CANBUD has signed an LOI agreement with Hempsana, a Canadian licensed cannabis processing company with an EU GMP compliant facility in Ontario, Canada. Hempsana is focussed on the extraction, purification, marketing, and distribution of cannabinoid derivatives. This agreement entails a strategic symbiotic partnership to achieve the processing, manufacturing, packaging and distribution of CBD concentrates and products from hemp biomass.
Canbud will leverage its direct sales ability of CBD products to the Canadian medical-patient distribution channels as authorized by the company’s Health Canada Sale for Medical Purposes Licence, both parties to bring in their clinic network as part of the distribution network for the purpose of the agreement.
The agreement further entails a profit-share model for the purpose of commercialization, with preferential extraction costs payable to Hempsana to be deducted from gross sales along with storage and holding costs. Other costs such as bottling, sales, biomass, clinic royalties shall be split between the parties, with net profits to be equally distributed between the parties allowing for efficient scale up of operations.
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