Creso Pharma (ASX: CPH) this morning announced that it has signed a non-binding letter of intent with that of ImpACTIVE Holdings. The LOI outlines the distribution of a suite of hemp CBD based products, CannaDOL and cannaQIX, in both Canada and the United States.
The arrangement will see both of Creso’s hemp based CBD products meant for human consumption distributed by ImpActive, which is a Canadian firm focused on reducing muscle and joint inflammation, particularly as they related to sports injuries. ImpActive itself has developed a number of CBD products focused on removing the use of narcotics or prescription pharmaceuticals for such injuries.
Under the terms of the non-binding letter of intent, both Creso and ImpActive have agreed to enter a formal commercial agreement by April 1, 2021. The commercial agreement is to determine the terms under which both CannaDOL and cannaQIX will be distributed, with Creso also to become an authorized distributor of ImpActive’s CBD based roll on products in Switzerland and Europe.
“We are very proud to enter the sports and recreational market with such a high calibre partner as ImpACTIVE. This LOI is important for Creso Pharma, as it further broadens our international footprint and provides another large market opportunity.”Jorge Wernli, Commercial Director of Creso Pharma
The initial term of the arrangement is currently pegged at one year, with an automatic renewal for a second year.
Creso Pharma last traded at $0.20 on the ASX.
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