The company on Wednesday said it had inked a non-binding Letter of Intent (LOI) with Labsco Promedic SA de CV
Pot-pill developer Canntab Therapeutics Limited () told investors it was to enter the medicinal cannabis market in Mexico, sending shares higher.
The company on Wednesday said it had inked a non-binding Letter of Intent (LOI) with Labsco Promedic SA de CV of Monterrey, Mexico over a joint venture for an initial period of five years.
Meanwhile, Canntab shall license current patents and know-how, subject to completion of a license agreement.
Canntab will also produce products in bulk from its Canadian facilities, and shall provide products to the joint venture at an agreed price and margin.
"Following several months of discussion including introductory due diligence, we are pleased to welcome Labsco and their team to the Canntab family," said Jeff Renwick, chief executive at Canntab.
"We are excited about the potential for our sustained release tablet formulations of cannabinoids in the Mexican market.
"Following our recently announced application to Health Canada to become a Licenced Producer under the ACMPR, and along with our production facility in collaboration with , Canntab is building a significant international distribution network for its products. Labsco is the newest addition to this developing line of business for Canntab".
It is worth noting that the letter of intent is subject to completion of a definitive agreement.
Canntab said it expects anticipates to complete the formal agreement before the end of the year.
The firm's shares added just over 8% in Toronto to stand at $1.30 each.