Vancouver, Canada-based Lifestyle Delivery Systems (CSE: LDS) (OTCQX: LDSYF) is forming a joint venture with National Green Biomed (NGB) to build CannaStrips in Canada.
The companies signed a memorandum of understanding to create a venture which will build and operate a CannaStrips manufacturing facility in Mission, British Columbia.
CannaStrips is Lifestyle Delivery’s flagship product currently only available within the state of California.
It is a safe cannabis consumption method without the negative effects of smoking, as the company claims. Each strip has a consistent dosage and allows for a discrete and comfortable delivery system. It relieves pain and enhances relaxation, according to the product’s webpage.
JV to Bring CannaStrips to Canada
Under the terms of the proposed agreement, NGB will provide an extension of its Rosebud Health Canada License to the JV and land for the new facility to manufacture CannaStrips.
Upon completion of a definitive agreement, LDS will invest C$255,000 in a private placement for NGB common shares of at $0.30 per share.
LDS will provide funds for the permits, design, and build-out of the facility, while NGB will receive a royalty on all sales from the Mission facility. It will get a 5% royalty for sales in Canada and a 3% royalty on all sales outside of Canada.
The Mission facility will be required to purchase raw material from NGB and provide custom processing for future products or business opportunities presented by NGB.