin stated.
“We understand that the legislative process to create a new industry sometimes takes more time than expected, and have decided to extend the LOI through to the end of the year to allow more time for legalization to pass through the legislative bodies. We look forward to executing the agreement upon successful passage of legislation to legalize hemp and cannabinoid products in Mexico,” the CannAmerica CEO noted.