Newstrike Brands Ltd (OTCMKTS:NWKRF) has entered into an exclusive agreement with Peter Neal and Chris Neal, the owners of Neal Brothers Inc. The duo has agreed to collaborate in the creation of co-branded edibles, to develop, market and sell cannabis edibles. The terms of agreement dictate that Newstrike will own 60%. On the other hand, Neal Brothers Inc., best known for its chips and salsa will own 40%.
The joint venture aims at developing trusted and consumer-focused products, which will enhance the expansion of the Cannabis sector. The two will apply their expertise and capabilities in delivering leading-edge edible cannabis products.
A venture focused on creating a premium brand of products
Newstrike has the license to cultivate and sell cannabis. Neal Brothers has a track record of innovation and through their distribution, they have captured the Canadian retail marketplace. This is the sole reason why the CEO of Newstrike is so optimistic about being able to develop high-quality products.
Jay Wilgar notes, “Through our joint venture with Neal Brothers, we will engage in vast consumer insights, as well as in-house R&D to create real products that will stand the test of time in the consumer packaged goods (CPG) space.”
The primary goal by the duo is to be part of a developing sector which has continued to showcase tremendous opportunities for growth. This has been necessitated by the increasing demand for medical cannabis products. Thus the venture will endeavor to meet the consumer’s desires through the development of premium edible cannabis products.
The agreement by Newstrike and Neal Brothers comes with various terms and conditions. The brothers will provide advisory services to Newstrike. For the 30 years the company has been in the market, they have invested in culture and style. From the look for things, Neal Brothers are elated about establishing long-lasting partnerships with various industry players. The move is worth it given the massive investment that is running through the industry.
Meanwhile, Newstrike has also approached select strategic partners such as The Tragically Hip in the development of a network of high-quality cannabis brands.