Choom Holdings (CSE: CHOO) (OTCQB: CHOOF) is looking to enter the CBD animal health products market.
The Canadian firm has signed a memorandum of understanding with U.S.-based Better Choice Co. for the exclusive distribution rights to the company’s cannabidiol Bona Vida products designed for animal health and wellness once approved for sale in Canada.
The terms of the MOU are not disclosed.
U.S. pet owners are estimated to have spent over $70 billion in 2018 on pet supplies, treatments and veterinary care, according to the American Pet Products Association.
Better Choice Products
Under its Bona Vida brand, Better Choice offers CBD pet-focused products in the form of oils and soft chews with formulations designed to aid the state of good health and well-being in pets.
Bona Vida has formulations targeting animals relaxation and heart support, muscle and joint, as well as, skin and body.
“We recognize the importance of growing our brand portfolio and having the sole distribution rights for Better Choice products helps us achieve that in an entirely new market on the horizon in pet use products,” Chris Bogart, the CEO of Choom, said in a statement.
“From what we know of in the United States, the CBD products for pet use market has proven to be a high margin business. As the normalization of cannabis-based products in Canada grows, consumers will begin to shift towards these new natural alternative treatments for their pets,” Bogart added.