Auxly Cannabis (TSXV: XLY) this morning announced that its PEI-based subsidiary Dosecann has entered into an agreement to be the exclusive manufacturer, distributor and seller of Dosist branded cannabis products. A value was not placed on the arrangement.
Under the terms of the agreement, dosist is stated to provide Dosecann “with an exclusive license to the intellectual property required for Dosecann to manufacture, distribute, and sell Dosist’s branded cannabis products.” In exchange, Auxly will receive fees for manufacturing and distribution, as well as the first right offer to manufacture any future products by the company.
It’s been indicated that the license is applicable to dosist’s new products including the dose pen 100, a new line of products referred to as thc-plus, as well as a new rechargeable dose pen system. It’s not entirely clear if the exclusive agreement also includes previous variants of dosist products, which were previously being manufactured by Aphria Inc (TSX: APHA) (NASDAQ: APHA), or what the status of the prior arrangement currently is.
The arrangement is valid for a period of three years, with an optional renewal available for a further two years.
Auxly Cannabis last traded at $0.31 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
