Under the agreement, the licensee will have an exclusive license to manufacture and distribute CannAmerica branded cannabis-infused gummy products and disposable vape pens, and Live Labs branded cannabis concentrate products, including droppers, shatter and wax concentrate products, and gelatin-based capsules in the Commonwealth of Massachusetts.
Under the terms of the LOI, the initial term of the license agreement will be for a period of three years; net price payable from Canna Provisions to the company will be determined by a per package/unit fee relating to CannAmerica products that the licensee decides to produce; Canna Provisions will pay the company a license fee to manufacture and distribute the company’s products; the licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the company; Canna Provisions will follow formulations and processes provided by the company; During the first 180 days of the initial term, the licensee is expected to employ one full-time sales representative to exclusively promote, market, advertise and sell licensed products.
Subject to board approval from the company and completion of satisfactory due diligence, the parties intend to enter into a definitive agreement on or before July 15, 2019.
“The Company is looking forward to the prospects of an agreement with Canna Provisions Inc. with the intent of introducing our growing brands into Massachusetts and the Northeastern market of the United States,” CannAmerica CEO and Co-Founder Dan Anglin stated.
“The Massachusetts adult use marketplace is thriving and a perfect fit for CannAmerica Brands concept and products. Expanding into this marketplace was a fundamental goal for the brand and is an important milestone in reaching the Company’s growth goals for 2019,” Anglin added.