Under the terms of a letter of intent, WCE will install certain extraction and processing systems at Canntab’s production facility in Markham, Ontario. Those systems also include WCE’s BOSS next generation CO2 cannabis extraction system.
Following execution of the definitive joint venture agreement, WCE and Canntab will each hold a 50% stake in the joint venture. The equipment, which will be acquired by the joint venture from WCE, will initially have an extraction and processing capacity of up 225 kilos of biomass per day, which could provide approximately 18 kilos of oil from high potency cannabis. This could then be used to create approximately 1,800,000 10mg tablets.
Under the agreement, the equipment will remain the property of WCE until all costs are paid, at which time the equipment will become the property of the joint venture.
WCE is expected to begin delivery and installation of the systems this month.
Canntab is a Canadian company engaged in the research and development of pharmaceutical-grade formulations of cannabinoids and terpenes. The company is a late stage applicant seeking Health Canada approval to process cannabis derivatives at the facility.